Xinhua Closed The Layout Strategy Of East China Stores

Xinhua is evacuated from East China. Is it not well managed or is there something else? At present, most of Xinhua stores are located in Fujian and surrounding areas. Closing East China stores means that the expansion of other places has failed.

It is not hard to see that Xinhua is experiencing a severe test, and its expansion and operation pressure is growing.

For Xinhua, the East China region has become the "worst hit area", which has seriously weighed down its performance.

It is reported that Xinhua involves 1 stores in Shanghai, 1 in Hangzhou and 2 in Ningbo.

On the insider, Xinhua closed the door store, the reporter to Xinhua Dong Fang Gong Yan to verify the ice, the other said: "now East China has four stores, there is not heard that the East China stores to close or sell the relevant matters, no more information can be exposed," rather than direct denial.

According to a retail insider, Xinhua had discussed with its companies the sale of stores in East China. "Considering that the risk of Huadu's stores in eastern China is too great, not only the location of the stores is poor, but also the rent is high, so we declined.

However, Xinhua not only talked about the sale of a store with an enterprise, but Xinhua also talked with many enterprises about the sale of four shops in East China.

According to Gong Yanbing, at present, Xinhua has only stores in Fujian, Jiangxi and Guangdong Shantou.

Asked why the news will be heard at this time, Gong Yanbing said he did not know.

However, he also pointed out that at present, Xinhua has more than 100 supermarkets in Fujian. In recent years, the rate of opening shops has been very slow, mainly due to the downturn in the industry, and the opening of stores has become more cautious.

"In the future, Xinhua is still dominated by Fujian local businesses, and there will be no big moves."

Gong Yanbing said.

According to an analysis of Xinhua people, it is estimated that no one in the market is willing to take over the four stores at the same time.

"Perhaps Xinhua will carry out such a program, such as Ningbo stores looking for local businesses, and Hangzhou stores will take part in local businesses and sell them separately.

But anyway, Xinhua will eventually dispose of these stores. "

In fact, it is the acquisition of easy buy to expand to Xinhua buried hidden dangers.

By the end of 2011, Xinhua bought 125 million of the largest supermarket in Korea, and bought it in 6 stores in China.

However, when the weather failed, people would like to say that "Yi bought itself is not very good, and the location of the business circle is not outstanding. Xinhua did not make any changes after taking over, and the store was totally expecting."

Ding Liguo, a senior retail expert, said that Xinhua stores were not even surprised, especially in the context of domestic stores.

That's true. According to the 2013 annual report released by Xinhua, its net profit loss in 2013 amounted to 236 million yuan. In 2013, Xinhua closed 16 stores.

Another reporter read Xinhua Daily 2014 China Daily reported that in the first half of 2014, the Ningbo Xinhua supermarket limited company lost 16 million yuan in the first half of the year, and the Hangzhou Xinhua supermarket limited company reached 21 million yuan.

"Closing stores in East China also means that the expansion of Xinhua has failed."

Ding Liguo said, in fact, the store system of Xinhua is just struggling to maintain.

Weak operation, retail business will be abandoned

Actually,

The closure of the stores in East China or because of the acclimatization of the East China market, the competition in the East China market is too intense. Xinhua is a typical extensive operation enterprise. For example, SKU, the fine management level of goods is far from that of Da Yun FA and Yonghui.

Xinhua also lacks competitive advantage in the procurement of goods.

Reporters learned that in 2010, when Xinhua did not take over, the annual losses of four subsidiaries in Ningbo, Changzhou, Hangzhou and Taizhou were 28 million 850 thousand yuan, 21 million 830 thousand yuan, 19 million 60 thousand yuan and 4 million 790 thousand yuan respectively.

That being the case, why did Xinhua buy the store of easy buy?

In this regard,

According to expert Liu Hui, in fact, the acquisition of Yi bought by Xinhua has nothing to do with the capital market. After all, the acquisition of the foreign business is easy.

In Liu Hui's view, Xinhua feels that the outside world is a capital run enterprise rather than a real retail enterprise.

"The most important thing is that Xinhua has no clear strategy for retail business, and what it hopes to achieve, there is no specific plan."

In the view of Ding Li, Xinhua has department stores, supermarkets and shopping malls, but whether it is mainly regional or national expansion is not clear.

As we all know, the retail industry has not done well in recent years. Only by focusing on the needs of customers can we win the market. If we simply do not think about the essence of retail business by capital operation, we can only close the shop.

Liu Hui said that compared with its "fellow townsman" Yonghui concentrating on the retail industry, Xinhua is more diversified, and retail is only part of its territory.

"The key lies in the fact that Chen FA Shu, the boss of Xinhua, is not in the retail business. He can still do something according to his strength, but the retailing must be intensive and intensive. Although Chen FA Shu is a department store, it will be out of hand after it has pferred the battlefield to the development of gold mines. After all, investment and capital operation will make money more quickly.

Chen doesn't focus on retail sales, but he hasn't given up retail business for many years.

Ding Liguo thinks.

According to a person familiar with Xinhua, when Chen began to enter the gold industry, he had thought of throwing away the retail business, but he did not make it.

At the beginning of this year, the executives of New Huadu also made clear that our direction in the coming years is still shrinking. The main battleground will be put in Fujian, which will not increase too many stores. On the contrary, it will substantially reduce the number of shops opened in previous years.

By the end of June 30, 2014, the total number of Xinhua stores was 124, mainly distributed in Fujian, Guangdong, Guizhou and other places.

However, Gong Yanbing told reporters that stores in Guizhou had also been closed in 2014.

It can be seen that these years retail has not only become the main business of Xinhua, but is still shrinking.

Xue Shengwen, a senior researcher at CIC, said that the overall environment of the retail industry is not good enough. Xinhua is itself adjusting its business pformation from business to business and real estate.

According to the reporter, Xinhua is also moving towards the direction of industrial real estate. Recently, its layout has been related internally. Perhaps in the near future, retail will become its abandoned son.