Hua Tang Shopping Center, Beijing, Once Again Closed A Foreign Department Store In China And Fought Back.

Nowadays, the competition of department stores in China is becoming more and more intense, and the changes of business environment and the impact of the electricity supplier make the foreign capital department without localization become a retreat.

Shortly after the announcement of a recent British well-known retailer, Marsha general, to close 5 stores in Shanghai, it belonged to the 7-Eleven, the largest convenience store in the world, belonging to a parent company in Beijing. Ito Yokado The right wing store also announced that it will be closed from April 1, 2015.

According to public information, the right shop of the halls store opened in September 28, 2007 and has been in operation for 7 and a half years, and it is already the fourth shop in Beijing. Although the reason for the publicity of the mall is "the company's business structure adjustment", the relevant official of the planning department of the halls, in response to a reporter's interview, admitted that the reason why the shop was still open to business is still in a state of loss. "Compared with the opening hours, although it has a certain growth, it is very slow, and the profit growth is not enough to make up for the expenditure, resulting in a continuous deficit."

Tao Wensheng, a Peking University longitudinal partner, said in an interview with reporters that today, the competitive environment of department stores in China is becoming more and more intense, and the changes in the business environment and the impact of the electricity supplier have made it impossible to achieve the localization of foreign capital stores.

Specifically, " Marks & Spencer Most of them are private brands, the price is higher than the fast fashion brand ZARA and so on, but it is not as fast as fashion brand in the style and style, while the halls shopping mall is faced with unclear positioning, the brand introduced by the shopping mall is not fashionable enough, and the goods offered are different from the needs of customers. Insiders added.

Foreign department stores retreat

As a matter of fact, as early as February 28th, the right store of Hua Tang store posted a notice of closing shop at the door of the shop. "We regret to inform you that due to the structural adjustment of the company, the right store will be closed from April 1, 2015. But before the evening of March 31, 2015, the shopping malls are still operating normally, and the facilities and facilities are in normal operation. Please feel free to shop.

In March 7th, the reporter visited the right store of Beijing Hua Tang shopping mall near the Taoranting Park subway station in the southern Second Ring Road.

Reporters at the scene, including the first floor, including 6 floors of the halls shopping malls crowded with shoppers. The slogans of "50 percent off" and "70 percent off" can be seen everywhere, especially the slogans of "55 yuan per gram of gold jewelry" in the first floor of the gold ornament area, so that all the gold jewelry counters are full of people.

Careful observation shows that most of the people who come shopping are nearby residents. A Huang surnamed lady told reporters, "because of Customs shops, some of the shopping malls do have price cuts, and some commodities are still the original price."

Another Couture The shop assistant even sighed, "there are never so many people in the mall. "Hua Tang is a Japanese shop. The clothing we sell is arranged by the company. This shop is closed, and there are other stores that are not affected by much."

Public information shows that the halls store closed 3 stores in Beijing last year. Now there are only 4 stores and 1 food shops in the store in Beijing (including ten Libao, Asian Sports Village store, Fengtai North Road store, Daxing restaurant and Sanlitun Food Museum). The relevant person in charge of the planning department said that 5 stores in operation were in a good rising state. "The right store will be the last closed shop in this adjustment."

In addition to the fact that the Japanese retail enterprises in China were blocked in China, Martha stores, a well-known British retailer, were also caught in a whirlpool. According to Marsha's progress in the implementation of its strategic plan in China, 5 stores in Shanghai, which will close in March 9, 2015, are Changzhou new North Wanda store, Wuxi Jiangyin Wanda shop, which will be closed in March 9, 2015, Shanghai Jiading Jiangqiao Wanda store, Wenzhou Longwan Wanda shop and Changzhou Yuet Plaza store, which will be closed between March and August March.

As for the reasons for closing the store, the head of Marsha's Department said in response to reporters, "since 2008, we have focused on the development of the Shanghai market. We have gathered a group of loyal customers through the flagship store in Shanghai, and the brand awareness is constantly improving. We conducted a detailed assessment of the two level stores in Shanghai and the surrounding second tier cities, and found that our brands were not well known in these areas. Therefore, we decided to close the five tier two stores in these areas, thereby strengthening the advantages and focusing more on the future development of China's business.

Internal and external troubles seek breakthroughs

In the past year, the halls store has closed down the Beijing Wangjing store, Beiyuan store and Xizhimen store, and now adds the right wing store. The reasons for this are all caused by losses.

In this regard, analysis of the relevant officials of the hall, from the external point of view, labor costs rise, rents and other operating costs remain high, operating profit is not enough to cover the total expenditure. From the point of view of internal operation, although shops constantly adjust themselves, they still do not accurately and quickly correspond to the changing needs of customers, resulting in the difference between the goods we offer and the needs of customers, resulting in the fact that passenger flow and sales are not up to standard. "For this reason, we have to make closed shop decisions. For the surrounding customers, we feel very sorry for not being able to better correspond to the needs of customers.

Public information shows that Hua Tang Yang Hua Tang and Chengdu Ito Yang Hua Tang are jointly established by Japanese company Ito Yang Hua Tang in 1997. They set up shop in Beijing and Chengdu respectively. Beijing stores call it "Hua Tang shopping mall" and Chengdu is called "Ito Yang Hua Tang". Ito and 7-Eleven belong to Seven&i holding company, which is Japan's largest and the fifth largest retailer in the world.

Chengdu's Ito hall and Beijing's halls and shopping malls are very different in terms of business performance. In the face of the successive closure of Beijing stores, the company once sent Ito, former general manager of Ito's Chengdu company, as the general manager of Beijing hall in May last year, but the result is still not satisfactory. Tao Wensheng, a partner in Peking University, said that the location of Hua Tang shopping mall did not match the consumption of the surrounding residents, and the location was not clear. Fashion and category can not attract the mainstream consumer groups "after 80" and "after 90" into the shop consumption.

Imai Makoto has also said that the reason why the success of Chengdu's Ito hall is the clear positioning and the middle and upper level customer groups. But the Beijing stores in Hua Tang mall are located in a chaotic location, fresh food supermarkets are high-end, and department stores are at the low end, so it is not clear which part of the customers they are trying to grasp.

For the future layout, the aforementioned officials in charge of the hall said that there was no new shop plan in Beijing's Hwa Tong in the short term, but in the long run, Ito's Yang Hua Tang would expand its investment and business in China.

In response to changes in Japanese retailers, Martha, a British department store, said that from 2015 to 2016, Martha will continue to enter key cities such as Beijing and Guangzhou. It will continue to invest in existing flagship stores and plan to complete the renovation of Nanjing West Road flagship store in autumn this year. Martha decided to close 5 stores in the Shanghai area by the end of August 2015 and assess the resource structure of Shanghai headquarters. The company launched a brand-new Martha Tmall children's wear official flagship store on Tmall in January this year, and has also entered the Jingdong and opened a clothing store.

In addition, Marsha also said that it plans to renovate the stores in Hongkong from 2015 to 2016. From 2015 to 2016, Marsha will continue to increase investment in food business, set up more food retail outlets in suitable tourist attractions and urban areas, expand the layout of the Macao market in China, and open a new store with an area of about 1000 square meters in Venice shopping mall, which is scheduled to open in November 2015.

Patrick Bousquet-Chavanne, executive director of Marsha's marketing and international business, said: "in line with the international market development strategy, the company will renovate Marsha flagship store in mainland China, Hongkong and Macao market, enter new key cities, expand the food retail network in Hongkong, China, and cover all China through shopping websites such as Tmall mall and Jingdong."

It is understood that Marsha is positioned as a "quality British lifestyle retailer" in China, and Marsha does not plan to launch third party products in the Chinese market. Tao Wensheng, a partner in Peking University, said that the buying system of Marsha's department is not suited to China's market. In China, the self brand effect of Martha is relatively low, and consumers do not buy it. At the same time, the "British way of life" can not be accepted by all.