Three Years Of Huge Losses In Foreign Supermarkets

As the first batch of foreign supermarkets to enter China, they have been losing money for three years in a row for the acquisition of Wumart.

Despite the latest earnings report, there are signs of narrowing of the loss of lotus, but the embarrassment is that all the 7 lost stores have been paid by the parent group.

In supermarkets, the main business is changeable.

The frequent turnover of executives also makes it impossible to develop in China.

This is also the first research report released by the North Business Research Institute based on company research.

Reporter analysis: 2012 is a major pformation period of the lotus bee. The former WAL-MART executive Chen Yaochang tried to change after CEO.

Supermarket life hall, but bu bee lotus is still hard to stop declining performance.

Subsequently, Li Wenhai was appointed senior vice chairman and CEO, and began to try to advance steadily and steadily.

But the frequent change of coach seems to show that this foreign company is not reliable in management.

In addition, the divination and lotus flower mostly exist in the form of single store, and the business model has been lagging behind, far behind the foreign capital and even the local counterparts, and has not been improved for many years. In management, the maladies of family business and the situation in each region are prominent.

Reporter analysis: from the performance data, we can see the operation track of Bu bee lotus in China.

In October 2013, Wuming planned to buy the retail business of the bee lotus in East China and North China, involving 36 shops outside Guangdong and Hunan, at a price of HK $2 billion 345 million.

This means that the bee lotus completely gave up the chance to reform the business mode and make up for the shortage.

Compared with the previous two years' losses, the turnover increased by 0.3% in 2014 and 58 million 400 thousand yuan in losses. However, bu Hua lotus said that the increase in sales was due to the revenue of 4 new stores opened in 2014, but this profit was also offset by the sale of 7 loss shops to Affiliated Companies, the wholly-owned group of Chia Tai Group, last year at 2. 51 billion yuan last year.

According to the financial report, after selling the store, the lotus flower made only 290 thousand yuan in the end.

Reporter analysis: in the past five years,

The group strategy has been changing all the time. In the past 2011-2012 years, the bee lotus test water is different from the general convenience store or supermarket's new business form, which is different from the new format of the living hall of the hypermarket and supermarket. But in 2013, the financial report shows that the bee lotus flower closes 2 living rooms.

Although the concept of living hall was still put forward in the 2014 earnings report, it did not mention the number and development of the stores.

Lotus has tried many times to pform itself into high-end supermarkets, shopping centers and other formats, but each time it is hard to achieve.

In addition, in 2003, the bee lotus introduced the "100 store plan", which opened 100 stores in three years.

But now it seems that this goal is hard to achieve.

From the perspective of the regional layout of the lotus, the location is rather loose, the scale can not be formed, and it is difficult to form an influence in the local consumer market. There are only one or two stores in some provinces.