Retail Giants Face Cost Challenges And Business Shocks

Why do so many retail giants suffer from the decline or even loss of profits?

In a 24 day global retailer activity survey released by the world bank, Richard Ellis surveyed the biggest concerns of retailers in the global expansion in 2015. 47% answered the question of rising costs and sluggish economic forecasts. Only 1% answered the question of foreign direct investment and 2% were lack of logistics networks.

Therefore, the high cost is the first problem that the entity can not evade.

Reporters learned that although Huarun has its own advantages in real estate projects, for most retailers or department stores, leasing is the most important way, even if Huarun department stores, a large proportion of them are rental stores.

"These years have just reached the expiration stage of the 10 year lease, and the rent of many items is going up. This is an unavoidable problem. You have to pay a few times the cost of opening a shop many years ago if you want to see the new store or renew the old shop."

Mr. Shen, who has been engaged in large-scale retail business for a long time, told reporters.

The decline of the environment is also one of the influencing factors. For example, Wangfujing department store pointed out that the decline in its operating income last year was mainly influenced by the macro environment and related policies.

World Bank Richard's global

Business activity survey also shows that retailers are slightly hesitant about expansion in the uncertain economic outlook, and the proportion of retailers who have opened more than 40 stores in the Asia Pacific region has shrunk to 5%.

Besides,

Changes and financial dragging are the reasons for some companies' profits.

For example, there were frequent changes in the management of Bu bee Lianhua, and in 2012, major personnel adjustments were made. The former WAL-MART executive Chen Yaochang served as CEO.

But Chen Yaochang's expansion strategy has not stopped the decline in performance, and his position has been adjusted.

Huarun venture said its profit decline last year was mainly influenced by the acquisition of Tesco Tesco. Group management expects Tesco's joint venture to break even in the next three to five years.

Of course, one of the most direct factors is

The impact.

Guangzhou friendship said that the diversion of market share by Internet retailing last year is obvious, and the overall growth of the traditional retail industry has further slowed down, with multiple difficulties and challenges intertwined.

Wangfujing department stores are blunt. The rapid development of Internet retailing and cross-border electricity providers has a certain impact on the revenue growth of the company and the industry.

Huarun venture believes that competition from the electricity supplier industry has had a knock on earnings, affecting retail sales in the same store, down 2.6% from a year ago.

Under many challenges, the profit of physical retailers is worrying.