Retail Enterprises Will Turn To Full Channel Mode.

Under the background of the State encourages the development of "online and offline interactive emerging consumption", more retail enterprises will accelerate pformation and upgrading, turn to full channel development, and substantial adjustment of physical stores will continue.

The relevant research report of the Ministry of commerce circulation development department predicts that in order to reduce the operating costs of the entities and adapt to the trend of O2O integration, the next step will be to accelerate the adjustment of the physical outlets' layout, to turn off some of the dismal stores and adjust some of the stores to the warehouse center serving the online business. The layout of some outlets will also be optimized according to the characteristics of online sales and the distribution of logistics distribution centers, so that they will be closer to the living quarters, better integrate with online shopping, and improve the functions of ordering stores, so as to win passenger flow and business volume.

Why should we close the shop?

The director of the advertising department of Hua Tang told reporters that the shop opened in September 2007 is still in a state of loss.

Although the sales volume of the right wing store has increased since its opening, its growth rate is very slow.

From the outside, labor costs are rising and rents remain high, and operating profit is not enough to cover the total expenditure. From inside, though stores have adjusted themselves for many times, they still can not meet the changing needs of consumers in time and quickly, resulting in insufficient passenger flow and sales promotion.

On the right wing store, Hua Tang has closed 4 stores in Beijing market within one year, leaving only 4 stores and 1 food stores.

This is only a microcosm of the physical retail business.

According to the statistics of China Unicom, by the end of December 31, 2014, the total number of stores in the 201 main stores (department stores and supermarkets) closed down to 23 stores, and the total number of supermarket outlets closed 178, and 141 foreign-owned retail outlets, accounting for 70% of the total, 60 of domestic retail outlets, accounting for 30% of the total number of outlets.

The evidence for closing shop is also the latest industry data released by the O2O conference of China's chain industry in 2015: last year, the first negative growth in total labor volume and operating area of domestic physical chain stores decreased by 1.3% and 2.3% respectively.

As China's consumer market slows down and business costs rise, the retail industry is experiencing a "cold and hot" phenomenon. The entity stores are in a slump, and the development of e-commerce is in full swing.

In 2014, the retail sales of 5000 key retail enterprises monitored by the Ministry of Commerce increased by 33.2%, up 1.3 percentage points over the previous year.

By contrast, professional stores, supermarkets and department stores increased by 5.8%, 5.5% and 4.1%, respectively, down 1.7, 2.8 and 6.2 percentage points from the previous year, while the shopping centre increased by 7.7%, but also slowed down 4.5 percentage points over the previous year.

In the case of a more stable market, the development of e-commerce undoubtedly has a huge impact on the traditional retail industry.

So Zong Qinghou, who had planned to enter the retail industry, had to avoid the edge: "the retail industry has to slow down a bit" because the impact of the electricity supplier is relatively large and needs to be adjusted in a timely manner.

Against this background, through in-depth interviews, the reporter found that the entity retailing industry is confident and capable of winning the development in the process of adjustment and innovation.

"Network shock is not the most important factor for the operation of Beijing Hua Tang.

Similarly, the Chengdu Ito hall has maintained an upward trend in sales and profits.

The official told reporters that the Beijing hall needs to adjust its strategy and strategic layout, which is normal in terms of closing stores, opening stores and adjusting the format.

Although the market of Beijing is mature, but the potential is huge, Ito will not cut its investment in Beijing. In the future, it will surely take the road of expanding development.

It is understood that the right store will be the last store in Beijing closed by Hua Tang.

In response to the new

Beijing Hua Tang is speeding up its adjustment to concentrate on improving the efficiency of premium shops.

In May of last year, Beijing Huate high level personnel adjustment, Imai Makoto, general manager of the former Ito Hualien hall in Chengdu, pferred to Beijing to speed up the pformation of the company's business.

In addition, with the increasing demand of customers for the quality of products, the market prospect of boutique supermarkets is very large.

Since 2013, Hua Tang has broken the single GMS format mode in Beijing, and began to try the boutique supermarket.

Sanlitun food hall, as a new form of Beijing Hua Tang, will focus on development in the future.

"Gome's performance has proved that the electricity supplier has failed to destroy the line, and there is still great vitality under the offline store."

Wang Junzhou, President of Gome, said that online shopping and offline shopping are just different shopping scenes, which complement each other and cooperate with each other.

Consumers gradually return to rational consumption after a round of fanaticism in pure online shopping, and gradually form the priority line of purchasing fast and low-grade goods, and buying experience, installation and completeness.

When goods are available, they are more willing to choose the trend of offline stores.

As a result, Gome actively worked on the line, insisting on the strong line, opened 145 new stores in 2014, pformed 100 large stores, and expanded 154 stores.

Through the implementation of the all channel development strategy, Gome revenue grew 7% last year, and net profit increased by 43%.

At present, whether it is offline stores, online e-commerce or mobile terminals, a key point of competition is who can better satisfy consumers' pursuit of cost-effective.

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In from March 13th to 15th this year, Gome held a shopping Carnival similar to the US "black Friday", which set a record in the home appliance retail industry with a sales growth of 204.65%.

During this period, not only the volume and traffic volume of Gome online surged, but also the next 3 stores sold by the Gome offline stores, which increased the sales volume by 89.3% over the same period of the year. In addition, the Gome price of the Gome was as high as 4500 yuan, and the total price of the whole category was 3400 yuan, far exceeding that of the pure electricity supplier.

The success of Gome's sales promotion is due to its popularity and business opportunities at the lowest price of the whole network. In fact, it is unremitting efforts to strengthen the construction of core competitiveness, which has shifted from site management to commodity management, and has formed a competitive advantage by relying on low cost and efficient supply chain.

For many stores, the industry experts, including Guo Geping, President of the China Chain Store Association, have stressed that this is not the fact that the electricity supplier is too strong, but the traditional retail industry is too weak.

The entity retailing enterprises should dig their advantages and return to the retail base to serve the changing consumers' needs.

For example, we need to enhance the core value of traditional stores, strengthen the store experience, give new functions to stores, and realize the perfect combination of stores and networks.