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    Shang Tai Department Store Chengdu Stores Withdraw From China Market

    2015/6/3 15:12:00 90

    Shang Tai Department StoreMarketDepartment Store Industry

    foreign capital

    Department store

    It is doomed to be difficult to stay in the Chinese market. Whether it is from Europe, or from Parkson from Asia, it seems to have experienced a tough time in the Chinese market.

    Recently, the evacuation of Chengdu store in Shang Tai Department has added another example of foreign department stores that have crashed in the Chinese market.

    A sudden closing notice has added another example to the foreign department store that has withdrawn from the Chinese market.

    In June 2nd,

    Central Department Store

    Chengdu store official micro announced that the store "will officially cease business in August 31, 2015, and will stop membership card from June 2nd.

    "

    The reporter noted that this is the last department store closed by Shang Tai Department store after entering China 5 years ago.

    "This is the strategic adjustment of the company.

    "The relevant person in charge of the marketing department confirmed to reporters that" in the future, it will reenter China by purchasing or self building shopping centers.

    "

    Evacuate China market

    In September 2012, Chengdu store opened in Shang Tai Department store.

    Public information shows that Shang Tai Department store belongs to the central retail group of Thailand, which has two brands of Central (Shang Tai) and Robinson.

    Thailand is the premier department store, known as "Thailand retail representative", with more than 60 years of professional retail experience.

    In Thailand, we mainly run high-end department stores and shopping centers.

    It was less than 3 years before entering Chengdu, but the shop suddenly announced that it was closed.

    In June 2nd, Chengdu store of Shang Tai announced that the store will be officially closed in August 31, 2015 through its WeChat public address.

    According to the customer service, the direct reason for closing the store is the expiration of the lease of the department store.

    "This is a strategic adjustment of the company.

    "Shang Tai Department Store Chengdu market responsible person told reporters.

    "Shang Tai in Thailand mostly focuses on high-end department stores and shopping centers, rather than this single department store.

    So the company also made the decision of adjustment.

    "

    In fact, this is the last department store in China.

    In 2010, Shang Tai Department stores opened its first store in Shenyang.

    In June 2014, the store was closed.

    At that time, there were also many local media reports, and said that the Shenyang project was hit by the electricity supplier.

    At the end of 2014, the Hangzhou shop of Shang Tai also said goodbye to its customers on its official micro-blog.

    According to the responsible person, it is a strategic adjustment for Shang Tai to announce that all stores in China are closed in a year, and will enter the Chinese market again in the future.

    "Do not exclude two ways to re-enter, one is self built shopping center; the two is to buy local well run department stores.

    According to it, Shang Tai Department store had acquired good results in Italy and other countries and regions, and even realized profits for half a year.

    Foreign department stores face tough times

    The evacuation of Chengdu store of Shang Tai Department adds another example to foreign department stores that have crashed in the Chinese market.

    Whether it's from Europe.

    The Buddha

    Or Parkson from Asia seems to have experienced a tough time in the Chinese market.

    Among them, Baisheng is the most typical example of "the first store in foreign capital department stores".

    Over the past 20 years since its entry into China, the department store has experienced ups and downs from its prosperity to its decline, and then its contraction. It has also been praised as "the epitome of the development of foreign department stores in China" by the media.

    According to the performance report released by Parkson in November 10, 2014, its net profit in the first three quarters of the year was 275 million yuan, a 23.1% decline compared with the same period last year, and sales fell 0.9% to 3 billion 740 million yuan.

    According to the data quoted by a media, the number of closed stores in foreign-funded department stores accounted for 57.89% of the total number of closed stores last year, which was 15.78 percentage points higher than that of domestic department stores.

    At present, foreign department stores in China "acclimatized" almost become a consensus.

    In fact, Parkson achieved good results when it first entered China.

    "Huang Zhiqiang, President of the Chengdu Jinjiang chamber of Commerce, told the daily economic news reporter," however, the previous advantages have almost all been lost.

    "In view of it, foreign department stores that have lost their own advantages have to face 6 insurmountable mountains like the local department stores," rents, labor, utilities, taxation, decoration and inventory, and these six parts are rigid costs.

    "

    It is worth noting that the continuous increase in rents also makes the Department's cost burden increasing.

    This is why it is one of the new ways for Shang Tai to consider entering China again.

    In addition, in the industry's view, the domestic retail industry is undergoing changes. Under the economic downturn and the impact of the electricity supplier, it needs innovation and development. It is not easy for foreign department stores to achieve localization.


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