Retail Sector Stocks Hot Gao Xin Retail 16 New Stores

For Gao Xin retail, one of the more high-profile events last year is the operation of its electronic business website, the flying cattle line. Relying on the offline stores as distribution points, the flying cattle Network opened the online to offline (O2O) project in March this year. In June of this year, the third party platform was launched.

At the performance meeting, Mei Si pointed out that the current retail business of Gao Xin's retail business accounts for only about 1% of the total turnover. It said that it will not have a chance to cooperate with Alibaba and other large electricity providers in the future.

Morgan Stanley reports that it is estimated that the annual retail income of Gao Xin is up to 1 billion 500 million yuan. However, sales under the Gao Xin line remain challenging. The stock price has been reflected. The group will actively develop electronic commerce in the future, and it is likely to cooperate with other electricity suppliers and O2O platforms to transform or bring risks.

Due to a series of mergers and acquisitions in the industry, the recent retail sector Individual stock The performance is unusually hot, but that does not mean that the performance of the company is as red as that of the stock price.

In August 12th, Gao Xin retail owned two brands, big Rand and Auchan, released the 2015 China Daily. Data show that as of the end of 6, the turnover in the first half of the year was 50 billion 708 million yuan, a slight increase of 5.6% over the same period last year, and net profit of 1 billion 476 million yuan, down 13.7% from the same period last year. In March, the annual net profit of 2014 was increased by 4.8% to 2 billion 908 million yuan over the same period last year. The daily economic news reporter noted that the turnover of Gao Xin retail was divided into two parts: sales income and rental income. By the end of 6 this year, the group's sales revenue in the first half of the year was 49 billion 193 million yuan, an increase of 5.4% over the same period last year. The increase was mainly due to the group's continued expansion of business through the opening of new stores and the development of e-commerce.

Announcements show that from July 1, 2014 to the end of June this year, Gao Xin retail opened 61 new stores, including 16 new shops in the first half of this year: Auchan There are 2 new stores, and 14 new stores.

It is worth mentioning that as of the end of 6 this year, through the signing of the lease or acquisition of land plots, Gao Xin retail has identified and identified 146 locations. Comprehensive hypermarket 100 of them are under construction.

Gao Xin's retail store has grown, but sales in the same store are still not ideal. In the context of a 1.6% decline last year, its same store sales fell 3.4% in the first half of this year. For the same store sales growth rate negative, the company's explanation is: mainly due to the overall domestic consumer market growth slowed and fierce competition from other consumer channels.

In a performance press conference held yesterday (August 13th), Gao Xin, chief executive of retailing, said that the company's profit in the first half of the year has declined, mainly due to a drop in the domestic economic market and a loss in the company's newly opened stores. It is expected that the same store sales decline in the second half of the year will be comparable to that in the first half of the year, or about 3%~4%.

Reporters learned that as of June 30, 2015, about 9% of Gao Xin's retail outlets are located in first tier cities, 17% of which are located in second tier cities, 45% of which are located in three tier cities, 21% of which are located in four cities, 7% of which are located in five tier cities. The three or four line city is the main market of Gao Xin retail. When the retail industry entered a downturn in 2013, it was regarded as a "dark horse" by its double growth in revenues and profits.

However, this performance began to change last year. In the view of the industry, this is directly related to its relative high-speed expansion scale and the vigorous development of online business.