Why Is The Pformation Of Department Stores So Difficult?

Overall, the performance of department stores in the first half of this year is characterized by "green, fat and thin".

Data show that in the first half of this year, the retail market environment and consumption downturn have not changed significantly. The retail sales of 50 key large retail enterprises increased by 1.1% over the same period last year. The retail sales of 50 department stores in Beijing decreased by 6.28% compared with the same period last year, and the department store industry continued to face the dilemma of declining sales and narrowing profits.

Nanning department store issued the Chinese newspaper.

The report shows that during the reporting period, the company achieved operating income of 1 billion 211 million yuan, down 7.27% from the same period last year, and realized net profit of 1 million 351 thousand and 700 yuan in the first half, down 82.28% compared to the same period last year.

For the first half of this year's performance slump, Nanning department store said that the decline in revenue was mainly due to the downturn in the consumer market, the aggravation of the electricity supplier impact, and several main stores in Nanning are still affected by the subway project surrounding construction. At the same time, the Jinhu shop was in a semi stop state and poor sales.

However, it has been a long time for Nanning to repair the subway. This is not the beginning of this year. It can be seen that the impact of subway construction on the stores is only a secondary reason.

On the previous day, the Chinese newspaper published by Xinhua was even more ugly.

In the first half of this year, the company achieved operating income of 3 billion 335 million yuan, down 8.74% from the same period last year, and the net profit attributable to shareholders of listed companies was -2380.83 million, down 151.08% from the same period last year.

China Daily reported the first half of the year.

There are 5 new stores and 3 shutting down.

Xinhua said that the decline in revenue was mainly due to the weakness of the macro-economy, the downturn in the industry boom and the weak consumer willingness to consume.

On the same day with Xinhua, Beijing's department store star Cui Wei shares also released a mid year performance report.

The department store, which is known for its excellent performance in the Beijing market, has completely lost its former glory in the first half of 2015.

According to the China Daily's report, the total revenue of the company during the reporting period was about 2 billion 968 million yuan, down 3.89% from the same period last year, and the total profit was about 99 million yuan, down 12.47% compared with the same period last year.

About 73 million yuan, down 11.51% compared with the same period last year, and the basic earnings per share decreased by 21.91% compared with the same period last year.

During the reporting period, the company realized

Only 45.35% of the annual plan is completed, and the total profit is only 41.33% of the annual plan.

For the reasons for the decline in performance, the explanation of Cui Wei shares is also affected by the market environment and consumption downturn.

In addition, the performance of Zhong Bai group (Lanzhou min Bai, Hangzhou Jie Bai, new world), which had previously announced its results, was not satisfactory.

The reasons for these companies' declining performance are roughly the same as those of the three companies mentioned above.

"We are pretty good. Other companies are falling more than us."

Jiang Rongsheng, director of Cui Wei shares, told the China Commercial Daily reporter that the whole industry is depressed because of the macroeconomic downturn and the impact of the electricity supplier.

He said that the major department stores run similar businesses, and their business models are almost the same. No one can escape the fate of declining performance.