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    Retail Business In Chongqing Business District Is In Trouble

    2015/11/16 22:25:00 42

    Business DistrictDepartment StoreRetailChongqing

    In recent years, with the continuous expansion of the old business circle and the emergence of new business circles, hundreds of thousands of square meters in the major cities of the country are everywhere.

    Some small towns with a population of less than 100 thousand have built 2.3 million square meters of business circle.

    Under the background of the rapid rise of the electricity supplier, how to deal with the business district based on the traditional department store retail format is a common topic faced by cities across the country.

    "Under the line clothing business is becoming more and more difficult to do! The store is running too much and the pressure of operation is too great. I can only keep one and sell more clothes to the Internet."

    In November 11th, Liu Gang, a citizen of Chongqing who had been in the clothing business for more than 10 years, was helpless when he talked about his experience.

    From the first half of 2014, Liu Gang began to withdraw from department stores and gradually shut down 3 clothing stores located in department stores.

      

    Online retailers

    "Double 11 Shopping Festival" is huge and threatening.

    November 11th zero 12 minutes and 28 seconds, Ali trading volume will exceed 10 billion yuan, once again let people see the strong attraction of electricity supplier to consumers.

    Liu Gang's experience, the popularity of online shopping, reflects the fact that the city commercial circle, which is mainly based on traditional department stores, is in a predicament.

    "Since 2014, affected by the continued economic pressure and the impact of electricity providers, China's retail industry has been facing the biggest challenge since reform and opening up, and is in the most difficult period at present."

    Recently, in the thirteenth China (Chongqing) commercial block industry annual meeting and the second Chongqing Business Circle Development Summit (hereinafter referred to as "Chongqing Business Circle Development Summit"), Renmin University of China professor Huang Guoxiong expressed with great concern.

    On the afternoon of November 7th, a business district in the main city of Chongqing was surging, but in a department store on the side of the street, there was another scene. Some of the pavements on the third floor were vacant, and the four floor was completely closed. Only the first and two floors were still operating normally, but the traffic volume was also small.

    A businessman disclosed that as early as July this year, due to poor business performance, the mall forced some merchants to withdraw. The reason given was "adjusting the format".

    This phenomenon is not a case in the country.

    It was reported publicly that

    Wanda Department Store

    There are more than 90 stores in the country. At the beginning of this year, 10 serious losses were closed, while 25 poorly managed department stores were compressed.

    Recently, the company has included more than 40 loss stores in Ji'nan, Tangshan, Jiangmen, Wenzhou, Shenyang and Hubei, Jingzhou and other regions in the new customs shop plan.

    According to the latest statistics released by the joint venture network, in 2014, the main

    Retail enterprises

    (department stores, supermarkets) closed a total of 201 stores, the number increased by about 474% over the past year.

    In the first half of 2015, the figure reached 120.

    Behind the closure of the store is the growth of traditional retail businesses in all major business circles across the country, and the declining profits.

    The reporter combed the financial data of 30 retail listed companies that had disclosed three quarterly reports in 2015, and found that the operating income dropped to 19, and net profit fell 18, accounting for about 6 percent.

    Among them, the net profit of 11 companies dropped by more than 4.

    In Chongqing, department stores also began to show signs of declining operating performance.

    According to the semi annual report released by Chongqing department store in 2015, the company achieved operating income of about 16 billion 100 million yuan in the first half of this year, a decrease of about 1% over the same period last year, and realized a total profit of 493 million yuan, down 2.35% from the same period last year.


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