Daphne Tries To "Join"? Daphne Is Not Optimistic At Both Ends.

400 stores closed in the first three quarters.

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I am afraid that it is difficult to get out of the tide.

Reporters at Yonghui supermarket Ru Valley outside the rental area to see, before the normal business of Daphne yesterday closed tightly, shelves have been emptied, this is not Daphne for the first time.

Close shop.

For the women's shoes brand that has been declining for a long time, the way of layoffs and sales profits has not yet seen the end, and it has been accompanied by direct competition between franchisees for several years.

Daphne's stores in Beijing are mainly located in the external rental areas of major supermarkets, but there are few independent counters in shopping malls and shopping centers and street shops.

The Daphne store, which is located outside the rented valley area of Yonghui supermarket in the West Fifth Ring Road, suddenly closed, the product was packaged and placed in the store at random, and the brand LOGO was also taken off.

At the beginning of this year, a Daphne in Zhengyang bridge in Nancheng, Beijing, was quietly closed. Such a situation occurred synchronously in other cities of the country, more frequent than in Beijing.

Daphne's financial report shows that in the three quarter, there were 219 outlets in the sales outlets, and 181 outlets in the first half of the year. The total number of stores in the three quarter exceeded the total number of stores in the first two quarters.

As of the first three quarters, Daphne has closed 400 stores.

The growth rate of sales in the same store in the first two quarters was -16.9% and -17.7% respectively, and in the three quarter, the situation continued to deteriorate to -19.7%.

Daphne's performance declined in 2012, and the 2011-2014 year company's financial report showed that the growth rate of the same store was 21%, 9%, -10.4%, and -3.4%, respectively.

Poor performance directly affects revenue and profits.

Daphne's 2015 semi annual report showed that operating profit plunged 95.4%, down from HK $240 million in the same period last year to HK $11 million, which was mainly affected by the significant pressure of revenue decline, the high fixed cost structure of retail business and the inflationary pressure of major operating costs. The operating profit rate dropped to only 1%, compared with 5.7% in the same period last year.

Net profit also decreased by 98.5% to HK $2 million 500 thousand, compared with HK $170 million in the same period last year.

Daphne said it would focus on improving sales, improving inventory management, controlling spending and strengthening e-commerce development.

However, Daphne's improvement plan has not been implemented very well since the number of stores in the three quarter and the more serious sales data in the same store.

In addition to facing the external problems of shrinking domestic consumption demand and declining purchase rate, let Daphne also have an internal franchisee problem. In October, at the 2016 spring order meeting, the franchisees staged a collective protest. Subsequently, dozens of franchisees from all over the country went to Daphne in Shanghai.

In the view of franchisees, it is a serious way to hurt the normal business operation that the franchisees digest the inventory products, the franchisees digest the inventory products, and the direct stores are selling less than the franchised stores. These actions seem to be a way for Daphne to try to "join the company".

This is not the first confrontation between Daphne and franchisees.

As of the end of June, Daphne accounted for less than 10% of the franchise.

When Daphne started, the proportion of franchisees was about 80%.

One is determined to join the alliance, one is to stop the decline in performance, the two fires Daphne wants to improve is not optimistic.