Will Wanda's Life Cease? What's Wrong With Closing Stores?

At the beginning of 2015, Wanda's department store would shut down 10 department stores which were badly damaged in Ningbo, Shenyang and Dongguan, and compress 25 department stores which were not well managed. Wanda intends to close 10 department stores, which are all department stores in Wanda Plaza.

In mid July 2015, Wang Jianlin, chairman of Wanda Group, said at the board that "half of the department stores in the country should be shut down". Wanda Group has decided to implement a bold business transformation plan, which will close 46 of the 90 stores in the country. The profit stores will be temporarily retained and will continue to adjust.

By November 2015, the number of Wanda Department stores will reach more than 50, accounting for nearly 50% of Wanda Department stores nationwide.

In early 2015, the 10 department stores that were shut down by Wanda were located in Ningbo Yuyao, Hunnan, Shenyang, Jiangsu Changan, Jiangsu Yixing, Jiangsu Taicang, Wenzhou Wenzhou, Wenzhou, Wei, North and Dongguan.

In early 2014, Wanda also announced that it is expected that by 2015, the number of opening stores will reach 120, with a business area of 3 million 600 thousand square meters.

At present, Wanda Department store can only get farther and farther away from this goal. Wang Jianlin, chairman of Wanda Group, said that in the second half of 2015, Wanda financial group was formally established, and commercial real estate and general merchandise business, which had been the core business of Wanda, were placed in a secondary position because of declining performance.

As of 2015, Wanda Department store had more than 90 stores in the country, and Wang Jianlin, chairman of the company, said that half of the stores in Wanda were in a state of loss.

According to public information, Wanda Department Store in 2014 Net profit Increase deficit 7%, deficit expands ceaselessly. Therefore, Wanda Group launched the nationwide massacre of Wanda Department stores this summer, and Wanda Department stores will close 46 stores nationwide and the remaining 39 stores.

Qu Dejun, President of Wanda business administration, said publicly that the adjustment of Wanda Department store will be a concrete analysis of the specific situation, because the "store" is suitable.

Wanda Plaza, which is suitable for large-scale retail operation, will continue to operate retail formats. For Wanda Plaza, which is not suitable for large-scale retail operation, it will reclassify the original department stores and introduce more suitable formats for Wanda Plaza.

Suning, which is widely known in the industry, is familiar with Suning sources. Suning is in contact with Wanda and wants to withdraw from suning.com's cloud store in Wanda Department store.

Why did the industry leader Wanda Department lose so much? According to Wanda insider, on the one hand, the location of Wanda Department itself in Wanda Group, on the one hand, how to treat it. Wanda Department Store A loss account.

Wanda Group's real estate profit model has always taken the land at the edge of the city at a low price, and has formed a new business circle through its own Wanda Plaza, department stores, cinema and other facilities to attract investors and merchants, thereby raising the premium. The location of Wanda Department Store is far away from the core area, and its efficiency is not ideal. Because of its positioning, it loses its core value and is abandoned.

In addition, Wanda Department stores are really losing so much money, according to insiders from Wanda Department store. Shop rent Disproportionate. "But the rent is also collected by Wanda, so the Department can not afford to rent the land, it is also Wanda's own money. Therefore, it is probably just a word of Wang Jianlin to deny the Wanda Department Store solely on grounds of loss. Department store insiders said.