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    Modern Friendship Has Been "Thin" To Take The Initiative To Slim Down Than Sitting Still.

    2015/11/30 10:12:00 19

    ModernFriendshipRetail Business

    The electricity supplier is raging and the retail industry continues to slump. Guangzhou department stores can only "thin" in the "cold winter" and pray for breakout success. Modern department stores yesterday announced a major adjustment, and the Guangming Plaza store made up half of its operating area for rent, introducing electrical appliances stores, children's playground and catering.

    In the same way, the front of the friendship store is also reduced by nearly half of its operating area to only more than 10 thousand square meters.

    However, it is gratifying to note that a series of "downsizing" moves of Guangzhou department store have achieved good results. The turnover of modern department stores has increased by 200%, and the performance of friendship stores has also improved.

    "It's better to take the initiative to lose weight than to wait for death."

    Huang Wenjie, executive director of the Guangdong provincial Circulation Industry Association, believes that the department stores are now sweeping the whole country. The department stores, through their own pformation, can effectively reduce operating pressure by reducing the area and Subleasing the property, and can also get the effect of the complementary department store format, with two gains at one stroke.

    "Department stores introduce more supermarkets, stores, children's parks, and bring them closer to the shopping center, attracting customers to bring in business revenue growth."

    The retail industry continues to slump, and Guangzhou's major shopping centers have to reduce the proportion of department stores and increase the proportion of experiential consumption such as catering and entertainment.

    Department stores also take the initiative to reduce their own business area, instead of renting them, and introduce electrical appliances stores, children's parks and restaurants.

    The biggest move is the modern department store. Its bright square store has increased the proportion of rental. It has leased nearly half of the area to the relevant supporting businesses. It has introduced famous Gome appliances, famous brand products, green tea, children's playground such as "Tongxin Bao" and Huarun convenience supermarket.

    Modern department stores are also high-profile announcing the strategic direction of "joint venture + leasing + self operation" to the outside world.

    Before that, the modern department store was pformed into a modern department store, outlets, concentrated in Guangming Square North District, and half of the business area was leased.

    "We can not only reduce the pressure of business through subleasing, but also enrich the department store format and bring more experiential consumption to consumers."

    Luo Jianji, deputy general manager of modern department store, said that "thin body" has brought about immediate results.

    Turnover

    Obviously, business revenue increased by 200% and profits increased by 20%.

    With the entry of modern department stores, we have not only solved the problem of vacancy in Guangming square for many years, but also realized the win-win situation of the government, big owners, small owners, tenants, merchants and customers.

    Coincidentally, Guangzhou local department store brand

    friendship

    Stores also cut their business area by nearly half.

    In the first quarter of this year, the friendship store's operating income was 920 million yuan, down 20.33% from the same period last year.

    By reducing the area of operation, the performance of friendship stores has also improved.

    Last week, the modern department store West City store officially shut down.

    Since the opening of new year's day in 2013, the modern department store has been operating for less than two years.

    With the closure of the Xintang store in Zengcheng in May 13th this year, modern stores have closed two stores in half a year, and the number of stores has been reduced from 8 to 6.

    Since last year,

    Guangzhou

    The department store industry has not stopped. In the half month of May, 3 branches of local department stores in Guangzhou are facing closure.

    The failure of the operation is the reason why most of the department stores explain themselves.

    According to the statistics of the China National Business Information Center, the retail sales of 50 key large retail enterprises in the first half of the year dropped by 0.8% compared with the same period last year, and the growth rate was 11.8 percentage points lower than that of the same period last year.

    Entering the year June, the retail sales volume of 50 key large retail enterprises decreased by 0.2% compared to the same period last year, the growth rate dropped 13.7 percentage points, and only 50 of the 50 retail enterprises achieved retail sales growth, a decrease of 15 over the same period last year.

    The whole retail industry is in the "cold winter".

    The reporter observed that in just two and a half months, 13 department stores in China have been closed.


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