"Heavy Mode" Of Department Stores May Regain

The slogan of "returning to the essence of retailing" has been shouting for several years. Self run and deep joint venture may be the landing of this nature. Its important significance is that the brand regional agency system may collapse in the future.

More realistic significance is that many department stores have difficulty in attracting investment and have no resources to adjust themselves.

In addition, incorporating catering, entertainment and other experience formats into department store management system, changing the previous single lease mode and extensive operation is also a content of the department store's "heavy mode".

This not only helps to grasp data, standardize management, but also helps improve efficiency.

The first meaning of "heavy mode" is to maintain property.

It may be difficult for the department store to rent a place to rent again, but on the one hand, the rent is too high for years to grow.

For example, a three line city, a 46 thousand flat department store, the annual rent of about 20000000, an annual increase of 10%, but sales of shops are difficult to grow, profits decline year after year, and stores exert more efforts, are all working for the landlord; on the other hand, it is easy to make the field hot, the property value has increased, the tenancy has arrived, the landlord immediately increased the rent substantially, the original hundred stores went out, fat east to Xinxiang shop is a living example.

The second meaning of "heavy mode" is self run and deep pool.

Self employment has many advantages, but it is also very difficult. When brand regional agency system prevails, department stores can not revert to the whole state of the last century, but a certain proportion of self run, variable lease or simple joint venture can be done and should be done.

Regional leader

Through self agency brand and buyout of goods, self differentiation can make differentiation and specialization, and also improve the gross profit. It is worth exploring and promoting. In fact, some enterprises have done well, such as the fat east of Xuchang in Henan, the Yintai immortals of Hubei Xiantao, especially the latter. The whole category is very self-supporting, and has achieved 45% sales by 1/3's proprietary area, contributing 55% of gross profit.

Consortium led

It may not withdraw from the stage of history in the short term, but it will not be static. The involvement of department stores in brand goods management and inventory management is inevitable. There is no obstacle in technology. The powerful ERP system has been able to support single product management.

Deep joint operation, department stores extend upstream and assume corresponding responsibilities.

To gain more voice and benefits, this may be one of the important directions for the department store to practice internal strength.

One of the sales of department stores is "virtual sales", that is, suppliers' bottom checks, which is obviously not true sales.

A wide range of "channel fees" is an important source of store profitability, but not operating profit.

The more "virtual sales" and "virtual profits" are, the more dangerous the stores will be.

First of all, the shopping center has no bottom protection and no access fee. The brand entering the shopping center is lower than the cost of entering the department store. The fine management is the inevitable trend for the development of the shopping center. Once it is realized, the lethality of the shopping center which is tasty, fun and cheap will be more lethal.

Secondly, many disadvantaged department stores have abandoned the "bottom guard" and "passage fee", which should attract more department stores' attention. They must reduce their dependence on these "hidden rules" as soon as possible, and gradually embark on the right path of "selling real profits". This is a scientific, healthy and sustainable profit structure. To achieve this, we must enhance their business capabilities and intervene in the commodities and formats management in a substantive way. This is also a part of "heavy mode".