New World Department Store Net Profit Plummeted Or Business Style Conservative.

The cold winter of department stores is still going on.

The 2015-2016 medium-term earnings report released by New World Department yesterday showed that group income was HK $1 billion 934 million in the 6 months ended December 31, 2015, a decrease of 5.1% over the same period last year.

The net profit during the reporting period decreased by 71% to HK $59 million 810 thousand from HK $206 million in the middle of last year.

The core profits (excluding other net losses, fair value changes in investment properties and related income taxes and other non core items) decreased by 36.2% to HK $124 million during the same period last year, compared with HK $195 million in the same period last year.

The new world department store in Hong Kong has always been the marketing vane of the department stores in the mainland, but under the double downturn of the retail market and industry, the new world department store, which is changing and wandering, is also somewhat powerless.

The disunity and conservative management style seem to be one of the important reasons for the sluggish performance of the new world department store.

According to the insiders, there are big differences in the changes of department stores in the new world department store. Some of them are sticking to the existing interests, thinking or general merchandise mode, while others want to increase experience and add more fresh elements, but exploration will inevitably result in loss of interests.

In addition, the new world department store was relatively slow in the early stage of change, although since last year, some stores have increased the proportion of catering and experience formats, but the overall style of department stores is still conservative.

On the other hand,

Slowing down, changing consumption patterns and the rising operating costs of the group make the business environment of the entity retailing difficult.

To cope with the current situation, the group optimizes operation and reconstructs management framework to improve operational efficiency; on the other hand, it controls cost strictly, closes Beijing fashion new world department store (Beijing fashion shop), and reduces the rents of several principal associations.

On the Internet side, the group complies with the development trend of O2O, such as the first O2O experience store in Hongkong new world store with women's clothing brand.