Under The Impact Of The Electricity Supplier, The Department Store Encountered 56 Stores In Waterloo.

Walking on the Huaihai Road on the bustling commercial street in Shanghai, you can see that there are long queues at the entrance of Harbin food such "time-honored" food stores, and in the nearby iapm shopping center there is also a crowd of people.

"Now consumers are very concerned about food and entertainment. Only the department store business is very poor. Our employees are very busy because they keep writing reports and meetings to discuss how to improve their performance and analyze the reasons for their decline."

Zhang Yong, who worked in the department store for more than 10 years, said wearily.

In the past year, department stores have been running poorly.

Reporters recently learned from many surveys and interviews and learned that the cost is high.

Below, department stores' performance has suffered a lot of "Waterloo". Consumers now pay more attention to the shopping mall with experience, or simply "small and beautiful" convenience business.

It is difficult for the department store to pform itself, such as the area, the lease term, the bottleneck of pformation, and so on.

However, the difficulty of controlling joint points and pricing power makes the department store have no price advantage.

According to RET Rui Yide, a Chinese professional commercial real estate service provider, more than half of the department stores last year closed faster than shops.

Light closed 56 stores in 2015.

And "add insult to injury" is that the department store closing tide has arrived. The partners brand has adjusted its sales channels for various reasons. Many brands including LV, such as "big family", are now big contraction strategies, which makes it harder for general merchandise merchants to invest.

Turn it off!

If we want to catch consumers, we need to understand what consumers need.

According to Nielsen retail property report in 2015, consumers are still the most powerful consumers after 80 and 70, but the frequency of shopping is relatively low, especially after the 1980s.

This group of people pays great attention to experiential consumption, especially the "accompanying consumption format". 40% of consumers will spend other consumption in the process of children's play or training, and the consumption of food and supermarket is the two most important form of consumption.

In addition, the consumption of major consumer groups has continued to rise over the past few years, and the planned annual cost per person in 2015 will reach 841 yuan.

In short, entertainment experience, catering and other formats are very important for real business.

Unfortunately, this is precisely the case.

Lacking.

In the interview, the reporter learned that, with the above-mentioned reports, cinema, catering and children's experience formats are the main force to drive the real business nowadays. However, the department stores usually only sell clothes, homes, cosmetics, etc., and hardly involve cinemas, restaurants and children's amusement.

This causes consumers to have a different impression of department stores and shopping malls.

"Nielsen retail property industry report 2015" pointed out that most consumers believe that shopping centers, besides shopping, also have various forms of catering, entertainment, and so on, which can satisfy one-stop leisure needs, while department stores simply shop and have few or few other formats. Shopping centers have large cards and relatively high grades, while there are many unknown brands in department stores, and few brands are chosen, and counters are gathered, feeling crowded and messy.

With all kinds of rising costs and the impact of electricity suppliers, it is hard for physical retailers to put pressure on them.

For example, Parkson Retail Group Ltd's 2015 annual performance report shows that in 2015, its sales volume was 18 billion 99 million 800 thousand yuan, down 6.9% from the same period last year; sales in the same store decreased by 8%; total operating income was 4 billion 739 million yuan, down 5.5% compared with the same period last year; gross margin of goods was 16.8%, decreased by 0.7%; in 2015, the operating loss was 94 million 500 thousand yuan, and the overall loss was as high as 183 million yuan, a decrease of 174.3%% compared with the same period last year.

Xinhua's 2015 annual performance bulletin showed that in 2015, the company achieved a total revenue of 6 billion 487 million 710 thousand yuan, down 7.56% from the same period last year, and net profit loss of 387 million yuan, a 1155.70% decline over the same period last year.

The new world department store issued a notice that the net profit in the second half of 2015 was only HK $59 million 810 thousand, down 70.96% compared to the same period last year.

The department stores are working hard to stop their losses. In the spring of Paris, the new giant slide of Pujian Road store in Shanghai is just to drive people's flow. Zheng Yutong sold 33 billion 900 million new world's 2 items and sold 33 billion 900 million yuan to Hengda in one month last year, and Changzhou Maoye general store simply changed to Ortles.

In all ways, closing shop is the most direct and widely adopted way, especially last year.

According to the statistics of the department stores in the first half of 2015, according to the brand of opening up, apart from 3 new stores opened in Wanda in the first half of the year, other department stores opened only one store, including Tianhong, Maoming, Yintai department store, Ginza mall, Denis, New Mart, 6 Chinese department stores, and 5 foreign department stores brands of Paris spring department store, big pill department store, American Messi department store, Xinguang Tiandi and Baisheng department store.

From the point of view of the customs store, there are 6 foreign-funded department stores, including Tianjin Jin Le Hui, Tianjin Far East department store, Tianjin Baisheng department store, Beijing Hua Tang shopping mall, Wuhan NOVO department store and Marsha general merchandise department.

In the past two years, department stores have been normal, and foreign department stores have been closed down in China stores, or even completely withdraw from the Chinese market, and become one of the trend of department stores.

In the first half of 2015, the main retail enterprises (including department stores and supermarkets) closed a total of 120 stores in the country in the first half of 2015.

Department stores closed 25, of which 10 were Wanda Department stores, 5 were Marsha's department stores, 3 were closed by Tianhong mall, 2 were closed by golden eagle, and 1 were from far east department store, sunshine department store, Baisheng department store, halls shopping mall, and Jinle department store.

Public data show that last year 1~8 months, Wangfujing department store 5 stores, Marsha general store closed 5, Shang Tai Department Store 1 stores, Hua Tang department store 5 stores, Tianhong Department store closed 5, Jinying department store 2 stores.

RET Rui Yide statistics show that in May 2015, Parkson quit Baoding, November 2015, Parkson Zhengzhou the Mixc shop.

Prior to that, Parkson has closed 5 stores in Ji'nan, Changzhou, Beijing and Tianjin.

Tianhong mall closed 5 stores in half a year, and Wanda reached 56 stores in 2015.

Injury and weakness

Since the industry has seen the problem, why can we only choose to close shop and solve the problem?

First of all, the department stores are swarthy, and most of them are in the area of 30 thousand to 50 thousand square meters. The area is very embarrassing, because at present, the large-scale shopping mall or small shop is the direction. The shopping mall is usually over 100 thousand square meters, while the small shop is in thousands of square meters, and the area of the department store is not limited, which is congenital deficiency.

Another hard nut to crack is pformation, but in fact some of the department stores have begun to introduce some dining experience, but the department stores themselves do not involve restaurants. Once the restaurants are introduced, they need to be rebuilt in the background system, sewage and drainage pipes. Some of the department stores have already died, and some of their structures can not be changed at all. Therefore, it is impossible to introduce restaurants. The same is true of the cinema. The fire regulations of the cinema are very special, and they also meet the requirements of the large screen height and the height of the seats.

RET Durbin, director of Business Services Department, said.

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Although some businesses overcome difficulties, for example,

Some restaurants and brands have been introduced into the stores in Xujiahui, Shanghai. But according to the reporter's observation, the restaurant business in general has not played a great role in promoting the flow of people.

"The reason is very simple. Now most shopping centers will adjust the proportion of restaurant investment. Before that, catering probably accounts for less than 20%. At present, it accounts for at least 30% or even 45%. That is to say, when dining in a shopping center, restaurant brand choices are very diverse, while going to department stores to eat, there are few brands and tastes.

Therefore, even though a few department stores open up restaurant business, it is still difficult to attract customers.

Durbin, who is investing in many shopping malls, knows his theory well.

In addition, the cost is another big injury.

Most of the department stores in China are leasing models, and few have self-contained property. With the advent of a large number of tenancies in recent years, rent has become a problem.

"You can only choose to either withdraw or accept the rents of rising prices. In 10 years, the rent has risen several times. In some popular gold areas, the rent may have increased by ten times. It is impossible for the department store operators to bear such a large rent base with such huge operating pressure."

Zhang Yong said frankly.

Manpower is another big increase year by year cost.

"Unlike the online store, a store needs someone to stand at the counter. According to past experience, a shopkeeper in a department store needs 6 salesmen, each of whom has 3 shifts, but now many counters have greatly reduced their staff in order to save costs. Many brand counters have been reduced to 3 salespersons in each counter.

This is also the helplessness of businessmen.

Zhang Yong told reporters.

If we say that "hard injury" is a congenital factor, the department store industry still has the "soft rib" caused by the day after tomorrow.

According to the press interview, the point of joint operation is always used by the department store, that is, the commodity is actually a brand dealer. After the sale, the brand and the department stores are divided into points.

Under such a mode, the introduction of brand to the department stores will be very homogeneous, because most of China's clothing and cosmetics are based on the regional agency system. In order to get a higher discount interest, the department stores must choose some hot brands to attract investment, which makes a large number of "niche" designer brands or personalized brands excluded, and entering the department stores are all stereotyped "popular brands".

Before the electricity supplier has yet to rise, people are willing to shop in department stores, but nowadays a large number of brands such as GAP, ONLY and so on have online stores, and many online stores are cheaper than 50% or even more than physical stores, so consumers turn to "online voting" with their feet.

The difficulty of pricing power

Under the joint point mode, the price of goods in department stores is not in the hands of the department stores, but in the hands of the brand merchants. In the past, the department stores are more powerful, the unpleasant cooperation brand merchants, the department stores will let the other side withdraw the cabinet.

However, this "bull" scene is now invisible, more and more brands have opened up the network sales channels, some brands of sales began to tilt to the network platform.

"We have official online stores, and there are counters in the physical stores. In recent years, the sales of our online stores are getting better and better. At present, the proportion of our network sales has reached about 15%, and it is estimated that it will rise in the future."

Clothing brand Taiping bird market public relations responsible person Xu Sisi told reporters.

"There are personnel, rent and inventory costs in the physical store, such as the brand of shoes, one of which has several colors, and each color has 5~6 sizes, which means that the physical stores need to store large quantities of stock in department stores. These are all costs.

Relatively speaking, the cost of operating online stores will be relatively low.

In addition, there is a hidden reason - the physical store is a brand, in order to retain the signs, the goods sold in the store are basically authentic, but some of the operators will sell inferior products in the network channels. The inferior products are not cottage products, and are also authorized by the manufacturers. However, there will be slight differences in the workmanship. If these goods are destroyed, they will be economic losses. If they are placed in the physical store, they will affect the brand, and the low price sales will make the brand profit.

Zhu Xiaoyun, who runs a shop in Taobao for a long time, told our reporter.

Many businessmen pointed out that there are many cottage goods on the line, which are cheap. Some consumers know that the goods are not authentic, but they will still buy online because of low prices, which diverts many passengers.

"In the final analysis, the department stores simply can not control the pricing power of goods. Once the price of online goods is lower than that of physical stores, consumers will naturally flow to the online market.

Once goods are in trouble, department stores are hard to control, and they can not manage the supply of goods. "

Durbin pointed out.

Then can't we hold the pricing power?

"If we adopt a proprietary mode or a buyer's system, we can have the pricing power to build our own brand and purchase our own goods directly.

However, in the Chinese market, the popularity of private brands is mostly low. The success of overseas famous brands such as Martha, high island stores and other international famous brands is because of their own brands. However, when they introduce a large number of private brands or personalized design cards into Chinese stores, they are not recognized by Chinese consumers because they lack public awareness.

Senior retail expert Ding Haozhou analyzed.

The same is true of the buying system. RET Rui Yide research shows that the very popular buying system in China has not been able to open up the situation. The buyer's shop has not been favored by most Chinese consumers because of its small number of products, its low brand reputation and high price.

Brand merchants shrink investment in department stores

Recently, even the LV shop has been unforeseen in the industry.

The Nielsen retail property industry report 2015 shows that in terms of luxury consumption, consumers in Beijing and Shanghai will choose overseas purchasing instead of local purchase. Chengdu consumers have more choices to purchase luxury goods, besides buying locally, they will also choose to buy or buy in other cities.

"Due to factors such as price differentials and visa loosening, more and more Chinese choose to buy or buy overseas. For example, Chinese tourists spent 80 billion yuan in Japan last year.

This means that more Chinese customers' high-end brands, and even some consumer brands, do not take place in the Chinese market.

This has caused a lot of high-end brands to be very upset. Their counters in Chinese department stores are quite advertised, and the actual consumption is mostly overseas.

Jia Jia, the founder of Jiaqi Tourism Organization, said frankly.

Under such circumstances, a large number of brands began to consider shrinking the offline counters and stores in the Chinese market.

"As far as I know, this year and next year, many brand stores in the department store will have a shrinking plan, that is, the appropriate withdrawal of a number of 100 stores, at least there will be no new shop plan, which will cause the already heavily damaged department store operators in the next 1~2 years will encounter investment difficulties, which will lead to further closure of department stores, and even the overall vacancy rate of commercial real estate projects may rise."

Zhang Yongru said.

Wang Tian, chairman of BBK, pointed out that according to the National Bureau of statistics, in the first 10 months of 2015, the construction area (including office buildings, business premises and other) of the non residential commodity housing, which had been completed but not rented or sold, has reached 250 million square meters, an increase of 25.1% over the same period in 2014, which is 1.74 times that of 2010.

In the first half of 2015, the stock of commercial property in China's 20 largest cities has exceeded 97 million square meters. By 2018, it is estimated that 61 million 460 thousand square meters of visible new supply will continue to open in the market, accounting for 63% of the existing stock.

This means that within three years, the stock market competition and the pressure of future supply will continue to rise in most cities in China.

In order to change the status quo, Wang Tian suggested that the real estate investment trusts should be launched as soon as possible to boost the de stocking of commercial real estate in China and push forward the reform of commercial real estate supply side in order to control the vacancy rate of commercial projects.

Durbin pointed out that when department stores are in a disadvantaged position, the most direct idea is to get rid of difficulties as soon as possible. If capital conditions and hardware pformation conditions permit, they can be appropriately expanded. For example, in early 2016, the Wangfujing proposed an increase of 3 billion for the construction and preparation of shopping centers in Harbin, Zhengzhou, Xi'an, Foshan, Nanchang and Yinchuan and the construction of O2O channels.

Or pform into a convenience store in the community.

Convenience stores are thriving in the Chinese retail industry, which is slowing down overall growth. More and more formats begin to embrace convenience stores.

In the first half of 2015, Tianhong opened 8 new micro convenience stores (7 in Shenzhen and 1 in Xiamen), while closing 3 stores.

Department stores can also be pformed into a specialty store with a dominant category or several related categories.

Messi department stores opened 5 discount stores in September 2015, and plans to open 50 discount stores in the next two years. While small department stores, such as name creation products and Sanford stores, focus on parity fashion positioning and expand rapidly.

"Of course, there is another move that is" one way or another ". The department stores also seek to extend the online pformation. As Yonghui takes the lead in Jingdong, Wanda joined hands with Tencent, Yintai and Suning have launched strategic cooperation with ALI. The online and offline accelerated integration mode of O2O has become the trend of the retail industry.

Du Binru said.