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    The Decline Of Department Stores Is No Longer A Problem That Can Be Solved By Shops.

    2016/5/2 16:16:00 35

    Department StoresStoresMarket Conditions

    J.C. Penney and Sears need to close 320 and 300 stores, which account for 31% of the total number of stores in the United States and 43%.

    Macy s, which has reported many redundancies and closes, also needs to close about 70 stores.

    In the middle and high-end line, Nordstrom has to cut 25% of its stores, that is, 30, to return to 2006.

    Compared to 10 years ago, whether in China or around the world, the environment of department stores has changed dramatically, and the whole retail industry is more complicated than before.

    So the calculation result of Green Street Advisor does reflect the dilemma faced by the department stores from another angle, but it certainly should not become a guide for the department store.

    Citing a survey by Green Street Advisor, a commercial real estate research firm, the annual effect of us department stores was 165 US dollars per square foot, a decrease of 24% over 2006.

    But within the next ten years,

    Department store

    The area is reduced to 7%.

    Green Street Advisor believes that excluding inflation, if we want to return to 2006, we need to shut down about 80000 stores, including Macy, s, Sears, J.C. Penney and Nordstrom, which will reduce the existing area by 1/5.

    J.C. Penney and Sears need to close 320 and 300 stores, which account for 31% of the total number of stores in the United States and 43%.

    Macy s, which has reported many redundancies and closes, also needs to close about 70 stores.

    In the middle and high-end line, Nordstrom has to cut 25% of its stores, that is, 30, to return to 2006.

    In fact, J.C. Penney closed 7 stores.

    Sears

    It announced that it would close 78 stores before summer; Macy 's closed 40 stores last year.

    They shut down much slower than the decline in revenue.

    But is closing down the best way to deal with it? In an interview, J.C. Penney's CFO said: "people have a misunderstanding that people will turn to us after they have closed the store.

    Online retailers

    But the fact is that when the entity store is closed, the electricity supplier business will also get worse.

    This is especially evident in small markets. "

    A spokesman for Nordstrom said that all of their shops were profitable, and closing shops were not the usual ones.

    In addition to closing stores, they also took other measures to save the declining trend.

    Macy 's launched the discount store Backstage in September last year.

    In order to attract tourists, it also opened a high-end beauty shop Bluemercury in its original department store.

    But the overall situation is still very pessimistic.

    In China, where the electricity supplier is developing more rapidly, the performance of traditional department stores is also very low.

    According to a sample survey of 80 general merchandise stores in the country, the department stores in 2015 accounted for nearly 37 of the total sales.

    At the beginning of last year, Wanda announced that it had to close or reorganize 30 stores, and according to unconfirmed public data, it closed 56 stores last year.

    According to Parkson financial report, it closed 3 stores last year.

    But on the other hand, there are more shopping centers in the Chinese market.

    According to Reuters's joint research report by China Retail Association and DDT, in 2015, China's new department stores and shopping centers reached around 4000.


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