The Stagnant Situation Of Department Stores Is No Longer New.

In Messi

(Macy's) after publishing the worst quarterly sales performance, its competitor Kohl'sCo. (Cole's department store) and the high-end chain store NordstromInc. (Nodes Tron) have also seen a sharp decline in the profits of their existing stores, and sales have dropped significantly.

In the first quarter, Kohl's and Nordstrom relied on a big sale to clear up unsold goods.

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In May 12th, Nordstrom announced quarterly results. The company's first quarter profit was $46 million, much lower than the US $128 million in the same period last year. Total sales increased 2.5% to $3 billion 200 million, but same store sales fell 1.7%.

This is the first decline in sales of Nordstrom's existing stores since 2009, and has lowered its financial forecast.

MikeKoppel, chief financial officer of the company, said he expects sales trends to remain uncertain this year.

In the first quarter of April 30th, Kohl's realized a profit of 17 million US dollars, far less than US $127 million in the same period last year. Sales fell 3.7% to US $3 billion 970 million, while same store sales fell 3.9%.

Kohl'sCEO, chain corporation, said the chain corporation, which owns 1100 stores, is still trying to understand the following facts: how much of the recent decline in passenger traffic is related to the problems he can solve through adjusting inventory and marketing, and how much of it is related to changes in the economic situation or consumer habits of consumers.

However, analysts quoted by Dow Jones said that Amazon, which is expanding its clothing and fashion sector, is taking away a large share of the market from traditional department stores.

In a research report published in May 12th, analysts estimate that Amazon has accounted for about 7% of the total apparel market in the United States, and this proportion will reach 19% by 2020.

According to their estimates, Amazon's clothing sales have exceeded all American retailers except WAL-MART, the largest retailer.

Both Kohl's and Messi have taken steps to compete with Amazon.

The two department stores closed their poorer stores, spending more on upgrading their websites and offering multiple options to allow consumers to order goods online and pick up goods at local stores.

Online sales account for Nordstrom, which has reached 1/5, and will invest 1/3's capital expenditure in the field of technology.

In a conference call, komper said that the business model of Nordstrom is changing, the proportion of e-commerce is increasing, and the flow of shopping malls continues to decline.

When traditional retailers are struggling, sales discount is known.

The chain stores are expanding their market share.

The same store sales of Nordstrom's discount chain NordstromRack grew by 4.6% over the same period, but most of the increments came from online orders.

In fact, the stagnant situation of department stores is not new in China.

At the beginning of May, the operation of major chain department stores in 2015 released by China Chain Operation Association showed that 31 of the 49 department stores listed companies had negative growth in sales growth rate.

Like the United States, the development of O2O department stores should respond to the consensus of the electricity supplier.

According to the survey conducted by the China Department Store Association and the Li Feng Research Center, more than 55% of the department stores have launched e-commerce business, as many as 94.5% of department stores have laid WiFi in stores, 80% have opened two-dimensional codes, and 42% of the surveyed department stores have self built mobile phone App. Through this, promotional information push and merchandise sales have been provided, providing additional services such as indoor shopping guide, restaurant booking and so on. 48% of the department stores have already set foot in O2O, and 79.6% of the enterprises have introduced mobile payment tools.