Will Department Stores Disappear In 2016?

First quarter of this year

Store marketing is not optimistic, and the reports of the demise of stores are overwhelming.

The topic of whether or not department stores will disappear is mentioned again. Some people pour cold water on it, while others emphasize the importance of department stores.

along with

The rise of retail enterprises is facing a great impact.

Therefore, the operational difficulties of commercial real estate are constantly exposed.

However, in such a big environment, it has not stopped the pace of capital entry, and Pauli and Longhu developers have entered the commercial real estate sector.

However, in the overall downturn of the industry, the accession of new capital will eventually add to the situation of the commercial real estate, or open up a new prospect.

In the twinkling of an eye, half of 2016 has passed, and friends have been shaking their heads about the performance of department stores this year.

Not only ordinary projects in the area are struggling, but also the Department Store chiefs who occupy the core business circle of the city have to change to survive.

Speaking of extreme points, many department stores are facing a situation of not changing the dead end, but there is still a slight chance of improvement.

In recent years, the business market has changed dramatically, and the backgrounds and ideas of different department stores are different.

On the whole, the adjustment is conservative, which may also be one of the reasons why the department stores are changing and declining.

The Department Store pointed out that

Every day, the shop has been hit by department store ladies' clothing floors. In recent years, the clothing industry, including men's wear and children's wear, has shrunk by 50 billion yuan. Chain stores such as new Guang San Yue, SOGO, Yuan Bai and so on have already actively introduced catering and entertainment experience types, so as to cope with the fast fashion shock and separate the online shopping market. The proportion of promotion has ranged from 1 to 2, and the proportion of dining and entertainment in shopping centers is even as high as 50-60%.

According to the data of China chain operation association, since 2010, the turning point of physical stores has appeared, and retail enterprises have entered the interval of declining sales and declining profits.

From 2010 to 2014, the growth rate of chain 100 sales continued to decline, with annual sales growth of 21%, 12%, 10.8%, 9.9% and 5.1% respectively.

In 2014, the number of top 100 enterprises increased by 4.2%, of which 23 were more than the number of new shops, and the number of shops in 7 enterprises was unchanged from last year.

Department stores are in a panic. Executives of some of the largest chain corporation in the US are hard to explain why consumers do not spend more time and money in their stores.

While traditional retailers are struggling, the chain stores that sell famous brands are expanding their market share.

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.

The nightmare of the shop continues to be wrapped up in the halls. It is learned that the Daxing shop of the halls store will be closed in July 1st. After the 11 year old shop is closed, there will be only 4 remaining shops in the shop.

The change in the market did not follow the market, so that the Beijing Hua Tang shopping center was suffering from the downward trend of performance after 2008. In the past two years, the Beijing region has been constantly releasing negative signals.

The only restaurant with a upward trend in the halls shopping center may also face changes due to property owners.

Increased losses, Hua Tang mall in Beijing to countdown?

In the first quarter of 2016, for department stores, sales were not as good as most previous quarters.

In recent years, online shopping as a better alternative to physical shopping has become a more popular way of consumption. The new millennial generation is also more inclined to purchase products based on product experience rather than product itself, plus a discounted discount during the economic crisis, so that consumers can learn to find a more suitable shopping price (discount industry chain is therefore successful).

The drop in department store sales is a natural consequence of these combined factors.

The financial performance of department stores has been in the doldrums for several years.

There are many possible factors, including the rise of online shopping and electric business, the preference for post-90s consumption experience rather than product itself, and the preferential policies in the economic downturn, which make consumers more dependent on discount products.

According to Green Street Advisors, a consultancy, the United States needs to close 800 stores, or 20% of the total, to allow the department store industry to go from oversaturation to a healthy state.