Pacific Department Store Will Be Closed And Bobbi Building Vacant! How To Save Huaihailu Road?

Time flies, light and shadow are mottled. In the 30s of last century, Shanghai's Xia Fei Road is a road full of French style. It is called Shanghai city.

The source is famous for its famous shops.

After that, Huaihailu Road became a well known commercial street. At that time, commerce was also flourishing.

However, with the

The desolate industry, the rise of new business and the impact of electric business, Huaihailu Road is now slightly depressed.

Recently, a number of interviews showed that the Pacific department store, which has been in Huaihailu Road for more than ten years, is closed at the end of this year or early next year after the evacuation and closure of BMW and so on. The Bobbi building, which has been shut down for several years, is still vacant, and the sunshine 527 shopping mall is only about a year away from its opening.

Difficulties, shops are scarce...

Many businessmen have reflected that the fierce competition, the loss of tourist resources and the embarrassment of old department stores have led to the commercial desolation in Huaihailu Road.

Pictured: Pacific department store Huaihailu Road discount scene

Huaihailu Road Pacific lease expires

There are few people in the mall, and a large number of clothing, shoes and hats and cosmetics counters are placed with 80 percent off to 50 percent off promotions.

This is a scene seen by the first financial reporter in the Pacific department store in Huaihailu Road, Shanghai.

"Our discount activities will last until the end of this year, because by the end of this year, the lease of the Pacific department store has almost expired, and the news we get now is that it should be closed."

A member of the Pacific department store in Huaihailu Road admitted.

After asking many shop assistants, he got the same view that the discount will continue from the present till the end of the year, but the Huaihailu Road Pacific department store is no longer in stock at the beginning of the year, but it will gradually clear the goods in the store through the promotion of the next few months.

If the Huaihailu Road Pacific is closing around the beginning of next year, what format will it take?

"It is said that the owner should turn the property into a business building after the lease expires, probably because the rent of the department store is too low, and the rental of the business building is much higher.

And the Pacific store Huaihailu Road store has been in operation for more than 10 years. The rent of that year is relatively low, and the rent has already doubled. Once the contract expires, the owner must choose the higher rent format.

A staff member of the Pacific Huaihailu Road shop revealed.

Pictured: Pacific department store Huaihailu Road shop

According to the Pacific department store, it said that the Shanghai Pacific Department Store Huaihai store opened in 1997 and has 20 years' lease with the Ruian group, which is due to expire in 2017.

After careful assessment of the changes and future development of the site business, considering the retail operation and so on, it is expected that the Huaihai store will be pferred to other locations in Shanghai after the expiry of the lease.

At present, there are three stores in Shanghai Pacific department store. Among them, "Xuhui store" enriches diversified restaurants, increases the proportion to meet customers' needs, and strengthens popular commodity brands and online experience interaction, actively adjusts the structure and changes the marketing practices of traditional department stores. "No night city store" has entered opportunities by surrounding new office buildings, has completed the adjustment of new business models, increased fitness centers, convenient supermarkets and many other new formats, and provided more and better products and services for consumers.

At present, Pacific department stores have about 9 stores in mainland China.

Pictured: Pacific department store Huaihailu Road discount scene

This is not the embarrassment of Pacific department store's first encounter with the lease.

In 2011, Beijing Pacific department store and the Wukesong store closed, which equates to the withdrawal of Pacific Department Store from the Beijing market.

At that time, the Pacific department store said that the closure of the two stores was related to the owners.

PCCP is mainly due to the expiration of the lease, and the rent is too high to cause further cooperation.

Beijing's Wukesong shop, which was founded in 2009, has not yet reached the profit period. However, due to frequent changes in the owners and investment delays, the Pacific side decided to end the store.

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Compared with two stores in Beijing, the Pacific Huaihailu Road store has a long history. It is also accompanied by the growth of a generation of Shanghai people, full of memories.

Many consumers feel regrettable about the closure of the store.

The picture shows: the Bobbi building, which is vacant all the year round.

Embarrassment in Huaihailu Road

In fact, not only is the Pacific Department Store facing embarrassment, there are problems in Huaihailu Road business circle.

About a year ago, in Huaihailu Road, more than 10 shops closed or adjusted in just a few kilometres.

Even before the closure of the 100th goods after the pformation of the operation of the BMW exhibition shop quietly closed, a large number of empty shops difficult to inviting business.

After a year's visit to the same section of the road, it was discovered that although some shops were renovated, mostly jewelry and watches, there were still some vacant properties, especially the Bobbi flagship store, which had been closed several years ago.

The BMW showcase is still unoccupied.

A few years ago, as an iconic business item in the Huaihailu Road commercial circle, the property was reopened several times and shut down.

However, after the exit of best buy from China, the building was once idle until the sun Xinye group settled in, making the property a sunshine 527 project.

In July 7th, in the sunshine 527 shopping mall, most floors were empty, few shops opened and the traffic was very small.

The staff in the shopping mall revealed that the project has been open for about a year. Due to the lack of passenger flow, a number of shops in the shopping mall have been evacuated and new shops are difficult to recruit.

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Behind the predicament

The dilemma facing Pacific department store, Bobbi building, sunshine 527 and even Huaihailu Road is a microcosm of the retail industry.

According to the statistics of China's general merchandise business association, the sales volume of 80 member enterprises increased by 9.3% in 2015, but the profit rate dropped by 19.53%.

"Closed shop tide" is still continuing. According to the statistics of the Internet of things, in 2015, 114 stores were closed in 2015, including: Martha department store, Baisheng department store, far east department store, and many famous department stores.

"First of all, it is the department store, which has a large area and lacks sense of experience.

Huaihailu Road Pacific department store is very old, some facilities are aging, it is very difficult to make shopping center experience here.

BMW and sunshine 527 projects are also difficult to attract investment because of the embarrassing area of the store, the small shop is too big, and a feeling of shopping center is not enough, so many businesses are not willing to enter.

RET Durbin, director of Business Services Department, said.

Secondly, the project of Bobbi building has certain particularity.

From close quarters, it is learned that when catering industry is difficult to recruit, the catering industry is the biggest business opportunity for the project. Unfortunately, there are residential areas near the property, and there is a pollution problem in the catering industry. It is difficult to obtain the relevant license, resulting in the vacancy up to now.

Why is investment so difficult?

"Now more brands are willing to make flagship stores independently, such as UNIQLO, GAP and so on, while the clothing brands willing to enter the mall also prefer the large experiential shopping mall with more than 100 thousand square meters.

Because shopping centers are relatively popular, brands have business.

The Bobbi building project, which is awkward and even difficult to obtain food and beverage licences, is not loved by brands.

In the vicinity of those old shopping malls in Huaihailu Road, the rise of K11 such special shopping centers has intensified competition, shunting the source of tourists, and the impact of electricity suppliers, which has resulted in a shortage of passenger traffic in old projects, and shops are reluctant to enter.

Durbin pointed out that in the final analysis, consumer habits have undergone a fundamental change. People are now more willing to shop online or go shopping centers, resulting in lack of people in department stores and medium-sized shopping malls.

Business in Huaihailu Road is getting worse and worse.

"The price of many clothes in our shop is over 500 yuan, and the unit price is not low. The turnover of a day is much lower than that of 20 thousand yuan, and the passenger flow is too small.

The rent is very high. If it is not for the subsidy of the head office, the store will not support it at all.

A clothing store in Huaihailu Road said helplessly.

According to some people who have been engaged in investment promotion for a long time, under normal circumstances, the Huaihailu Road store rents are 30 yuan ~50 yuan per square meter per day, and the advantage bunk rents can reach 80 yuan ~90 per square meter per day.

"There are only a few high margin formats, such as jewelry, watches or wedding photography, which have the financial strength to layout the stores along the street in Huaihailu Road, but these formats are not very popular.

It is not easy for Huaihailu Road to break through the bottleneck. "

Senior retail expert Ding Haozhou analyzed.