Qingdao Sunshine Department Store Will Be Closed

In July 28th, located in the most prosperous commercial area of Qingdao, Qingdao on Hongkong road.

Posted a notice that the company will officially suspend business in August 28, 2016, causing concern in the industry.

Previously, the Shanghai Pacific department store, located in Huaihai store, was also faced with the choice of closing stores due to its operational difficulties.

Insiders pointed out that the great leap forward of commercial real estate

Flooding is the most direct and serious impact on traditional department stores. China's department stores are faced with the need for upgrading and pformation, but department stores will never be replaced or disappeared.

Sunshine Department Store is a famous high-end department store in Qingdao. It opened in 2003 and has an area of 3 square meters.

It is the first batch of "Jinding department store" of the Ministry of Commerce.

Sunshine department store has been a weather vane for high-end consumption in Qingdao for many years, and many Qingdao consumers have been proud to shop in this shopping mall.

It is said that in the glorious period, the price of a hairpin in sunshine department store was as high as 3000 yuan.

"We are actively adjusting to adapt to the new situation."

Luan Lei, general manager of Sunshine Department, told the China Commercial Daily reporter that the closure of sunshine department stores is not a permanent closure, but upgrading and pformation, and it will open again in the future.

She said that now the entire market demand and format have changed, the department store format needs to be adjusted, the shopping mall has been open for 13 years, both hardware facilities and business formats need to be reformed and adjusted as a whole.

However, Luan Lei frankly, at present, the specific direction of the company's future adjustment and pformation has not yet been determined.

"At present, the density of commercial projects in Qingdao is too high, and at present, the consumption level of Qingdao is hard to support too high-end consumption."

A middle management who worked in sunshine department store told the China Commercial Daily reporter that in recent years, the commercial facilities in Qingdao have increased rapidly, but the population in Qingdao is not large. There is still a big gap between the consumption level and the passenger flow, compared with that in the north.

The closure of Sunshine Department is a pity for many consumers in Qingdao, but it is not a very shocking news from a nationwide perspective. Sunshine department store is not the first department store that is closed, nor is it the last high-end department store.

In recent years, the department store industry has fallen from the height of the scenery.

According to statistics from the Internet of things, 114 stores were closed in 2015, including Baisheng department store, Wanda Department store, NOVO department store, far east department store and many other famous department stores.

Parkson has closed 11 stores in mainland China in the past 4 years, closing two stores this year, 46 stores in Wanda Department Store in 2015, and NOVO department store, a China fashion department store, closed 5 stores last year.

Wang Wei, executive director of Ding Shi, told China Business Daily reporters that the flood of China's commercial real estate shopping center caused the most direct and serious impact on traditional department stores. China's department stores are facing the need of upgrading and pformation, but the department store format will never be replaced or disappeared.

Wang Wei thinks that the way of operation of Chinese department stores seems to be similar to the form of foreign department stores, but the domestic department stores mainly implement the joint venture system, like the two landlord who receives the rent from the bottom and the deduction point. In essence, it is more like a quasi material center.

But as a quasi shopping center, the advantage of department stores in space superiority and retail operation is not comparable with that of shopping centers.

In recent years, the unlimited expansion of shopping centers in China has brought disastrous impact on department stores, which is the main reason for the closure of department stores.

He said that the local government was planning in disorder and opened too many shopping centers in the traditional central blocks, which is unthinkable in Europe and other places.

The disorder of planning and the spread of shopping centers not only bring unprecedented pressure to the operation of the department stores, but also bring huge competition pressure to the Chinese shopping centers themselves.