Parkson'S Losses In The First Half Of The Year Increased By More Than 100%

Entering China for 22 years, it has the name of "the first shop of foreign capital".

The group (hereinafter referred to as "Parkson") has not been able to effectively stop its losses in the past two years.

Parkson recently issued a profit warning, which is expected to increase by more than 100% in the first half of this year compared with the same period last year.

By the electricity supplier,

With the impact of other local department stores, Parkson has been in the most difficult period since its entry into China.

Broken arm is difficult to guarantee performance

Parkson's performance began to decline in 2007 and has not yet been seen.

In the first quarter of this year, Parkson group narrowed its losses to 17 million 792 thousand yuan, a loss of 27 million 329 thousand yuan in the same period last year.

Turnover fell 13.39% to 4 billion 670 million yuan, and gross margin was 16%.

But this good trend has not lasted.

Parkson's medium-term loss is more than double the same period last year.

Parkson is a tradition.

The representative enterprises in the era of business disruption have not effectively helped them out of their low performance in recent years.

Beijing Business Daily reporter survey found that since 2012, Parkson has shut down at least 8 inefficient stores to save themselves.

After closing stores in Guiyang, Shijiazhuang, Beijing and other places, in March this year, Chongqing's Daping Baisheng store was operated for about 20 years. Subsequently, Baisheng, Xi'an's East Street, opened shop for 22 years, and announced that it was closed down in June.

According to its official website data, at present, Parkson has 56 stores in the country.

There are only 3 stores in Beijing: Fuxing gate, Chang Ying and Sun Palace.

Multi format layout is not effective.

Baisheng, whose performance has continued to slide, has begun to pform.

Since 2012, Parkson has changed its business strategy through "electric shock", developing catering business, and entering the fashion life Plaza market. However, from the earnings reports in recent years, it seems that no breakthrough has been found.

But in Parkson's official website, there is only one brand in the online ladies' luggage category, and there are only two brands in women's clothing category.

Parkson is also trying to retain customers through the development of catering business.

Last year, Parkson announced the signing of four exclusive franchise agreements with the Malaysia catering brand AUM through a wholly owned Affiliated Companies Baisheng Commercial Co., Ltd., and launched a series of catering brands in China. The brands signed include the French casual restaurant Franco, the American restaurant JohnnyRockets, the cafe TheLibraryCoffeeBar and the sandwich restaurant Quiznos.

This year, Parkson continues to seek breakthroughs in expanding its format.

In June this year, Baisheng's first large fashion life experience center, Qingdao Golden Lion Plaza, was opened as a major effort in the pformation of Parkson.

Parkson has introduced TOUS, an internationally renowned brand, and has established its own brands such as ZIEZAC and Serena.

Department stores need to rely on their own development.

Parkson blamed the loss on consumption in mainland China, but the reason is not so simple.

In recent years, the rise of electricity suppliers and shopping centers has made a strong impact on the department store industry, and the department store industry is still hard to survive.

Guo Zengli, director of China shopping center industry information center, believes that compared with foreign supermarkets, Parkson and other foreign department stores are under great pressure.

"Consumption culture everywhere is still an important reason for restricting the development of foreign department stores and even China's chain stores to the whole country.

The regional characteristics of China's department stores are obvious. Foreign department stores and chain stores in China have no obvious advantages in competition with local department stores when they enter different provinces and cities. "

Guo Zengli said that the major department stores are gradually increasing the proportion of proprietary brands and unique goods, and further optimizing the special products, adjusting according to the changes in consumption behavior.

This will attract consumers in a certain category or region and cultivate core competitiveness.

Parkson's drop in performance also seems to be inextricably linked to the flow of foreign capital.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, said that the reaction of foreign department stores is not very sharp. Most foreign businesses need to wait for headquarters' opinions. However, under different circumstances such as distance, culture, life and consumption, the headquarters' ignorance of Chinese business culture and consumer psychology leads to a final strategy decision that can not match 100%.

However, Guo Zengli believes that department stores will not die.

"The day when risk is shifted to suppliers is over, but the era of self-reliance has arrived."