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    How Can Chongqing Stores Face The Tide Of Shutting Down Shops?

    2016/8/26 12:53:00 55

    Department StoresShopping CentersClosing Shop Tides

     Chongqing department store

    Chongqing closed 6 stores last year.

    Department store

    In the face of declining performance, how can we turn the tide?

    A few days ago, the Chongqing department store Limited by Share Ltd (hereinafter referred to as Chongqing department store) issued a semi annual report. The bulletin showed that the company's half yearly operating income was 18 billion 133 million yuan, a decrease of 6.78% compared with the same period last year, and the average operating revenue growth rate of the retail industry was 14.83%. The company's revenue in the quarter decreased by 25.41% compared with the previous quarter, and the 48.70% of the 2016 budget was completed. The net profit attributable to shareholders of the listed company was 382 million yuan, down 8.97% from the same period last year.

    The total profit reached 465 million yuan, down 8.50% from the same period last year, and completed 96.08% of the 2016 budget.

    According to the format, in the first half of the year, the sales revenue of Chongqing department store was 6 billion 890 million yuan, due to online shopping.

    Shopping Mall

    Competition diverted, passenger flow decreased, sales revenue decreased by 5.50% compared with the same period of last year, the operating income of supermarket industry was 49.42, an increase of 1.54% compared with the previous year; the operating income of electrical industry was 2 billion 900 million yuan, 12.74% less than that of last year.

    According to public information, Chongqing department store was established in 1950. It was the first department store in Southwest China. It was listed in 1996. In 2005, it was pferred through equity pfer and administrative gratuitous. It became a holding subsidiary of the business group and completed the reform of equity division in May 2006.

    By the end of June 30, 2016, there were 283 comprehensive outlets of Chongqing department store in the same physical body, including 54 department stores, 150 supermarkets, 31 electrical appliances, 45 auto trade, and 3 others.

    Compared with 2015, the number of business outlets has decreased by nearly 50.

    The company's outlets have radiated the main urban areas of Chongqing, becoming the largest commercial enterprise in Chongqing, with the largest scale and the largest scale of operation. The scale advantages have been preliminarily formed in Chongqing and the surrounding areas, and have certain control over the local market.

    Chongqing department store closed 6 stores in 2015, all in Chongqing, 2 of which are electrical appliances and 4 are supermarkets.

    For the reasons for closure, Chongqing department stores said 4 of them were business adjustment and 2 were leasing expires.

    According to the plan of Chongqing department store, in 2016, it will close 10 stores that have no hope or lease expires, including 3 general merchandise stores, 1 electrical appliances and 6 supermarkets. Apart from a 100 Zunyi Hongkong road supermarket, the remaining closed stores are in Chongqing.

    Chongqing department store

    Closing shop tide

    To a large extent, it is related to the slow growth trend of China's general merchandise industry in recent years.

    According to the statistics of China's general merchandise business associations, the total profit in 2015 was 4 billion 614 million yuan, down 12.05% from 2014, and the profit margin was 1.05%, which also dropped 19.53% compared to the same period last year.

    Rising property rents, rising labor costs and huge investment in pformation are considered to be the main reasons for the heavy pressure on the department stores. Meanwhile, in the survey of the Chinese general merchandise business association, 52.8% of the enterprises intend to get involved in multi format operation.

    Insiders pointed out that, due to the all-weather, low cost and full coverage advantage of the electricity business, with the rapid solution of the problem of offline distribution and online payment, the department store industry had a strong challenge.

    In the face of the downward trend of industry, Chongqing department store also tried to integrate high-quality resources and enrich the format to ensure that the performance of enterprises can enter the track of healthy development.

    Chongqing department store is actively distributing electricity supplier + financial new business format, including "century purchase" online shopping mall and "century SHOW" bonded port experience shop. Factoring company develops financial derivative services around the supply chain of the company; immediately consumptive on-line App in November, launches employee loan and commodity loan products, and realizes the combination of traditional retail and modern Internet finance.

    Some analysts believe that, taking into account the increasingly mature cross-border trade in Chongqing, the impact of the Chongqing free trade zone and the concept of the overall listing of Chongqing business associations, "although the performance of Chongqing department stores has declined, many investment institutions will still intervene in the expectations of Chongqing department store."

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