Lafayette Department Stores Pressure On Growth In China

Geomancy turns and loses the mainland.

Of

But now the chips for growth are in China.

Paris's Lafayette department store hopes to expand its business overseas in the next three years to speed up the opening of new stores in China and the Middle East, and will open new outlets for Chinese tourists.

In the first half of this year, the revenue and passenger volume of the Department Store declined.

According to its first half results, in the first 6 months, the income of the group fell by 5.9% to 1 billion 600 million euros.

NicolasHouz Osman, chief executive officer of the Department Store Department, said the decline in revenue was mainly caused by the double drop of international tourists and sales in Paris flagship store.

International tourists account for 50% of the flagship stores, while mainland tourists, Taiwan tourists and American tourists account for the highest proportion.

In addition to international tourists, Lord Buddha is also "desolate" by local consumers.

NicolasHouz said the group has 57 French department stores and 4 LeBHVMarais stores in France. The number of international tourists dropped by 15% in the first half of this year due to terrorist attacks.

The negative trend of summer performance is more obvious. In addition to the 20% drop in expenses of international tourists, the consumption of French local consumers in the Department of general Lafayette has been negative growth since August.

To enhance its performance, NicolasHouz e revealed that the old Buddha's group will reshape its flagship store.

These include the opening of a regional tourism group to China to enhance the quality of service and the shopping experience of Chinese tourists.

The reporter understands that at present, the department store has built a more subtle entrance for Asian tourists. Next year, the group will open a new branch store near the flagship store, which is for tourists group shopping.

NicolasHouz also revealed that the department store is now consulting with local partners in China and the Middle East, and plans to add 5 old Buddha stores in the two markets in the next 3 years.

The mainland market, which once frustrated the Department of general Lafayette, has gradually become the blessed land of Lord Buddha.

In the first half of this year, Beijing's Lafayette department store got rid of losses after two and a half years of business and ushered in a profit period.

In June of this year, sales of Beijing's Lafayette department increased by 13% compared with last year, and passenger traffic grew by 29% over the same period last year, while sales in the second quarter increased by 20%.

The department stores are constantly being subjected to electricity suppliers.

In the mainland market, the growth of Lafayette department store has been increasing. Bai Pengwei, President of China region, believes that strong growth is the positive effect brought by group expansion of diversified products and adjustment of brand portfolio.

At present, the Department of Lafayette is expanding its life art and sportswear area. The focus of the pformation is on the ground floor and the four floor. The elimination part is no longer popular with consumers, and it introduces new brands that meet the needs of consumers.

The upgrading of the four tier area has been completed, and the upgrading of the underground one is also in progress.

However, Lai Yang, Secretary General of the Beijing Institute of business economics, said that the increase in the performance of Beijing's Lafayette department store was caused by the very low performance base of the previous two years.

"In the past two years, the performance base of Lafayette department is low, and this year's performance has even risen, and its overall level is not comparable to the major department stores and shopping centers in Beijing", he said.

In addition, as for the practice of Lord Buddha's expansion of the Chinese market, Lai said that it is feasible for France to make the profit point in China, but if the traditional department store is still expanding in China, it will be difficult to develop.

"The decline in performance is a common problem in global department stores. The department store industry is in recession, and China's department stores are no exception."

According to Lai, compared with traditional department stores, Lord Buddha should make a strategic pformation to lifestyle.