China'S Stores Continue To Suffer From Cold Snap

Announced that, due to the continuous loss of stores in mainland China, Marsha will close all 10 stores, but Marsha general store

and

The flagship store on the electronic business platform will continue to operate.

Survive with broken arms

After a comprehensive assessment of all 466 international shops, Martha announced the strategic assessment results in Greater China.

The assessment shows that Martha has made profits in the Hongkong market, while 10 shops in the mainland have been losing money.

Therefore, Martha plans to close all 10 shops in the mainland, and will negotiate with 441 staff in the mainland.

However, Marsha has not completely withdrawn from the mainland market.

The rapid development of e-commerce in the mainland has become the last straw in Martha's department. It is considered that online business is the best way to conduct business in the mainland. Mainland consumers can buy the products of Marsha brand through two main online platforms, Tmall and Jingdong.

As a matter of fact, Marsha general has not been convinced since its entry into the mainland market in 2008.

In 2014, Marsha's Department announced that 5 of the 15 outlets in the mainland market would be closed before 2015, with emphasis on the development of Shanghai.

At the end of 2015, Marsha general store finally entered the Beijing market, but this did not reverse the decline of Marsha's department in the mainland market.

While struggling in the mainland market, Marsha's performance in the international market is also not optimistic.

Last year, Martha's total business income in 10 markets was 171 million pounds, with a loss of 45 million pounds, some of which suffered losses in the past five years.

The results show that losses are caused by a number of factors, including the fragmented distribution and lack of scale of wholly owned shops.

Martha plans to close all 53 wholly owned shops in these 10 markets, including 10 in mainland China and 7 in France, and all shops in Hungary, Lithuania, Poland, Slovakia, Romania, Holland, Belgium and Estonia.

Reduction of direct Battalion

Looking ahead, Martha plans to reduce the market for wholly owned businesses, focusing on the development of existing joint ventures and franchising cooperation.

It is reported that Marsha has 268 franchises in the 34 markets and has established a joint venture in Greece and India.

Through collaboration with local partners, Marsha will continue to develop food franchise business in France to meet local demand for high quality and innovative products in convenient pportation shops.

In addition, Martha has launched online pactions in 21 markets, including fully localized proprietary and proprietary websites.

Such as the India electric giant Myntra and European fashion business Zalando to achieve franchise cooperation.

Despite extensive market closes in overseas markets, Marks & Spencer emphasizes that it will continue to implement the internationalization strategy and believe that it can create more sustainable, profitable and customer focused international businesses.

The winter of foreign department stores

In the mainland market, retail sales growth is slowing down, and traditional department stores are facing pformation. Foreign department stores may be the first to feel chill.

In the mainland market, Marsha is not the first foreign department store to close its stores.

Parkson, known as the "first department store of foreign capital stores", officially closed shop in November 1st.

In the closing of Wangjing and Beiyuan Road shops, the halls store also closed the ten mile Fort shop in Beijing.

According to the analysis of the insiders, the Martha department store in mainland China was affected by the simplification of American retail chains, which lost British characteristics and lost the essence of retailing. Moreover, Martha's department store did not adopt suitable products and marketing strategies in the mainland market, resulting in the decline of Martha's overall interest in the mainland.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, once said that the response of foreign department stores is not sharp enough, and most foreign-funded enterprises need to wait for headquarters' opinions.