Martha Withdrew From China: Limited Profits Can Hardly Support The Market.

On the eve of the "double eleven" Carnival promotion, according to Reuters, Marsha general store announced on November 8th evening that it would close all the remaining 10 stores in the mainland of China.

Beijing Baisheng shopping mall Sun Palace store, the Ten Mile Shop in the halls store is officially closed for less than 10 days. The British department store giant, Marsha general store, announced in November 8th that it closed all 10 entity shops in mainland China.

Beijing Youth Daily reporter survey found that Marsha has moved to Tmall, Jingdong two online sales platform.

But marketing experts point out that the profit from online sales is limited, for product innovation,

Very disadvantageous.

Yesterday, it was 4 days since Marsha group announced its withdrawal from the mainland China's physical store market. The flagship store in Beijing's world trade scale is still operating normally, and there is a red promotional information on the glass window at the door.

At 10 a.m. on weekends, a few customers came in to browse through the shops as soon as they opened the door.

Reporters saw that the store was well ordered, goods on shelves were adequate, there was no store notice and information, and there was no sign of any withdrawal.

For the closure of the shop, the staff said that the company had not yet received the notice, "our Christmas gifts have arrived."

The staff member said.

Sure enough, reporters found a number of Christmas gift areas in the store, displaying all kinds of Christmas cards, chocolates, candy, biscuits, socks and so on. The red and green is lovely, and buyers are mostly foreign customers.

Reporters found that Mensa mainly engaged in men's wear, women's wear, underwear, children's wear, accessories, footwear and so on. The design style is full of English fans, and the price is similar to the international fashion brand ZARA.

But unlike ZARA, H&M and other brand stores, Marsha has food and coffee shops, and sells instant coffee, English horn horn, French baguette, and snack foods, condiments, ice cream and so on, attracting many customers to stop buying.

Martha was born in 1884 in Liz, England, and has been in history for over 130 years.

In 2008, Marsha general store officially entered the Chinese mainland market. The first store opened in Nanjing West Road, Shanghai.

According to public figures, the number of stores in mainland China reached 20 at the peak.

However, in recent years, the development was not smooth. After the reorganization of the group in 2015, it closed 5 stores in Shanghai and laid off 60 people by August.

According to the reporter's investigation, up to now, the largest number of stores in Marsha's department store are

There are 7 altogether.

In Beijing, only 1 flagship stores were opened, and the address of the store chose the world trade scale with less traffic and relatively less traffic.

Coupled with the lack of advertising, its popularity in Beijing has not been able to be opened. "If I hadn't seen the news on the Internet, I didn't know Beijing had such a British brand."

White collar Huang said.

As for Marsha, the reason for closing shop is the decline in performance.

In the first half of the year's performance report, due to the blind expansion in recent years, in the 6 months ended October 1st, the net profit fell sharply from 90.21% to 16 million 900 thousand pounds, with almost no increase in operating income, but only 0.85% to 4 billion 994 million pounds. The basic pre tax profit dropped 17% to 231 million pounds compared with the same period last year, far below the analysts' expected 8% decline.

The group pointed out that the main reasons for the loss include scattered retail shops, insufficient scale and limited growth potential. Therefore, MSHA plans to close 53 stores in 10 regions including China, France and Holland.

According to statistics, the total market lost a total of 45 million pounds last year, most of which lost at least 5 consecutive years.

It is stated in the report that if the above closed shop scheme is implemented, the cost savings will be between 150 million and 200 million pounds, most of which come mainly from the cash cost of property related and layoffs.

On the other hand, switching to online stores is the latest choice for Marsha general merchandise.

Up to now, Marsha has launched online business in 21 regions of the world.

In the announcement, Marsha said that mainland consumers could continue to buy Marsha's products through major online platforms such as Tmall and Jingdong, and the group will continue to evaluate the best way to maintain online business in mainland China.

Rand, director of the retail outlook and Analysis Department of the British Retail Association, said in an interview with reporters that retail industry must change its position in order to change itself.

In the future, Marsha will open up online and offline services and vigorously develop online shopping platforms. "This is an important move."

She emphasized.

In the official website of Marsha general store, there are four online outlets on Tmall's online shopping mall, Tmall children's wear shop, imported food Tmall store, Jingdong import wine flagship store.

In Tmall Marsha clothing flagship store, the "double eleven" resumed activities continue to be staged, and various promotional discount information is dazzling.

Martha's flagship store staff said that the price of Tmall for the same dress is indeed much cheaper than that of the physical store.