Will Sanlitun Shop Close Or Completely Withdraw From Beijing?

Following the closure of the right store and the ten mile Fort shop in April and November this year,

To close another one in Beijing, this is the turn to Sanlitun store.

In the remaining two stores, the Asian Sports Village store is also in a state of loss.

Recently, the halls shopping center in Sanlitun, Beijing, issued a notice in the halls food hall that the store will be officially closed from December 19, 2016 due to the structural adjustment of the company.

At 19 o'clock in the evening of November 29th, the reporter visited the Sanlitun store of Hua Tang. The information of the store attracted the residents and workers in the neighborhood. At ordinary times, the food hall of the wate hall, which had not much discount, posted half off or twenty percent off promotional price tags on many shelves, such as condiments, juice, snacks, beer and so on, and some of the products were out of stock.

On the staff of Sanlitun store, Hua Tang said that in line with the principle of "all retained and treated unchanged", it was diverted to other existing stores.

If the employee chooses to leave, he will pay the economic compensation in accordance with the law and terminate the labor contract.

In less than 2 months ago, Hua Tang ended the operation of the ten mile Fort shop.

A food supplier who had worked with Hua Tang for more than 10 years told reporters that last Monday (November 21st), Hua Tang told the supplier in advance that it was about to close the Sanlitun store, and asked the supplier not to deliver the goods to Sanlitun. In fact, last month, the Sanlitun shop has reduced the quantity of purchase, mainly because the loss is too severe.

"Except for the profits during the Spring Festival, Sanlitun stores are basically at a loss.

The daily turnover of Sanlitun store is only 40 thousand yuan, and it loses 600 thousand yuan per month.

Hall officials also confirmed that continuous losses are indeed the main reason for closing stores. Cheng Ning, Minister of Finance Department of Beijing Hua Tang, told reporters that Sanlitun store opened in 2013 to 2015. Although it has not been profitable, its performance has increased rapidly and its growth has been good. However, the performance of 2016 has slowed down or even stagnated.

Therefore, we have to make a decision to close shop.

This is less than 50 days from the Ten Mile Shop in Hua Tang.

Beijing Hua Tang and Ito's Yang Hua Tang in Chengdu belong to the chain retail of Ito's Yang Hua Tang.

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Compared with Chengdu Hua Tang, the performance of Beijing Hua Tang has not been satisfactory.

So far, the top 9 stores in the hut hall in Beijing will only have only Taipei stores and Asian Sports Village stores.

For the remaining two shops, whether the future Hall will withdraw from the Beijing market, the official said that at present there is no relevant plan, and the shops are still in normal operation.

A shopping mall in Washington

The supplier said that the information currently heard is that "the hate club will retain two shops in Beijing, Asian Sports Village and Fengtai, and it will not be turned off".

The above food suppliers also revealed that the Asian Sports Village store was also in a state of loss. The Fengtai store is currently the only profitable shop in China, but it is a small profit.

"The net profit last month was only 150 thousand yuan, mainly because the rent was cheap. The rent of the Fengtai store is about 6 million yuan a year, while the ten mile shop rental is 3000 years. But the Fengtai store lease will expire next year, and it will not be clear if the lease is renewed."

In addition to the rising rental pressure, as for Beijing's halls, as early as 2014, the three representatives of the Chinese Chamber of Commerce, Ito, general manager of the Chinese Hall of Chengdu, pferred to Beijing from the general manager of the Chengdu Yanhua hall in the city of Beijing, and began to renovate the stores in Beijing and shut down 4 stores. At that time Imai Makoto said that the remaining 5 Beijing halls would also be adjusted because "Beijing halls shopping malls are relatively old in terms of goods and services, including food is lagging behind".

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At the beginning of November this year, reporters found that Imai Makoto was also doing research on goods and services in Fengtai store.

Imai Makoto visited the shop in Fengtai.

However, a random interview with reporters shows that the Fengtai store has 4 floors up and down, except for a layer of food supermarket and underground catering service area. Besides, the two or three tier brand shops such as skin care products, shoes and hat clothing are slightly deserted, including JEANSWEST, Baleno, AGG, IES and other low price clothing brands, which are not matched with a sophisticated supermarket consumer group. Even the PBI of its own clothing brand has few customers.

Three years ago, the three representatives of the Chinese Hall of Beijing, China, put forward that the pformation time of the hate hall store in China was 3 years. Now the 3 year deadline is coming. Whether the remaining 2 stores in the hall are facing the fate of closure, there is no answer.