Global Department Stores Are In Decline. What Should We Do?

A 132 year old British department store

After carefully examining the profitability of the overseas market, a decision was made in early November: turn it off in the mainland of China.

All 10 entities department stores.

It is not known that this is the first time this year that foreign department stores have withdrawn from the Chinese market.

There are many foreign department stores withdrawn from China, and the days of China's local department stores seem to be equally bad.

According to the world clothing and shoe net, last year, there were 138 stores in China's department stores and supermarkets, and the latest Sohu financial statistics. In the first half of 2016, 14 enterprises in China closed their stores.

15.

In fact, the department store lost in the market, this phenomenon is not only happening in China, but also felt that the global department store industry has entered a decline period in the past one or two years.

Japan

From the beginning of this year, the Japanese department store industry is facing the problem of low consumption and the decline of luxury goods sales. Many large department store operators choose to close local stores and concentrate their limited resources on the city stores. Japan's department stores choose a large-scale strategic contraction.

According to the world clothing and shoe net, the market of Japanese department stores reached 8 trillion and 600 billion yen in 2001, but by 2015, the market size of Japanese department stores has shrunk to 6 trillion and 200 billion yen.

Britain

At the beginning of the article, Marsha, a British department store, closed 10 stores in China, but it was only part of the Martha shop plan.

Prior to this, Martha announced that it will close about 30 Entities and 53 overseas branches in the UK this year, including China, France, Belgium, Holland and Poland.

Coincidentally, in August this year, the BHS officially closed down. In August 28th of this year, the famous BHS closed its last 22 chain stores. Since then, the 88 year old shop has disappeared from the high street. In its prime, BHS has more than 150 branches throughout the UK.

U.S.A

The famous Messi department store in the United States, after closing 14 doors in 2015, has closed over 30 stores in 2016, involving many states such as California, New York, Dezhou and so on. At present, Messi's department stores have reached around 100 around the world.

Many people may think that even if the 100 years old Messi store in the United States closes up to 15% of the 100 stores, it is not a big deal, but in the current environment, this century old shop still has to "break arm to survive".

Hillsdepartment stores in the United States closed 235 stores in 2015, which used to be one of the best department stores in the United States.

Sears department, founded in 1893, is almost the only choice of the American public in the past one hundred years since its birth.

In 2016, as at the end of April this year, the loss of hillsdepartment stores has expanded to $471 million, and sales fell by 7.1% year-on-year.

France

Although the department store brands in France did not have large scale closes, the first half of the report showed that the group's medium-term revenue fell from 1 billion 700 million euros in the same period last year to 1 billion 600 million euros, a year-on-year decline of 5.9%.

At present, there are 57 branches and 4 LeBHVMarais stores in France. After a period of time, the consumption of Lord Buddha has always been negative.

According to the world clothing and shoe net, 1/3 will be eliminated in China's commodity trading market in the next 5 years.

Many people like to turn the cold wave of physical retail into an electric shock.

According to the statistics of Ministry of Commerce, the sales volume of online shopping in China was up to 3 trillion and 230 billion yuan last year, about 1 trillion yuan.

Take Tmall's double eleven as an example, sales in 2009 are still only 52 million yuan, and this year has jumped to 120 billion 700 million yuan.

And online shopping products are mainly household appliances, clothing, cosmetics and food, and these are the main categories of physical store sales. Online shopping indeed diverts some of the consumption of physical stores.

However, the electricity providers have said, "this pot, we do not recite."

Some people think that the global recession in department stores is mainly due to the reasons for the department stores themselves.

Generally speaking, shopping malls of department stores are faced with unfavorable factors such as too small volume, single business, isolated stores, and parking inconvenience. In the increasingly fierce competition of entities, large scale business circles that are built up themselves are increasingly difficult to cultivate; while the location of high-end department stores is greatly affected by the rapid shrinkage of luxury goods and high-end consumption, and in addition, department stores under the background of market depression, business adjustment is not in place, homogenization competition is serious, and ultimately they can only rely on a large number of shops to break their own arms.

In fact, department stores are places where salesmen and customers meet. Compared with the e-commerce website, physical space is the "treasure" of department stores.

In Japan, in May this year, the "T-SITE", which was opened in the city of Osaka, was considered a new form of replacement by department stores in Japan.

Mei fang T-SITE is the third comprehensive commercial facility opened by CultureConvenienceClub company (CCC), formerly known as the near iron department store in 2012.

Unlike traditional department stores, CCC takes a lot of time in bookstores, coffee and children's playground.

CCC is based on its kite Valley bookstore and video rental shop TSUTAYA, which is equipped with coffee, grocery, clothing, beauty and other categories, and English conversation classroom, indoor amusement space for children free play; in addition, it also introduces MITSUBISHI Tokyo UFJ bank and other financial institutions.

They think that a department store is neither a discount store nor a special merchandise store. The value it can provide is not a "thing" but a shopping experience.

In recent years, there is also a new concept in retail ecology, which is called retail social interaction. Consumers not only regard shops as shopping places, but more are social places.

This retail social networking business is also not easy to ignore. Alipay launched a much criticized "campus diary" in the early days. It is also an act that the electricity supplier urgently establishes "retail social interaction". It is only because Alipay has some quick success and instant benefits that leads to the temporary termination of the project.

The continuous decline of the department store industry seems to be a certainty at present. But retail as a part of people's life is essential. Physical retail will change, but it will not disappear.

More interesting reports, please pay attention to the world clothing shoes and hats net.