In Recent Years, The Department Store Industry Has Been Showing A Downward Trend.

According to the world clothing shoes and hats net, in the past two years,

The overall retail business is showing a downward trend and its performance has been losing ground.

LON: MKS released its annual results today. In the 12 months ended April 1st, the growth of the sales sector benefited from the performance of the food sector, which registered an increase of 2.2% to 10 billion 620 million pounds, while operating profit was affected by closing stores and restructuring costs, slumping 71.4% to 116 million pounds.

Among them, sales of franchise channels in the international region dropped 3.2% to 314 million pounds compared with the same period, while the sales of direct outlets increased 16.8% to 866 million pounds compared with the same period last year.

Channel sales recorded an increase of 4.9%.

Marks & Spencer 2016/17 financial year key performance data

Marks & Spencer 2016/17 fiscal year divided quarterly growth figures by Sector

By Sector:

Sales fell by 2.8% with the home sector. With the adjustment of the Department's products and store structure, and the reduction of sales promotion efforts, the performance of the Department increased gradually in the quarter, but the sales volume of the clothing and home sectors in the fourth quarter dropped by 5.9% in the second quarter.

The performance of the food sector has maintained a steady growth trend. Last year's annual sales grew by 4.2%.

Main performance data of Martha's 2016/17 financial year by Region

By Region:

As the local market of Marsha's Department, sales in the United Kingdom account for 88.8%, up 1.3% to 9 billion 440 million.

Sales in the international region increased by 10.7% to 1 billion 180 million.

In the past, Martha was a representative of the retailer of "high quality life in Britain", whose business mode was to control the cost by signing a long-term monopoly contract with several large scale suppliers, and at the same time improving the quality to improve the profit margin.

Due to the gradual globalization of the economy, the management mode of Martha's monopoly has long been out of date. The huge volume of suppliers and the network of stores have greatly reduced the operation efficiency of Marsha's department store, and the product renewal cycle has been defeated by the fast fashion brands springing up.

In early 2016, Martha CEO, executive director of the food department of the department store of Steve, was promoted to group CEO. After taking office, he immediately suspended the strategic expansion plan to build Martha into a global retail group. Instead, he chose to streamline his strategy and close most of the overseas stores except Britain and abroad, focusing on the development of joint ventures and franchising businesses.

Steve Rowe believes that Martha's popularity in overseas markets is not high and his knowledge of overseas markets is insufficient. Excessive expansion of the global market is not a good thing.

Steve Rowe said in its earnings report that the implementation of the closed shop restructuring plan is drawing to a close. Marsha's department will pform itself into a food oriented group after streamlining its retail sector, so as to improve its operational efficiency while saving costs.

For last year's annual profit slump, Steve Rowe responded that it was mainly affected by the cost of the restructuring plan.

In November last year, Marsha announced that it would withdraw 53 wholly owned shops in 10 regions, including China, France and Holland, involving a cost of 130 million pounds and a total impairment of assets of 39 million 400 thousand pounds.

Marsha general store began to enter the Chinese mainland market in 2008. At its peak, 20 stores were opened in the mainland, but in recent years the development did not go smoothly. It closed 5 stores in Shanghai and laid off 60 people by August 2015.

Some analysts believe that the brand mode of Martha's franchise has not been approved by Chinese consumers, but its British sentiment is considered "acclimatized" to the Chinese market.

When the competitors changed rapidly, the old department store showed too conservative and prudent.

As of April 1st, all direct stores in China have been closed, and mainland consumers can continue to buy Marsha's products through major online platforms such as Tmall and Jingdong. Meanwhile, the group will continue to evaluate the best way to maintain online business in mainland China.

For the fiscal year 2017/18, Marsha Group expects sales of clothing and home sector to drop further by 1% to 2%, and add 90 Simply Food convenience stores in the UK, with a capital expenditure of about 400 million in the new fiscal year.

Whether at home or abroad, department stores are in a global crisis.

In the first quarter of this year, HK: 3368 lost profits, but Parkson's losses were mainly due to rental income.

In recent years, although Parkson has been repurchasing shares, its stock price has dropped by nearly 70% during the repurchase period from the middle of 2013 to the end of 2016.

NYSE: M, the largest department store in the US, plummeted nearly 40% in net profit in the first quarter of this year.

In the past two years, the stock market of Messi's Department has continued to rise, and its market value has evaporated nearly 70%.

Messi's department store is a microcosm of the US retail industry. S & P said that the default rate of US retail industry in 2017 will exceed that of the 2009 financial crisis.

The decline of Japanese department stores is even more shocking, and its sales in department stores in 2016 were only 60% of that in 2000.

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