Facing The Encirclement And Suppression Of Internet Giants, Department Stores Continue To "Pform".

In all kinds of Republic of China films, the fragments of Shanghai can hardly be separated from the "Yongan department store" as a background.

At that time, the "Yongan department store" had already become a star.

A period of old past.

The popularity of online shopping has led department stores to be directly affected by the industry, and many retail companies including department stores have been brought under the command of Internet giants.

For example,

With Yintai,

And Yonghui.

At the same time, on the Internet shopping station's draught, the department store industry has been one of the industries frequently sung empty in recent years.

Facing the encirclement and suppression of Internet giants, department stores in recent years are in a period of continuous pformation.

Extremes must be reversed. When the online traffic is getting more expensive, the cost of the retail assets of the offline industry has begun to increase after the rich mining industry has been close to the exploitation of the Internet giant.

More importantly, after many years of decline, the valuation level of many physical retailers, especially the department stores, has been very low. Of course, it is not the big A shares, but the Hong Kong stocks.

The stock price continued to fall, squeezing the water on the profit table, and even breaking the stock price sharply, which has attracted frequent investment from outside capital.

Among them, the retail industry chiefs are also clear about their value and are not willing to be sniping at low positions, or even frequently buy back or increase their holdings.

Especially for Hongkong department stores with large private property, this action can not be explained only by the bottom up of profits. What is more important than the bottom of profits is that assets that are long on the land have already fallen below the net assets of commercial real estate. These properties have not even been reassessed, or they are accounted for at a cost some years ago.

To be exact, it is less than the cost price of the year, because it has already made a lot of depreciation.

Hold on to the position, and defend the last fort.

Next, let's take a look at the latest developments in the department store, based on 1700.HK, which has recently announced earnings growth.

Profit growth is the first in four years, and operating interest rate is bottoming out.

Many companies in Hong Kong stock companies have difficulty in knowing what their main business is.

However, if you talk about the eight hundred companion, you will not feel strange.

The eight hundred companion is a Japanese department store brand. But in the Asian financial (4.67, 0.02, 0.43%) crisis of 1997, it filed for bankruptcy.

According to the world clothing shoes and hats net, in 2006, Hua Di International bought Wuxi's eight hundred friends and began to enter the second tier cities.

In 2010, it landed in Wuxi stock market. Currently, it has 19 department stores and 60 supermarkets in Nantong, such as eight hundred friends and eight hundred partners in Nantong. The main battlefield is in Jiangsu.

China International mainly has two businesses: department stores and supermarkets. For a long time, the sales volume from department stores accounted for about 74%, while the contribution of department stores increased from 74% in 2010 to 90% in 2017.

According to the results announcement, China International recorded an income of 4 billion 444 million yuan in 2017, an increase of 5.99% over the same period, and a net profit of 340 million yuan to the parent company, an increase of 4.6% over the same period last year.

2017 is the first time that China International has gained profits since 2014, after three consecutive years of decline in profits.

This is also the overall profit situation of domestic department stores in recent years.

China International Department store business in 2017 has an interest rate of 7.6%, an increase of 0.1 percentage points over the same period last year.

Previously, its operating interest rate declined from 10% in 2014 to 7.5% in 2016.

A major reason for the decline in profits is the increase in sales of department stores.

Same store sales collective growth, department store industry bottomed out?

In 2017, China international sales amounted to 11 billion 188 million yuan, an increase of 2.7% over the same period, a positive growth for second consecutive years.

However, measuring the overall profitability of retail businesses such as department stores is more commonly used in the same store sales growth.

Same store sales, generally refers to stores open for more than one year, that is, the sales of mature stores.

The growth rate of the department store business in the same place, which was the largest profit in China's international market, was in the same period of growth in 2017. The growth rate was 0.4% year-on-year.

In addition to the growth of the department store business in the same place, the growth of other department stores in 2017 is also increasing.

It can be seen that most department stores in 2017 welcomed the same store sales year-on-year growth.

Among them, due to the adjustment of stores, the same store sales are still negative growth, but the decline has narrowed by 2.7 percentage points. In fact, it has increased by about 3.87% in the fourth quarter of 2017.

In March 29, 2018, the Ministry of Commerce released the "2017-2018 China department store retail development report". From the survey of 85 department stores, the development of department stores in 2017 has improved and sales increased by 9.1% over the same period last year.

Although the industry sees signs of improvement, the department store industry must remain vigilant under the impact of online shopping.

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Can department store hide goodwill landmines safely?

In 2017, the total retail sales of consumer goods in China amounted to 36 trillion and 600 billion yuan, an increase of 10.2% over the same period, of which retail sales amounted to 5 trillion and 480 billion yuan, an increase of 28% over the previous year, accounting for 15% of the total retail sales of social consumer goods, an increase of 2.4 percentage points over the same period last year.

In recent years, offline department stores are facing the problem of "pformation", even the heavyweight department store heavyweight Messi store is also hard to reach the impact of Amazon.

So it is still hard to say whether the turning point of department stores has arrived.

If the strategy of "pformation" can not be realized, then the goodwill of some department stores before mergers and acquisitions will be a big landmine.

Take China International as an example.

In 2014 and 2016, the total amount of goodwill in Yangzhou was reduced by 56 million 728 thousand yuan due to its failure to achieve the expected expansion.

In 2016, due to the closure of the business circle, the Nanjing eight hundred companion business did not meet the expectations. Therefore, the department store was closed and the 22 million 328 thousand yuan goodwill was fully reduced.

By the end of 2017, the international goodwill of Goodland accounts for 250 million yuan, accounting for 4.76% of the net assets at the end of the year. The amount is not large, but in view of the fact that two retail sales have been made, if the retail industry in the future is still unable to resume growth, the goodwill will still be a great impact on profits.

In fact, in recent years, many department stores listed on the Hong Kong stock market have suffered impairment of goodwill.

For example, Mao Ye International (0.87, -0.02, -2.25%) in 2017 raised 183 million yuan of reputation reduction, and its 2017 net profit of 1 billion 268 million yuan, if the disposable income of about 1 billion yuan, then 2017 net profit is only 268 million yuan, at present there are 1 billion 410 million yuan in its account.

In the trend of a stock price drop, some department stores listed on the Hong Kong stock market are buying their own stocks recently.

In April 9, 2018, China International repurchased 2 million 918 thousand shares, which cost HK $5 million 714 thousand.

In fact, China International's repurchase has lasted for more than 4 years: since November 2013, a total of 322 million shares have been repurchased, and the total repurchase amount has amounted to HK $560 million, and the share capital of the company has also decreased from 2 billion 500 million shares at the beginning of the listing to the current 2 billion 200 million shares.

Another golden eagle business, which is the main battleground in Jiangsu, has been buying back for more than 10 years, that is, it began to buy back in 2008. Since November 2008, it has repurchased 330 million shares, and the total amount of repurchase has reached HK $3 billion 280 million.

This trend of violent repurchase has a feeling of sticking to the ground.

Can the inflection point of the department store be able to come? This is not the point we want to study. If you really want to get gold from the Hong Kong stock department store, we must pay attention to it: has his house been reassessed?

There are more than 2000 words in this article. You can think of the front content as nonsense, and the last paragraph can be collected.

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