8 Billion Take 20 Provinces, 37 Wanda Department Store Suning.Com, Accelerate The Completion Of The Whole Channel System To Build!

In February 12th, Suning chairman Zhang Jindong announced at the Spring Festival rally that suning.com formally acquired 37 stores in Wanda Department store.

However, suning.com did not issue a notice on the deal.

Regarding the outside concerns about the amount of suning.com's acquisition of Wanda Department store, and whether it reached the standard of the letter of the listed company, suning.com said that the paction consideration, the total assets of the acquisition target, the operating income and net profit did not meet the criteria for the Listing Rules of the Shenzhen Stock exchange.

However, according to reports from the media, it has been confirmed by many parties that the amount of suning.com's purchase of Wanda Department Stores did not exceed 8 billion yuan, while those close to Suning also revealed that the paction was "bottom up", and certainly no more than 8 billion yuan.

According to the reporter, Wanda Department store and commercial real estate, cultural industry, senior hotel together called Wanda Group's four pillar industries.

Wanda Department store was established in 2007 and is actually controlled by Hongkong Wanda Department Store Group.

Signed the "chain development strategy cooperation agreement", carried out extensive cooperation in the field of Wanda Plaza, such as electrical appliances 3C, maternal and infant products, and so on. In January 2018, Suning signed a strategic cooperation agreement with Wanda Group and Wanda commerce, plans to invest 9 billion 500 million yuan or equivalent Hong Kong dollars to purchase about 3.91% of Wanda Commercial shares, and on the basis of the original property leasing cooperation, further promote the comprehensive cooperation in the business areas such as commercial property development and operation, financial services, membership data and so on, and this sunning acquisition of Wanda Department stores is expected to further enrich the company's online and offline consumer scenarios, or integrate and complement various formats such as cloud stores, red children, supermarkets and polar objects, so as to enhance the whole scene consumption experience and enhance the stickiness of members. Reporters noted that people in the industry said during the day that suning.com's acquisition of all department stores in Wanda Department was a continuation of Wanda's multi-dimensional cooperation. In 2015, Suning and Wanda Group

According to the financial report, Wanda sales in 2016 was about 16 billion, and in 2017, it achieved substantial profit, and net profit increased by 60% over the same period last year.

The 2007-2012 year is the high-speed development period of Wanda Department store, and the number of shops opened in some years is 15-20. In 2013, it lost its first income in 2013 and closed 56 stores in 2015.

Wanda Department stores are located in the CBD or downtown area of a second tier city with more than 4 million members. Up to now, there are 37 stores in Wanda Department stores, including 14 in East China, 8 in North China, 4 in Central China, 3 in the northwest, northeast and southwest, and 2 in Southern China.

Xu Xiaofang, chief commercial retailer analyst at CITIC Securities, said that after 2016-18 years of shutting down poorly managed stores, more than 37 stores in Wanda Department have been operating well and operating light assets. The acquisition price is expected to be fair, and mergers and acquisitions are expected to add to suning.com's business performance.

In Xu Xiaofang's view, the industry should understand this acquisition from a strategic direction and an ecological layout perspective: Suning is the most firm and most committed company in the pformation of new retail sales of traditional retail pformation and the promotion of double line integration. It is a member of the Ali department and a company that tries to compete with ALI, Tencent and Jingdong in terms of ecological layout.

First, because of the change of consumers, the business of retail business will be promoted to all categories, channels, scenes and intelligentization.

The development of electronic commerce and mobile Internet has made consumers' buying behavior break through the limitation of time and space, making the separation of shopping decisions, purchase and service links, and decided that the retail leader in the future must realize the layout of the whole category, the whole channel, the scene and the intellectualization, so as to truly meet the multi-dimensional needs of consumers and have a strong market position.

And looking at the layout of the offline business, such as Ali, tengjing and Suning, are all around the commodity (supply chain) and the scene, serving the original business while focusing on big data and financial business.

Xu Xiaofang expects that, with the completion of the merger, Suning will carry out information and scene pformation to Wanda Department store. The two sides will share resources in the supply chain, members, finance and so on. Suning will rename it to promote integration.

This merger and acquisition will further promote the close cooperation between Suning and Wanda, covering property, finance, membership, information system and so on.

The market participants said frankly that suning.com is the reserve power for long-term development, strengthening the layout of high-frequency categories and multi consumption scenarios, including vigorously laying out the necessary high-frequency channel, Suning shop, continuing to expand suning.com Plaza and the integration of Wanda Department store. If we complete the category expansion, suning.com is expected to complete the pformation of new and old growth kinetic energy and open up room for growth.

Public information shows that Suning is the leading channel in the field of home appliance 3C in China, and has multi dimensional and multi-level network layout under the Internet.

According to the business format, operating area, geographical location and other factors, Suning Appliance 3C professional shop can be divided into cloud stores, flagship stores, central stores, community stores, County stores and other types.

Since 2012, the company has carried out comprehensive Internet pformation of offline stores. On the one hand, it has promoted the digitalization level of stores through Internet technology, and on the other hand, it has increased the proportion of experience formats in stores.

Reporters previously reported that suning.com had issued a notice of 2018 annual performance notice amendment, the net profit of 7 billion 580 million yuan -80 billion yuan in 2018, to 12 billion 790 million yuan -132 billion yuan, because the sale of 13 million 160 thousand shares of Alibaba shares in December 2018, is expected to achieve net profit of 5 billion 205 million yuan.