The Impact Of The Epidemic Is Too Great! Huzhong, A "Retail King", Lost More Than 200 Million In The First Quarter.

The Limited by Share Ltd of Wuhan Wu Shang Group (hereinafter referred to as "A") issued a notice in April 9th. It is expected to lose 220 million yuan to 230 million yuan in the first quarter, and profit 295 million yuan in the same period last year.

A explained that the shopping center of the company has been suspended since January 23rd, and has been resumed since March 20th. The supermarket stores mainly sell, stabilize prices and benefit people's livelihood, mainly selling low life gross necessities and operating income.

During the reporting period, due to the closure of the city, the company's revenue decreased significantly, gross margin declined, and staff costs increased. The cost of anti epidemic products increased, resulting in a loss of profits for the company.

Chen Wenqian, a securities analyst at new era, said that retail formats such as supermarkets, convenience stores and other retail businesses were affected by the epidemic because they had the attributes of life demand. Although economic activity continues to recover and consumer spending policies such as consumer coupons in some cities have been launched, the epidemic is sweeping across the globe, which is bound to affect domestic production and consumption and curb consumer confidence. The risk of overseas epidemic has increased continuously, and domestic production, operation and consumption activities can not be completely lifted in the short term. Against this background, commodity and other rigid demand are still the main body of consumption. Supermarkets are not restricted in business, cash flow is continuous, business income remains steady, and the industry will take the lead in going out of the trough in the trend of overall consumption inhibition.

Observation, the epidemic also accelerated the digital transformation of retail enterprises, APP accelerated iteration on the supermarket line, a large number of offline necessities consumption to online, improve the "weak link" between large supermarkets and consumers, and in the process of connecting with consumers, through the interaction mode between app and consumers, the supermarket passively took the initiative to grasp and meet the needs of consumers. 。 Among them, due to the advantages of supply chain, logistics technology support and network coverage density, leading supermarket enterprises can improve consumers' stickiness by ensuring the supply of goods and efficient logistics services. After the outbreak, it is expected to continue to improve consumers' dual consumption stickiness.

Chen Wenqian said that from the sample shopping mall data, there is a strong positive correlation between the volume of business and the growth of sales volume. With the downward trend of macro consumption, the high-end consumption has the trend of diverting from the small and medium-sized shopping centers and department stores to the super large and large shopping centers of the core business circle. Over the past three years, sales of shopping malls in the area of 100 thousand square meters or above under the harsh macro environment still maintained a continuous positive growth in sales volume and flat effect. The performance of the shopping malls with a floor area of 5-10 square meters was weak, and the difference between the shopping malls with 100 thousand square meters or more was obvious. The small shopping malls with a floor area below 50 thousand square meters were the most serious ones, and the growth rate was far behind. Large and medium volume shopping malls. A large number of shopping malls have a large number of brands and categories, which can configure a larger scale of experiential formats and enhance passenger flow through diversified scenes and marketing activities.

Previous views have shown that the retail market in Wuhan is healthy and the retailer's rental burden is small. At present, from the vacancy situation of high quality retail property, Wuhan has been far below the average level of the second tier cities. Since 2014, the vacancy rate has been declining, and the vacancy rate in the first quarter of 2016 is only 3.1%. The first floor rent of quality retail property is only 11.4 yuan / square meter / month, which is lower than the two line city average. The low vacancy rate shows that the supply and demand of Wuhan's retail industry is balanced or even slightly scarce, and the lower rental level reduces the cost of retailers. Overall, the development of commercial real estate in Wuhan is more healthy and stable.

In the past few years, the stock of shopping malls in Wuhan has remained stable, and the new market property has not affected the market at about 2 million 100 thousand square meters. From the point of view of investment in commercial business premises, Wuhan's growth rate is not very different from that of the second tier cities or even the whole country. There will not be a significant increase in the property market in the next 2-3 years. As a regional gateway city, Wuhan can radiate the surrounding cities, the potential consumer market is huge, and the commercial property supply is limited. The growth of Wuhan's retail market is very strong, and the growth rate of shopping malls will be higher than that of other cities.

Guo Jin Securities researcher Xu Wenceng said that compared with other regional department stores, the A operation of e Wu business was most robust, mainly due to the following conditions and capabilities:

First, A has a monopoly advantage in Wu Guang business circle and even Wuhan's high-end retail market. Wu Guang business circle is the most important business circle in Wuhan, and the first business circle in Central China. The three main outlets of the company, Wu Guang, Guoguang and WTO, are the most competitive luxury brands, cosmetic brands and jewelry brands. In the context of other shopping centers' withdrawal, business competition is relatively relaxed, and gross profit margin has steadily increased.

Two, A has been deeply cultivated in the Wuhan market for many years. It has a strong brand advantage and customer base. It can be sensitive to the changes of regional consumer demand, and the fine operation / management ability of the management team is in the lead, and the business efficiency is increasing year by year.

Three is the shopping center transformation forward-looking, resolute, breeding efficiency is high. As mentioned above, under the downward trend of consumption, the large volume shopping center of the core business circle has stronger ability to resist risks. In 2007, A made a forward-looking layout of shopping centers. The successful operation of Guoguang (Moore city) laid the leading edge in the transformation of shopping centers in the industry. After that, all the new projects were promoted by the shopping center format and achieved good results.

Public information shows that the company is a large comprehensive business conglomerate in Hubei province. Its predecessor was Wuhan shopping center, founded in 1959, and was listed in Shenzhen Stock Exchange in 1992. The sales scale of the company leads Hubei business, and the 10 shopping centers, including International Plaza, Wu Shang square and World Trade Plaza, are located in Wuhan, Xiangfan, Shiyan, Xiantao, Huangshi and Laohekou. The shopping center has a total area of about 1 million 465 thousand square meters, and its own property area is about 1 million 271 thousand and 300 square meters. The supermarket company has 76 stores, 35 of which are located in Wuhan. The 41 stores are located in other cities of Hubei Province, including Ezhou, Jingzhou, Huanggang, Xiangyang, Yichang, Shiyan, Xiaogan, Huangshi, Huangshi, Huangshi, Xiantao, and so on. The total area of the supermarket is about 666 thousand and 600 square meters, and its own property area is about 112 thousand and 400 square meters.