Wanda Department Stores Removed The Only Store In Ji'Nan, Shandong

Wanda's department store is removing its only store in Ji'nan, Shandong. What's the matter?

Here world

Xiaobian of the network to introduce the Wanda Department Store:: a slimming thin shop to start shop tide!

Wanda has become China's largest chain corporation as one of the major business segments of Wanda Group.

But it is carrying out a slimming plan.

According to the reporter's on-the-spot interview, with the complete withdrawal of Wanda Department store, which is located at four Wanda Plaza in Ji'nan, Ji'nan Wanda Department store will be cancelled immediately, and more than 80 employees and hundreds of businesses will be diverted.

In the future, the floor of Wanda Department store will be pformed into an indoor pedestrian street, arranged in the form of an independent store. It will be fully connected to Wanda Plaza commercial management company of Ji'nan Wanda Department store.

Earlier this year, it was widely rumored that Wanda will close 10 heavily damaged department stores and reduce 25 floors of department stores that are not operating well.

However, Wanda Department Store in Ji'nan is not the list of previously reported stores, but it has become the first store that has been substantially removed.

"At the beginning of this month, we just received a notice from the shopping mall and asked us to evacuate all of them before 15."

On the afternoon of July 9th, a number of shops in Wanda Department Store were evacuated.

In a store that has been in operation for nearly five years, a salesperson who is busy counting the goods told the interface reporter that the consumption popularity has been depressed for five years. The withdrawal of the cabinet is a matter of time.

A staff member of Wanda, Ji'nan, who did not want to be named, explained the reason for the withdrawal: "according to the requirements of the group, every Wanda Department reported the adjustment plan to its headquarters according to its own situation. The plan can be formally implemented after the approval of the headquarters. This is the strategic adjustment of the group stage."

This is just the tip of the iceberg.

At present, Wanda is carrying out a new choice of business format.

In addition, in order to quickly fill the huge volume of Wanda Plaza rental floor, Wanda has developed a lot of main stores, some have made great success (such as Wanda cinema), others have reached the crossroads (such as Wanda Department store, big singer KTV).

Ambitious Wang Jianlin now has to face the problem of "breaking away from home".

Wang Jianlin used to think highly of department stores.

Despite years of losses, Wang Jianlin has always had great expectations for department stores. He even made arrangements for the department store in Hongkong independently by setting up the company structure.

"For department stores, Wang Jianlin now tends to do subtraction.

Originally wanted to be listed, the story is not good now, his energy is in the electricity supplier, finance, culture, department stores are not his focus.

A former executive of Wanda Department said.

It has been revealed that Wanda's department will start a big adjustment in June this year, and the headquarters will be cut from 150 to 50, and the stores will be reduced to 50.

Wang Jianlin once revealed that half of Wanda's stores were losing money, half of which were profitable, and the consolidated statements were a loss.

Wanda is now concentrating on the loss of serious stores. If successful, Wanda's overall financial statements will soon improve.

Wanda's revenue reached 15 billion 490 million yuan last year, an increase of 39% over the same period last year, and only 91% of the adjusted plan was completed.

In addition, Wanda's net profit increased by 7% and its losses continued to expand.

"The department stores fight well and look at this year. I hope you will firmly accomplish the targets of income and profit.

If completed, it means that the department stores will turn over completely and lose the hat of the group's backward units.

Wang Jianlin said at Wanda's annual meeting in 2014.

Wanda's goal in 2015 was 28 billion 800 million yuan and 17 new stores.

Wanda will still occupy a place in Wanda Group, but the site will be more cautious.

Earlier, in the early days of shopping malls, merchants were under pressure, Wanda Department store as the main store for Wanda Plaza.

Its main responsibilities are positioned to support investment and profitability is placed in the second place.

According to a businessman from Wanda Department Store in Ji'nan, compared with the nearby Hang Lung Plaza, merchants generally do not have to pay rent for Wanda. They only need to pay the water and electricity property fee, and the mall will be drawn from their sales volume, ranging from 10 to 20 percent.

This is Wanda's customary "low rent farm" strategy, using concessions to attract merchants to quickly realize the full rental operation of Wanda Plaza.

With the withdrawal of Wanda Department Store in Ji'nan and the opening of indoor pedestrian streets, the way of income that has relied on the profits of businessmen to earn money will also be pformed into a profit earning mode.

Previously, Wanda had proposed that "2/3 of Wanda's net profit in 2020 should come from rental income".

Nowadays, the whole department store industry is not very prosperous.

"Wanda Department stores also intend to make some adjustments in the format, leaving the Wanda Department store, we must focus on how to improve the profit of a single store."

The foregoing Wanda

Executives said.

Wanda Department store has a large area and low rental income. If it connects with the indoor pedestrian street and rents to other brands, the ability to pay rent will be stronger. This is also the practical significance of Wanda Plaza's "going to department stores".

There are indications that the adjustment of "going to department stores" has already begun in Ji'nan Wanda.

In August last year, Ji'nan Wanda Department changed the children's articles and bedding shops on the five and six floors to restaurants and gymnasiums.

With the introduction of catering, it does bring more passenger flow.

With Wanda Department store, there are Wanda's own chain store KTV brand.

At present, the Wanda pop star on the four floor of Wanda Plaza, Ji'nan, has quietly changed hands, and is taken over by a KTV company named sugar tide in Beijing.

It has been reported that the locations of big singers in all parts of the country have been successfully pferred out of 15 stores, and more than 74 stores are waiting to be pferred.

In the 15 stores that have been successfully pferred, the pfer price reached about 8000000 yuan and the lowest was no less than 1 million 500 thousand yuan. If the average value is pferred, the total income of 89 stores will reach 3.6 billion.

In recent years, with the expansion of Wanda Plaza, KTV, a "standard" singer, has also been stationed in the major cities rapidly, taking the first place of "the first market share, the first nationwide turnover, and the expansion speed of the nation's first".

In the industry view, Wanda is just the "matching industry" developed by Wanda Group for "warm" commercial real estate. In the past few years, it has indeed contributed to the passenger flow of Wanda Plaza to a large extent.

However, with the maturity of Wanda Plaza, the historical task of the big singer has been completed and its role has been declining.

With regard to the reasons for the large-scale closure and pfer of Wanda star, Wanda pop star insiders say that on the one hand, Wanda's star singer has poor business performance, on the other hand, it is developing too fast, lack of talent resources, and the derailment of the target and industry, and the company's strategic deviation is also an important factor.

At the annual meeting of 2014, the singer was criticized by Wang Jianlin for serious management loopholes.

Wang Jianlin said: "the three early warning of the financial system, the general manager and the vice president in charge still do not improve. The group has to take disciplinary action.

Because of the leadership problem, it also affected the income and bonuses of thousands of employees last year.

At present,

Four new pillar industries, Wanda commerce, cultural industry, financial industry and e-commerce, have been formed.

In Wanda's interpretation of the four pillar industries, there has been no specific mention of department stores and KTV formats.

The status of these two formats in Wanda Group has been seriously weakened.

I wish Wanda's slimming downsizing plan could achieve their desired result.