Some People Are Glad That Some People Worry About How To Deal With Old Buddha And Other Foreign Stores.

At the end of this month, the ten Libao store in the old brand of foreign capital department stores will be officially closed at the end of this month. It is different from the past events. This time the hall closed is its bar store in Beijing.

Meanwhile, Malaysia's largest department store.

The sun palace store in the North Third Ring Road of Beijing will also be closed by the end of this month.

Some people are glad that some people are worried. Once they lost the capital, they also entered the Beijing market in two degrees. Now they keep the overall growth of their chips in the Chinese market. It is reported that the Department of general Lafayette will continue to increase the number of China to open new stores in China.

Broken arm guaranteed performance

After Parkson's close shop, Hua Tang has entered the rhythm of closing shop.

Behind the continuous deepening of department stores, the whole department store is becoming increasingly difficult.

Public information shows that in 1997, Japan's Ito Yang Hua Tang established a joint venture of Chengdu Ito Yang Hua Tang and Hua Tang Yang Hua Tang, opening shops in Chengdu and Beijing respectively.

Chengdu store is named "Ito Yang Hua Tang", and Beijing store is called "Hua Tang shopping mall".

The first shop in Hua Tang shopping mall is the old ten mile Fort shop.

In April 1998, the first store of Hua Tang shopping mall opened in China after ten years of entry into China. In glorious times, the store contributed more than 30% of the total sales in Beijing.

After 2008

In the Beijing market began to decline, the territory is also shrinking. From 2011 to 2014, Hua Tang has closed down four stores, Wukesong, Wangjing, Beiyuan and Xizhimen stores.

In the face of the downturn, Ito, vice president of the three representatives of China, has begun to adjust frequently to China's business in China. Imai Makoto, general manager of Chengdu Ito Yang Wah Tong, who has a good record, has been pferred to Beijing Hua Tang Hua Tang to fight the fire and fully reorganize Beijing's business.

At that time, Imai Makoto said frankly, "the remaining stores in Beijing district are not all profitable, and do not rule out the possibility of closing stores in the future".

As far as expected, the right store also announced the closure last year.

However, it is hard for the industry to accept that today, as a landmark store in China, the ten mile old shop is also difficult to escape.

The industry began to question whether Hua Tang had the idea of withdrawing from the Chinese market.

Earlier, the head of the planning department of the Hon Tong planning department told the media that the right store will be the last closed shop in the company's adjustment.

Three Fu Bo also clearly put forward the three year plan, striving for the regeneration of Beijing hall.

However, the Daxing shop closed in July and the new ten mile shop which will soon be closed still let Hua Tang break his promise.

Coincidentally, with the enormous pressure of year-end financial report, Baisheng group, the largest department store in Malaysia, has already sold its Sunpalace shop and property in Beijing's Third Ring Road.

At the same time, it also announced that it would sell all the shares and related shareholders' claims of the wholly owned Affiliated Companies in China.

The Chinese assets are packaged and sold. What is the 100th foreign investment in the next game?

In the past two years, the Parkson business group has been unable to effectively stop its losses due to its drastic multi format layout, increasing self employment and closing stores, and has been hit by electricity suppliers, shopping centers and other local department stores. Parkson has been in the most difficult period since its entry into China.

Public information shows that Parkson has closed at least 8 stores in the Chinese market from 2012 to the end of last year. So far this year, Parkson has closed 3 stores, two of which are in Chongqing.

Reporters noted that behind the big closed shop, the performance of Baisheng group is still not satisfactory. The decline in performance for 3 consecutive years has made the once brilliant foreign department store slightly embarrassed.

It is understood that the Parksun Sun Palace store has been losing money since its opening in 2010. The group sells the store and expects net income of about 1 billion 900 million yuan, which will be used to expand its fashion and catering.

Continue to enrich its products and services.

Prior to that, Baisheng group's Chinese business has declined sharply in recent years. In 2013, 2014 and 2015, Parkson's net profit fell 58.4%, 34%, 174%, and 183 million yuan in 2015.

This year's China Daily reported that Baisheng group lost 124 million yuan in the first half.

At present, department stores are in a sluggish fashion, and all sectors are talking about how to pform. Parkson has also done a lot of practice in this respect, but facts have proved that it is still difficult to stop the pace of losses.

The old Buddha of the counter attack

In the department store, the mainland market is constantly being hit by electricity suppliers and shopping malls.

Department stores grew.

The Chinese mainland market, once frustrated by France's old Buddha's department store, has now become an important place for the strategic adjustment of the old Buddha's group.

In the first half of this year, Beijing's Lafayette department store got rid of losses after two and a half years of business and ushered in a profit period.

In June of this year, sales of Beijing's Lafayette department increased by 13% compared with last year, and passenger traffic grew by 29% over the same period last year, while sales in the second quarter increased by 20%.

stay

Bai Pengwei, President of Lafayette department store, believes that strong growth is the positive result of the group's expansion of diversified products and the adjustment of its brand portfolio.

He said that at present, the Department of Lafayette is expanding its life art and sportswear area. The focus of the pformation is on the ground floor and the four floor. The elimination part is no longer favored by consumers, and it introduces new brands that meet the needs of consumers.

The upgrading of the four tier area has been completed, and the upgrading of the underground one is also in progress.

However, Lai Yang, Secretary General of the Beijing Business Economics Association, said that the increase in the performance of Beijing's Lafayette department store was caused by the very low performance base of the previous two years.

"In the past two years, the performance base of Lafayette department is low, and this year's performance has even risen, and its overall level is not comparable to the major department stores and shopping centers in Beijing", he said.

In addition, as for the practice of Lord Buddha's expansion of the Chinese market, Lai said that it is feasible for France to make the profit point in China, but if the traditional department store is still expanding in China, it will be difficult to develop.

"The decline in performance is a common problem in global department stores. The department store industry is in recession, and China's department stores are no exception."

According to Lai, compared with traditional department stores, Lord Buddha should make a strategic pformation to lifestyle.

"The Chinese market has great potential for development, and the Chinese market lacks a place to experience French culture. If we don't make pure department stores, we will not only attract consumers by brands, but also carry out strategic pformation in Europe, France and France, so that we will have greater opportunities for development."

Guo Zengli, director of China shopping center industry information center, said that compared with foreign supermarkets, foreign department stores had a lot of pressure.

"Consumption culture everywhere is still an important reason for restricting the development of foreign department stores and even China's chain stores to the whole country.

The regional characteristics of China's department stores are obvious. Foreign department stores and chain stores in China have no obvious advantages in competition with local department stores when they enter different provinces and cities. "

Guo Zengli said that the major department stores are gradually increasing the proportion of proprietary brands and unique goods, and further optimizing the special products, adjusting according to the changes in consumption behavior.

This will attract consumers in a certain category or region and cultivate core competitiveness.

Parkson's drop in performance also seems to be inextricably linked to the flow of foreign capital.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, said that the reaction of foreign department stores is not very sharp. Most foreign businesses need to wait for headquarters' opinions. However, under different circumstances such as distance, culture, life and consumption, the headquarters' ignorance of Chinese business culture and consumer psychology leads to a final strategy decision that can not match 100%.

"The day when risk is shifted to suppliers is over, but the era of self-reliance has arrived."

Guo Zengli believes that department stores will not die.