Author: Tang Yidao
Department Store seems to be thinking about how to survive!
In 2019, the Chinese department store market was still changing and turbulent, and traditional old department stores saw a wave of closing stores, and the industry was reshuffled.
Image source: Internet
Wanda Department Store changed ownership Suning , does not continue Wanda Department Store brand;
th century golden flower was sold, and Xi'an Qujiang Group took over;
Wangfujing Department Store Net profit fell by 14.33% in the first three quarters of 2019;
Maoye Department Store closed stores one after another, increasing revenue but not increasing profits;
Tianhong survived hard, and department store revenue was negative;
Nanning Department Store was sniped by Baoneng system sniped , the profit is less than 10 million and the subsidiary lost the case, and the future is uncertain;
...
Site in 2020, looking back at the department store giants that fell or had difficulty in 2019 may bring new inspiration to the survival and development of department stores in 2020.
2019 Department Store Events
Wanda Department Store, Wangfujing , Century Golden Flower...
Not living well
Wanda Department Store 37 stores sold all
Suning took over
"Whatever you want, you have to have something, just do it yourself"
—— Wang Jianlin
Wanda Department Store, founded in 2007.
The early Wanda Department Store developed so quickly that it envied its peers.
At the end of 2014, Wanda Department Store opened a total of 99 stores, with revenue reaching 25.6 billion yuan, a year-on-year increase of 65.3%. During its heyday, the total number of stores in Wanda department stores nationwide reached 110.
However, the good times did not last long. With the overall decline of the industry and the rapid expansion in the early stage, Wanda Department Store's downward trend has come.
Image source: Yiou.com
2013 Wanda Department Store revenue suffered a net profit loss of 7% for the first time. In 2015, the situation was getting worse and worse, and it shocked the department store industry with "56 stores closed in one year". In 2017, Wanda's performance was kicked out of its financial report because of its poor performance.
suffices until 2019, Wanda Department Store finally failed to escape the fate of being sold.
Image source: Internet
On February 12, 2019, Suning.com Chairman Zhang Jindong announced at the New Year’s Party that Suning.com officially acquired all 37 department stores under Wanda Department Store Co., Ltd. (hereinafter referred to as "Wanda Department Store"). On May 15, 37 Wanda Department Stores were renamed Suning.com Plaza .
At this point, Wanda Department Store no longer exists.
Image source: Hexun News
Jack Ma Once had a gamble with Wang Jianlin for a century, the agreed bet was 100 million yuan, and it was betting whether e-commerce can have more than half of the retail market share in 10 years.
Now, Wanda Department Store is being sold! The outcome seems to be obvious.
Century Golden Flower 64 million
Selling Qujiang Financial Holdings
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Century Golden Flower, as a local high-end shopping mall that has been in Xi'an for 21 years, has achieved rapid development since its establishment in 1998.
was listed in Hong Kong in 2000, and from 2001 to 2012, it raised nearly HK$600 million through seven rounds of allotment financing, with outstanding performance. Since its launch, Century Golden Flower's sales revenue has increased from the initial 200 million to 5 billion.
Image source: Baidu Encyclopedia
However, since 2015, Century Golden Flower's performance has declined sharply and its glory has disappeared.
From December 2019, Century Golden Flower finally changed hands and sold at a low price. The wind of the weather stopped
19 On December 2, 2019, Hong Kong listed company Century Golden Flower (00162) issued an announcement stating that the largest shareholder Maritime Century Limited, that is, "MCL" transferred 336 million shares held by it (accounting for 29.24% of the total share capital of the listed company) to Qujiang Financial Holdings, with a total quotation of HK$71.368074 million, totaling RMB 64.22 million, or HK$0.2123 per share.
Century Golden Flower, which has been listed on the Hong Kong stock market for nearly 20 years, has changed its controlling stake this time, and it has come a bit suddenly.
Image source: CBO News
Century Golden Flower, born in 1998.
Qujiang Financial Holdings, born in 2018.
21-year-old Century Golden Flower was sold at a low price to 1-year-old Qujiang Financial Holdings.
Wangfujing department store
0 New China's first store, which is well-known in China and abroad, has gone through 65 years of ups and downs.
Wangfujing Department Store was founded in 1955. It was formerly the first store in New China, which is well-known both at home and abroad, the Beijing Department Store.
As of the end of 2014, Wangfujing department store has opened and operated 47 large department stores in 28 cities across the country.
However, according to the latest information on the official website of Wangfujing , as of the time of publication, the stores of Wangfujing across the country have been reduced to 43.
Image source: Wangfujing official website
On October 29, 2019, Wangfujing Group Co., Ltd. (hereinafter referred to as " Wangfujing ") released its third quarter report for 2019.
report shows that Wangfujing achieved a total revenue of 19.401 billion yuan in the first three quarters, a year-on-year increase of 1.06%; net profit of 847 million yuan, a year-on-year decrease of 14.33%
Picture source: Wangfujing official website
In addition, the main business revenue decreased.
During the reporting period, the operating income of department stores and shopping centers of Wangfujing was 14.959 billion yuan, a year-on-year decrease of 3.04%; the operating income of outlets was 3.21 billion yuan, a year-on-year increase of 24.03%.
December 2019 Wangfujing department store was also exposed to have suffered serious losses in Rong for 7 years and may withdraw from the Fuzhou market this year.
Image source: Web page screenshot
Main business dragged the back, revenue growth slowed down, Wangfujing department store encountered difficulties.
Maoye Department Store increases revenue but does not increase profit
Maoye Department Store, the number one brand of Shenzhen retail department stores, has led the innovation of Shenzhen's department store and was once famous nationwide.
Maoye Department Store was founded in Shenzhen in 1996. It is one of the first private department stores to enter the mid-to-high-end retail market. It was once known as the number one retail department store brand in Shenzhen.
However, the business world has been rising and falling, and the performance of Maoye International has not been optimistic in recent years.
data shows that Maoye Department Store has begun to decline since its net profit reached its highest value of 1.365 billion yuan in 2014.
In 2016, the net profit was even only 46 million yuan.
In 2017, it rebounded.
In 2018, it fell by 25.43% year-on-year to 799 million yuan.
In 2019, Maoye Department Store still increased its revenue but not increased its profits.
Image source: Maoye International official website screenshot
On June 30, 2019, Maoye International (00848.HK) released its performance report.
report shows that during the period, the company's total operating income was RMB 3.889 billion (the same unit below), a year-on-year increase of 2.3%; operating profit was RMB 1.362 billion, a year-on-year increase of 4.1%; EBITDA was RMB 1.942 billion, a year-on-year increase of 12.3%; and net profit was RMB 422 million, a year-on-year decrease of 17.1%.
From the initial "romantic" to the current "storm", where will Maoye Department Store go in the future?
Tianhong Department Store negative revenue growth
"To become a century-old store, you cannot die."
-Gao Shulin
-Tianhong, founded in 1984, is the earliest department store brand in Shenzhen.
When many traditional department stores failed to survive the cold winter of department stores, Tianhong began its transformation early.
began to plan for transformation in 2012 and clearly embarked on the omni-channel road in 2013.
However, from the perspective of department stores alone, Tianhong's department store transformation effect is not good.
In 2019, according to the third quarter report of Tianhong Co., Ltd. in 2019, Tianhong Department Store's revenue and total profit were negative year-on-year, with operating income falling by 5.64% year-on-year, and total profit fell by 5.18% year-on-year.
Picture source: Tianhong Co., Ltd. 2019 third quarter report
. According to Tianhong’s official website information, Tianhong currently has only three high-end department store brands, Junshang 3019, Junshang Dongguan Store and Junshang Huizhou Store.
From 1984 to 2020, more than 30 years later, Tianhong's department store industry also fell into an embarrassing situation.
revenue growth is negative, and Tianhong Department Store is still struggling to survive.
Nanning Department Store Future is uncertain
Nanning Department Store was established in 1956. It is as famous as Ewushang, Wangfujing , Chongqing Department Store and other old department stores, and entered the A-share market in 1996.
The storm is coming and the wind fills the building.
Nanning Department Store 's 2019 was not going well.
Image source: Baidu Encyclopedia
Equity dispute: The competition for controlling stake in Nanning Department Store Building Co., Ltd. (hereinafter referred to as " Nanning Department Store ", SH.600712) has not stopped.
Since Nanning Futian Investment Co., Ltd. (hereinafter referred to as "Nanning Futian"), a subsidiary of Baoneng Group, successfully won 94.21% of the equity of Nanning Department Store html. The company's stock price began to hit the daily limit continuously and finally achieved 9 consecutive rounds.
Image source: Hexun Stock
was sued for liability of 5.7 million yuan: On December 13, 2019, Nanning Department Store was sued by the other party for a contract dispute with Guangxi Weimao Trading Co., Ltd. and was sentenced to compensation of 5.67 million yuan. In addition to the case acceptance fee, Nanbai Supermarket has a total debt of 5.7 million yuan, which may have a negative impact on the profits of this period.
profitability has been weak for a long time: According to the third quarter report of this year, Nanning Department Store achieved total operating revenue of 1.351 billion yuan in the first three quarters, a year-on-year decrease of 13.26%, and has declined for four consecutive reporting periods.
unicorn mall compiled based on public data
Since 2016, Nanning Department Store has maintained a total operating income of over 2 billion yuan, and its net profit loss was serious, with a maximum of only 1.77 million yuan.
was sniped by the Baoneng system, making a profit of less than 10 million yuan, and the subsidiary lost the case. Nanning Department Store 's future is uncertain.
Count the major events of the department store in 2019. Along the way, old department stores have either been sold and withdrawn from the stage, or actively transform or passively to actively survive.
survived and became everyone's common goal.
The still alive department store
How to survive
Looking at the department store industry for more than 20 years, there are roughly the following stages.
Now, department stores are in the recovery phase.
However, if the specific implementation is implemented, how should the living department store recover? How to survive?
Image source: Internet
Small mall has sorted out the opinions and opinions of industry insiders and discovered the following 6 aspects of inspiration.
① The number of stores is becoming saturated;
② The performance of a single store is limited to growth;
③ Management services encounter bottlenecks;
④ Attractiveness to consumers is declining;
④ l0
Strengthen store adjustment and operational efficiency
China Department Store Business Association President Fan Jun said that the department store industry is facing practical problems such as bottleneck resistance, continuous increase in cost pressure, lack of competitiveness in commodity prices, and improvement of core capabilities. Only by strengthening store adjustment and operational efficiency can we truly achieve comprehensive upgrades.
Shanghai New World Damaru Department Store is a typical case of successfully achieving transformation and upgrading through store adjustments. Today, Daimaru Department Store's annual turnover exceeds 2 billion yuan, and has successfully ranked among the top four Shanghai department stores.
Image source: Baidu Encyclopedia
Department Store As a relatively traditional retail format, the fact that it lacks competitiveness compared with the Internet of Things e-commerce platform cannot be ignored.
Under the impact of e-commerce, the transformation of department stores is imperative.
However, facing the impact of e-commerce, compared with tit-for-tat, department stores and e-commerce can completely turn wars into pleasing. In the era of e-commerce consumption, strengthen the integration of online and offline, embrace new retail, and successfully achieve transformation.
Image source: NetEase Retail Frontier
For example: Suibao Department Store chose to hold hands with Alibaba to survive.
- In June 2018, Suibao announced that it had entered into a strategic cooperation framework agreement with Alibaba's Hema Technology for Hema Fresh Supermarket. Within two years from July 1, 2018, Suibao Supermarket will be transformed into Hema Fresh Supermarket in three stages. The transformation is now showing results.
- Suning.com officially acquired 37 Wanda Department Store stores and will officially rename it to Suning.com Plaza, which is to build it into a smart retail plaza, build a department store retail format with full online and offline scenarios, and provide users with a richer digital and scenario-based shopping experience.
Focus on experiential consumption
At this stage, domestic post-95s and 00s are increasingly pursuing a comprehensive shopping experience and a fashionable lifestyle.
department stores should be committed to creating diversified business formats and experiential consumption scenarios with consumers as the core, introducing elements such as parent-child, IP, art, culture, entertainment, catering, technology, etc., creating a new experience and stimulating the desire for consumption.
Image source: Sohu Focus Haishi Shenglou
According to a survey by China department stores, up to 77.9% of department stores have added experiential consumption elements to physical stores, nearly 40% of department stores’ experiential consumption accounts for 10% or less of the overall retail area, and nearly 30% of department stores’ experiential consumption accounts for 11-20% of the overall retail area.
5. Rational, high-end quality, professional, multi-channel and private brand
With the great integration of online and offline, rational, high-end quality, professional, multi-channel and private brand are the inevitable trends in the future development of department stores.
In addition, in the new era of consumption, consumers have increasingly high requirements for goods and services, and are paying more attention to the cost-effectiveness of goods. Under this trend, traditional department stores actively develop their own brands to form differentiated brand identification.
Image source: Internet
For example: Wangfujing Group has developed its first private brand "jingpin", covering preferred home furnishings and fashion-free classic clothing and accessories, and operated in its "Shangfu" collection store.
New World Group has also continued to increase its own brand business and has actively expanded its subsidiaries in recent years. N+ series and LOL (Love • Original • Life) original life concept store, creating a multi-format self-operated business layout and further implementing differentiated operations.
department store located in the residential living area. Transformation into a community-based shopping center is also one of the main directions of department stores transformation, in order to better meet residents' needs, seize residents' consumption points, and regain their vitality.
The traditional department store has been transformed into a community-based shopping center, and it must show obvious advantages in convenience, product positioning and supporting services. At the same time, it must also expand in experiential consumption to better differentiate in shopping centers in commercial areas.
Image source: Baidu Encyclopedia
For example: Retail giants including Tianhong Group are leading this trend. Songrui Tianhong, the first community life center under Tianhong, combines new business formats of family retail, neighborhood catering, life services and children's play facilities, forming a brand new community department store.
2020 is coming, how long will it take for department stores to meet spring again?
At present, China Department Stores each has its own transformation methods, and the results of the transformation need to be verified by the market.
In the future, new consumption, new business, and new models will trigger new department stores, and those who survive will be strong.
Image source: Maiqiu Commercial
Can the Chinese department store industry return to spring?
Do you know which department stores don’t live well?
Are you optimistic about the current transformation and development of department stores?
How long does it take for department stores to return to spring?
Welcome to leave a comment~
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