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Department Stores Can Not Escape The Vicious Circle Of Increasing Profits But Not Increasing Profits.

2013/9/18 22:10:00 12

Department Stores Promotion Holiday Economy

in the holiday economy, the traditional retail industry staged a low price promotion war, and the intensity was more vigorous than the first half.

Shopping malls in Guangzhou, such as Guang Bai department store, Tianhe City, < a href= "//www.sjfzxm.com/news/index_c.asp", "modern department store" /a, and so on, have launched various kinds of low price promotion activities.

"there will be more promotion and greater intensity in the second half of the year."

In general, in general, from the Mid Autumn Festival to the end of the year, it is the golden period of marketing promotion, but in view of the long slump in the traditional retail industry, the promotion will be more powerful than in the past years, in view of the long slump in the traditional retail industry.

"such a large sales promotion is reflected in the overall performance of enterprises, that is, no increase in profits."

Insiders of a retail listed company say that the main purpose of retailers' discount is to attract popularity and boost sales.

"But over time, this will bring great challenges to the next step of the department store operation."

"a pair of shoes of 600 yuan, after playing half off in our store, plus 300 yuan for shopping mall to send 200 yuan discount, this pair of shoes is only 100 yuan."

A shopping guide for women's shoes in Tianhe store, Guangzhou Department store.

"in previous years, some of the seasonal products were generally discounted, like this year, there is little discount in the whole field."

The salesperson said.

"although the discount sale of shopping malls is very strong, basically, businesses and shopping malls will not lose money, but only earn less, and the worst will be even."

A retail industry veteran said.

however, according to many industry insiders, although this year's discount sales promotion is greater than in previous years, and the duration is longer, the effect is not very satisfactory, and the attraction of discount sales is less and less attractive to consumers.

public data show that in the first half of this year, other than the retail sales volume of 879 billion 800 million yuan, an increase of 79.8% over the same period last year, other entities have dropped to double digit margins and below.

in the first half of this year, the revenue of Wangfujing department store grew by 10.61% over the same period last year, but the net profit attributable to shareholders of listed companies decreased by 3.6% compared with the same period last year. The business income of DQ shares grew 8.67% in the first half year, and the net profit attributable to the shareholders of the listed companies decreased by 5.37% compared with the same period last year.

from the distribution of profits, the "a href=" //www.sjfzxm.com/news/index_c.asp "department store" /a "gross profit margin fell by 0.82% compared with the same period in the first half of the year, while the gross profit margin was 0.85% lower than that of the same period last year, 13.7%.

"killing ten thousand enemy, self damaging three thousand", for traditional retail enterprises, relying on low price promotion to attract passenger flow is not a long-term plan for development.

For a long time, the industry has been debating whether to save itself from the pformation of department stores.

But this is not the case.

Li Baosheng, deputy director of Xinhua Department store, thinks that for most of the retail enterprises, the mode of joint venture is dominant, and it is not feasible to develop the self run business into a main mode at once.

at present, the business mode of Xinhua Department Store is 100%, and there is no intention of developing proprietary business for the time being.

Guo Zengli, director of the industrial information center, "P" > China a href= "//www.sjfzxm.com/news/index_c.asp" > shopping mall < /a >, thinks that the development of department stores to shopping centers and shops in the three or four tier cities is more practical than that of pforming enterprises into self operated enterprises at once.

in big cities, the number of competitors is not only large, but also the strength is almost the same. With the increasing operating costs of rent and manpower, the profit margins of traditional retail enterprises in the first tier cities have been continuously squeezed. In the two or three tier cities, they are faced with mainly small scale or weak regional shopping malls or wholesale supermarkets, which have more competitive advantages and larger market space.

Tianhong mall, Wangfujing department store and so on have extended their tentacles to two or three line cities such as Changsha and Nanchang.

Wangfujing department store's first half financial report shows that in the first half of the year, operating income in coastal developed areas such as Southern China fell by 12.53%, while in Central China and Northwest China, business income increased by a year earlier than that in economically developed areas, 19.34% and 21.53% respectively.

the situation of big business shares is similar. In the first half of the year, the operating income growth rate in Jiamusi and Fushun was much higher than that in the economically developed Dalian area.