Wangfujing: Traditional Management Practices

< p > the Wangfujing seems to lack some heat when stationing in the area of "a href=" http:// www.sjfzxm.com/news/index_c.asp "> expanding the layout /a.

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< p > "Wangfujing operators have come to us to discuss the problem of renting the site, but finally did not talk about it."

A project leader of a commercial real estate company in a second tier city in Guangdong said that Wangfujing had many ideas for entering the new area. However, it was not flexible in terms of business philosophy and operation cost control, and it was also more traditional. It was also inaccurate about the local consumption mentality, consumption habits and business needs, leading to the impression that people were "not grounded."

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< p >, he said, the two sides finally failed to negotiate because Wangfujing could not accept the "a href=" http:// www.sjfzxm.com/news/index_c.asp "rent" /a "level, the way of lease and the owner's positioning of the business operation mode.

He pointed out that department stores had no advantage of being sold by merchants' hands in the same year, and now it is hard to "take care of themselves". Many shopping centers and shopping malls no longer consider introducing department stores.

"If you take a high attitude again, it will be difficult to keep up with the changes in the environment."

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< p > industry insiders point out that the biggest difficulty faced by a href= "http:// www.sjfzxm.com/news/index_c.asp" > retail enterprise < /a > is the increase of operating cost, including rental cost and labor cost.

Among them, the rising cost of rent has become an unbearable burden for many retail businesses.

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< p > Shen Wan research shows that in 2013, the sales cost of Wangfujing increased by 19.81% compared to the same period in 2012, the largest increase in key financial indicators, while the sales cost accounted for more than 30% of the rental fee, up 25.88% in 2012.

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In a report by CITIC Securities in early 2014, reporters learned that the property owned by Wangfujing, including Beijing department store and Beijing Shuang an mall, was only 357 thousand square meters, accounting for 25% of the total property area.

In fact, nearly 70% of property depends on leasing.

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< p > it is understood that the majority of the department store industry in the expansion of the form of leasing, its advantages are rapid expansion and relatively low cost.

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< p > when Zheng Wanhe, chairman of the Wangfujing department store group, said earlier that Wangfujing had low liabilities and almost no bank loans. The market downturn was relatively low for the expansion of enterprises.

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< p > earlier, Liu Bing, chairman of the Wangfujing, said in a media interview that Wangfujing now owns about 30% of its property.

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< p > Liu Bing said at the shareholders' meeting in June 20th this year that the format of traditional department stores needs to be pformed and pformed. The mode of shopping centers and department stores supplemented by Wangfujing will be implemented.

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< p > our reporter learned from Wangfujing department store that the Wangfujing shop in Jiaozuo is about to open in August 18th. There are 2 shops in Luoyang, 2 shops in Changsha and shopping centers in Zhengzhou, which are already in preparation.

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< p > in fact, Wangfujing is currently in the contradiction between closing shop and opening shop. On the one hand, the poor sales of new stores are dragging down its performance, and on the other hand, the scale of new store sales is difficult to grow.

In addition to the loss of Zhanjiang stores, the 2013 annual report shows that the 6 stores in Zhuzhou, Fuzhou, Fushun and other places are in a state of loss.

Insiders say that there will not be any more loss shops being shut down in the future.

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< p > the management of a large department store pointed out that more than a year's closing from Zhanjiang store can also reflect that Wangfujing is changing, and it is relatively marketable for the new store's incubation period. It can quickly rectify and adjust the business after poor operation, and no longer repeat the practice of running a loss shop in the past.

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