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The Impact Of The Electricity Supplier'S Impact On The Overall Crisis Of Parkson Slipping Department Stores

2013/5/27 19:14:00 20

Under the impact of e-commerce, high-end department stores and one-stop shopping centers, P, Baisheng group, one of the first foreign department stores to enter China must also make changes.

People have heard a lot about the impact of traditional P department stores, but it might be more impressive if it happened in the Parkson group.

Less than P, Malaysia's Golden Lion Group and its main business in Baisheng commercial group, which is located in the Chinese market, has almost nothing to please investors in the latest first quarter 2013 earnings report: the total sales amount of Parkson's total sales is 4 billion 973 million yuan, which is only 2.1% higher than that in the same period last year.

In addition, the same store sales decreased by 2.8%, the gross margin of commodity sales decreased by 0.7% to 17.3%, and the total operating profit dropped by 26.5%.

When P released its 2012 annual earnings report in February 2013, this sign began to appear.

The department store, which currently owns 55 department stores in China, has seen its first profit decline since listing.

Of the 7 new stores originally scheduled for opening in 2012, 3 were postponed, while two stores in Hongqiao, Shanghai and Guizhou Phoenix were closed.

to further bring bad news to Parkson, it is the proportion of flagship sales that brought higher gross margin in the past, and began to decline in the overall sales proportion of Parkson group.

At this time, the proportion of new shops that need to be trained is on the rise, and they often lose money.

The "P" Parkson encounter is the epitome of the overall crisis of domestic department stores.

Zhang Jiapeng, executive director of the real estate operation service and Rui Yi De Beijing, has a view that "the new generation of consumers rarely go to department stores again, and they prefer shopping centers."

Less than P, compared to a shopping center with large restaurants and leisure places, Baisheng, a pure shopping function, can hardly meet the needs of younger generation of consumers.

Of course, Zhang Jiapeng also mentioned e-commerce. On this issue, the impact of traditional department stores is more obvious: because there is no pleasing shopping experience, department stores lose most of their attractiveness.

Shen Jun, general manager of Shanghai ruiyong enterprise Cci Capital Ltd, is more convincing.

She told reporters that when she worked for women's jeans brand Miss Sixty 3 years ago, she no longer regarded Parkson as the preferred channel.

"Parkson's positioning is in the middle and low end, while the high-end brand will only consider entering Parkson as a supplementary growth point under the premise of more mature development."

She said.

At present, Shen Ping's positioning of high-end brand customers, is no longer considered into Parkson.

In 1993, Parkson opened its first store in Fuxing gate, Beijing, as the first foreign retail enterprise to enter China. It was the first store in Beijing to introduce the ten largest cosmetics brands in the world at that time. P

But 20 years later, despite the caliber of Parkson's external publicity, it is still a "high-end high-end department store", but the brand that actually stores in the store is hard to integrate with this caliber.

"at present, Parkson has no competitive advantage compared with other shopping malls.

Moreover, the sales of these low-end brands themselves are not good, and they also directly affect the performance of Parkson.

Shen Jun said.

this is also the main reason for Parkson closing the Hongqiao store in Shanghai in 2012.

According to Shen Jun, at that time, Hongqiao Shanghai City, the owner of Baisheng Shanghai Hongqiao store, hopes to build the shopping center and the three phase Shanghai city developing into a large high-end shopping center with a volume of nearly 100 thousand square meters. However, Parkson has seen a lower positioning which does not meet the owner's plan.

So when the ten year lease expired, the owners concluded their cooperation with Parkson.

And Parkson opened a new store near Tianshan Road in advance one year, which concentrated on Huijin department store and Hongqiao Tiandu shopping mall.

At the same time, the sales decline of P and the location cause is the rising rent and manpower cost of Parkson.

According to Parkson's 2012 earnings, the cost of Parkson's employees increased by 28.4%, and the growth of rental expenditure reached 34.8%.

The reason for the substantial increase in rental costs is mainly the increase in the rental of a group of shops that are due to lease.

"now most shops in the market are renewing the lease, and the owners' expectation of new rent is almost doubled."

Zhang Jiapeng said.

Since Parkson has entered the Chinese market earlier, it will continue to face the problem of rentals arising from the renewal of the lease, which will result in a long-term squeeze on their gross margins.

P, Parkson, wants to make some changes. Directly challenging those high-end department stores doesn't seem to be the best solution.

The price of people's goods also has its own market, and the key problem has become how to find those projects that can bring higher gross profit.

July 2012, as Baisheng flagship store in Shanghai, Baisheng Huaihai store has made a preliminary attempt to rebuild the 1 layers and 7 layers of the 8 floors, which has improved the catering proportion.

Since the beginning of May this year, the other 1 to 6 floors have begun semi closed shop pformation.

Shen Jun revealed that after the pformation, Baisheng Huaihai store will expand the original cosmetics category, increase the proportion of food and beverage, and select "a target=" _blank "href=" //www.sjfzxm.com/ "clothing" /a "brand to improve some overall grades.

In terms of business mode, the Parkson Huaihai store will no longer use the counter mode of department stores, but will be more like a small shopping mall.

these changes in traditional department stores are not uncommon among Parkson's counterparts: the shopping center K11, the main shopping centre of the art space opened on Huaihai Road, and the trade fair IAPM, which will soon be opened, are not far from Baisheng Huaihai. The latter is separated from Baisheng Huaihai store by only one street.

The strategy put forward by IAPM is "main night leisure consumption", targeting young people aged 19 to 35, and has attracted international brands such as Prada, Miumiu, Tod 's and D&G.

"in fact, if the Baisheng Huaihai store begins to change a year earlier, the space can be much larger.

At that time, everyone's expectations for IAPM were uncertain. If Parkson could take the lead in making changes, it would not be IAPM taking her away today, but Parkson took IAPM away.

Shen Jun said.

In 2011, the Pacific Department Store began to relocate after being temporarily withdrawn from the Beijing market due to poor management, and was ready to return to the shopping center format. P

And local department stores such as golden eagle, Maui and Yintai are also trying to pform the business model of shopping centers.

P, a Parkson, has launched a hierarchical management of its stores a few years ago. According to its turnover and profit margins, it has been divided into two categories: "Jin Baisheng" and "silver Parkson". The location of better stores has been upgraded; at the same time, the proportion of supermarkets, restaurants and cosmetics has been highlighted for new stores and pformed stores.

However, according to the industry's view, because of the lack of obvious differentiation among different locations, the plan has not been effective.

Less than P, just a month ago, Parkson announced that the 69 year old founder, Zhong Tingsen, will be re established as executive director and chairman of Parkson group in May 31st.

Zhong Tingsen founded Malaysia Parkson in 1987 and extended the business of Parkson to China in 1992.

Before this personnel change, this position was held by Zhong Rongjun, his nephew.

According to the original plan, Zhong Tingsen's non-executive director's contract will not expire until November 2014, which reflects the mood of Yum.

Although he has not yet formally announced the future development plan of Parkson, he must begin his action immediately.