The Department Stores Must Face Harsh Realities.

For consumers, "one-stop shopping" and "attractive price" were two prominent core values of the department store industry. The emergence and vigorous development of electronic business greatly weakened the two core values of department stores. On the electronic business platform, consumers could instantly complete the search, functional cognition and price comparison process. At the same time, in the face of low price bombing of e-commerce, traditional department stores often use promotional discount, buy gift, full increase and so on.

For this reason, in the past eight years, the sales of electronic business increased from 1.2% to 2014 of 10.6%, and the turnover reached 2 trillion and 800 billion, accounting for more than 2% of the top 100 retail chains. The vigorous development of the electricity supplier has quickly occupied the market share of the department store industry.

Based on the TOP30 list of department stores' Listed Companies in 2014, except for Wanda, department stores, Tianhong and Nanjing Xin Bai 12, the annual sales and profits of 18 department stores have declined to varying degrees. Among them, sales of Parkson and Wangfujing have dropped by nearly 8%, while Jin Ying's store has dropped by nearly 6%. The performance decline in 2015 is even more evident. In the first half of the year, according to the iziRetail sample survey, 60% of the department stores in the country were in a state of decline.

Bad business performance, this year's department store industry Guan Dian Like tide. In 2013, there were a total of 24 well-known traditional department stores, including 2 Baisheng, 2 oceanic, and 2 Tianhong stores. In 2014, there were a total of 23 well-known traditional department stores, including 4 Baisheng 4 families, 3 households in China and 3 in China. Compared to the previous two years, the first half of 2015, the number of well-known traditional department stores has reached 25, of which 10 are Wanda Department stores, 3 of Tianhong, and Martha is 5.

In the context of the development of urbanization, some housing enterprises ahead of schedule. Commercial real estate At present, China's commercial real estate scale has ranked first in the world. Last year, among the newly built shopping centers in the world, China accounted for nine of the top ten cities, and more than half of the shopping centres built around the world came from China.

However, due to the inadequacy of operation and consumption, the vacancy rate of commercial real estate in many large and medium-sized cities and even three or four tier cities in China has gradually increased, and the phenomenon of commercial real estate surplus has become increasingly evident.

Under such circumstances, the operating costs of enterprises are still increasing. Rent and labor are the biggest cost items in department stores. In recent years, the average rental cost of the top 100 enterprises has increased by about 30% in recent years, and the average labor cost has increased by 15%. This is indeed a great challenge to the average retail rate of 2%-3% in the retail sector.

However, the decisive factor in the traditional department store industry's dilemma today is not the development of the electricity supplier, nor the rapid growth of the cost. The lack of experience and the need to stay away from demand are the fundamental reasons for the dilemma of the department store industry.

First of all Efficiency management Under the mode, traditional department stores are better at "planning" the inner business area, and every shop is constantly thinking about how to fill the brand in the limited operating area, even at the expense of constantly reducing the public access, shopping in the crowded place of the brand, the consumer experience is very poor.

Secondly, traditional department stores rely mostly on investment brands to attract consumers to come to the market. The long-term "two landlord" profit model has made the Department Stores operators have not been greatly improved in terms of consumer demand management capabilities, consumer experience optimization capabilities and commodity management capabilities. Neglects to cultivate its own core competitiveness, lacks the ability to integrate the brand, and relies on the advantages of the business circle. The department store industry is hard to resist external competition.