Offline Department Stores To Buy Electricity Providers Integration Return To Profit Based Thinking

Recently, Hudson Bay Company (Hudson 's Bay) bought Geert, a discount store in the United States, which pioneered flash shopping, and brought it into the discount store at Fifth Avenue, Fifth Avenue (Sakes Off Fifth).

At the beginning of the year, DSW, a famous shoe discount shop, bought a discount e-commerce website Ebuy and launched international distribution.

Compared with the self operated e-commerce business, the acquisition of the mature Ebuy has greatly reduced its difficulty in launching the international logistics service.

Retail companies, who are in the white hot competition stage, realize that full channel retailing has become the basic expectation of consumers in the Internet era.

The retail survey released by Forrester Research in mid February showed that 68% of the surveyed department stores increased investment in e-commerce technology from 2014 to 2015, and will continue to increase investment in 2016.

Nodes Tron is a high-end fashion retail companies headquartered in Seattle, USA.

There are 115 stores in the United States, 167 discount stores, and 2 stores in Canada.

In the full channel sales, Nodes Tron's strategy and continuous investment has been the benchmark in the industry.

There are two perfect online sales channels: low and medium end line Nordstromrack and high end line HauteLook, which supports free online shopping in the US, online ordering stores, and free return.

Last July, Nord worked as an integrated designer for users.

Trunk Club, which broadens the resources of the trunk club club, has drained consumers of the trunk club to Nodes Tron's offline store.

In August, special shopping channels were opened to fans on Instagram.

During the Christmas shopping season, eBay worked together to launch touchscreen fitting room technology.

5 years ago, online sales accounted for only 8% of total sales. As of January 2016, online sales accounted for 20% of the company's total sales.

However, in the fourth quarter of February earnings conference in February, Michael G. Koppel, the chief financial officer, said: "the continuous investment in science and technology, the cost of marketing and the cost of implementation have made the cost of expanding our market share too high.

In recent years, the cost growth has far exceeded the sales growth rate.

From January 2015 to January 2016, the company's operating costs increased by 10%, leading directly to the company's profit falling to $600 million, down 17% from the same period last year.

Although Nodes Tron has spent hundreds of millions of dollars in e-commerce related technology in recent years, a large part of the inventory management system and distribution personnel management has been applied. In the fourth quarter of 2015, the inventory growth rate (12%) is still higher than the sales growth rate (5.2%), while the fourth quarter profit has dropped by 29.4%.

A week after the meeting, Nord laid off the top 10 technical teams and said he would control the scale of e-commerce projects.

Although the inventory management will continue to be optimized through technology investment in the future, inventory will be able to simultaneously meet the expansion of stores and the growth of online sales.

However, the planned 1 billion investment for technology in 2016 will be reduced to 900 million, and the total technical input of the 5 year plan will be reduced by 300 million.

Increasing investment turn

Sales at the same time, the old department stores have no exception to choose to close the performance of flat shops to reduce operating costs under the line.

Turnover, operating costs, and other stores nearby are all considerations.

Last year, Messi stores closed 40 stores with poor performance.

Sears (SEARS) plans to close 50 physical stores this year, and more than half of the 1253 entities in the company will expire in five years.

Cole, based in Wisconsin, will close 18 stores this summer, the first time that the company has closed so many 52 years since its establishment.

In a recent study by BDO USA, an audit firm, 37% of respondents were interviewed.

After the strategic investment in the Internet and mobile terminals between 2014 and 2015, 2016 will increase profits by reducing inventory and adjusting product and store structure.

In the Internet era, consumers use time more efficiently than before.

Jesse Pani (J.C.Penny) adjusted the placement of the store products.

"We want our customers to find the clothes they want as quickly and as quickly as possible."

In addition, we began to learn from the supermarket mode and began to provide trolleys and baskets in some hundred stores.

Colls's physical stores will reduce 10% inventories.

At the same time, 7 additional experimental entities will be added, which will be less than 1/2 of the traditional stores. The inventory will reduce the hot sales of online sales, so as to complement the products on the line.

In 2015, Messi store opened 6 discount stores, Backstage.

The discount store has its exclusive brand and Messi store's original price store brand, and its price is in the 20%-80% of the original product of Messi department store.

This spring, Messi stores will try the concept of "shop in store" and set up a 15 home in the existing stores. This attempt can also test the extent to which discount stores will divert the sales of original department stores.

In order to improve unit profits, Nord hopes to improve the profit by adjusting the price matching of different prices.

Nord, a first-rate brand in Waterloo in 2015, is considering replacing his own brand with sales rising.

If it has been established for only three years, there has been a turnover of 50 million dollars for Tucker + Tate.

At the same time, Nord will further develop brand specialization, such as MadeWell, the flagship of the female Hippie cowboy, to attract more iron powder.