Wangfujing Department Stores Stripped Losses To Accelerate Pformation And Upgrading Plan

Following last year's shutdown of Wangfujing department store in Zhanjiang and Zhuzhou, yesterday, the Fushun branch of Wangfujing Department announced that Fushun Wangfujing department store officially closed in July 29, 2015.

For the reasons for the closure, Fushun Wangfujing explained that it was out of group strategic adjustment.

It is reported that in 2014, Wangfujing reported that the revenue of Wangfujing department store was 18 billion 277 million yuan, down 7.64% compared to the same period last year, and net profit was 636 million yuan, down 8.36% compared with the same period last year.

In fact, the fate of Fushun's Wangfujing shop was closed from last year.

At the Wangfujing shareholders' meeting held in June last year, the chairman of Wangfujing, Liu Bing, once said that for the department stores with poor performance, Wangfujing would consider closing stores.

Just last July 11th, Wangfujing department store in Zhanjiang was closed for losses.

According to the Wangfujing last year's earnings report, in addition to Zhanjiang shop losses, Wangfujing 100% directly holding department stores, including Wangfujing Zhuzhou store, Fuzhou store, Fushun store, Zhengzhou store, Jiaozuo shop, 5 branches are in a state of loss.

Today, Fushun stores may be closed only to carry out the plan - "whoever loses will be shut off".

For this shop, Wangfujing said that the operation of independent department stores under 40 thousand square meters and the investment in large-scale decoration and renovation were hard to get a good return on investment.

At the same time, Wangfujing's development strategy turns.

As well as outlets, no longer open department stores.

There are more than Wangfujing department stores on the stage of closing shop tides. According to the statistics of China Unicom, as of June 30, 2015, the total number of stores in China was closed by 25.

Among them, Wanda Department store was the first to close 10, Marsha's department store closed 5, Tianhong mall closed 3, Golden Eagle closed 2, far east department store, sunshine department store, Baisheng department store, Hua Tang shopping mall, Jinle department store closed 1.

Peeling

At the same time, Wangfujing is also accelerating its pformation. Apart from the pformation from department stores to shopping centers and the offline strategy of the outlets, Wangfujing attaches great importance to online business.

According to statistics, 2014

Electricity supplier business loss of 42 million 68 thousand yuan.

Nevertheless, Wangfujing department stores did not slow down the "net" step. In November last year, Tmall flagship store went online. This year, it actively pformed O2O. In addition, it also reached a strategic cooperation with Jingdong finance and launched "well brushes and white bars".