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The Downturn In Physical Retailing Led To Difficult Business Operations.

2016/5/15 14:52:00 40

Real EconomyRetail IndustryBusiness Strategy

Faced with multiple shocks such as rising operating costs and the rise of Internet consumption, Guangxi's traditional retail industry is showing signs of weakness. Sales decline and losses are spreading in traditional retail formats such as department stores and supermarkets. Is it a closed shop or a factor upgrading? Is it a multi format fusion development or an initiative to embrace the Internet? Guangxi tradition. Retail We are actively exploring ways to transform and save ourselves.

According to statistics, at present, there are 3.6 legal person retail enterprises in Guangxi (including below the quota), which are divided into supermarkets, department stores, convenience stores, specialty stores and online retail outlets. In 2015, the total retail sales amounted to 574 billion 750 million yuan, accounting for 90.6% of the total retail sales of consumer goods, and the main force to support the growth of the consumer market.

According to the monitoring data of 65 key large and medium-sized department stores and supermarket enterprises in the region, 42 enterprises with negative sales growth accounted for 65% in 2015, and the negative growth rate of large department stores was over 70%. During the "May 1" holiday, the Guangzhou friendship store quietly pulled out of the Nanning market when it launched a sales promotion campaign at all major supermarkets.

Occupy Nanning In the prime location of the first high-rise building, Guangzhou Friendship Store insists on taking the high-end department store route, where many international first-line brands are stationed, which is a gathering place for luxury consumption in Guangxi. However, after entering the Guangxi market for 9 years, Guangzhou Friendship Nanning shop seems to have been very warm, and it has become more and more popular in the past two years. A salesperson of a brand counter told reporters: "business has not been very good. In the past two years, influenced by the economic environment, it has been even more deserted."

In the face of closing down, some netizens exclaimed: "the friendship store on behalf of the tall person is very high, and the threshold is very high. It is seldom entered, and the consumption level is not enough." "the retail price of the products is not low, and the number of people is very small. It is really too quiet to go out in a circle." "the service here makes people feel very warm, and there is free WiFi. You can browse online, and the shopping environment is much more needless to say. Unfortunately, it is gone now."

From two years ago, Paris Spring Department Store pulled out of the Nanning market, and now close to Guangzhou friendship mall, and Guangxi's high-end department store industry has been shrouded in "low pressure". From the national perspective, the benefits of large scale department stores' super traditional retail businesses are decreasing, and the phenomenon of closing shop stops is common. In 2015, the main retail business statistics of the major retailers in 2015 showed that after the 201 stores in 2014, there were only 138 major supermarkets and department stores in the country. The average operating period of the closed stores was less than 5 years.

Over the past two years, Guan Dian tide has begun to spread to the retail industry in our region. Since the second half of 2014, chain stores, convenience stores and department stores have been seen in our district and spread to this day. According to incomplete statistics, in 2015, there were 36 major supermarkets and department stores in our district, and fewer than 15 newly opened stores. Especially in Hezhou, 3 large department stores and supermarkets were closed in two months.


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