Wanda Department Store: Is The Electricity Supplier Injured By Electricity?

There are four main reasons for traditional commercial department stores: first, the impact of e-commerce.

Supermarkets such as department stores are diverted from the consumer group, the economy is depressed, the consumption desire is also declining, and these department stores and supermarkets have not yet made prominent progress in the test water business. Two, the physical retail format has not been able to meet customer needs in a timely manner, and sales performance has been poor; three is strategic restructuring; four, the lease of housing has expired.

The fourth factors are almost negligible.

There are indeed some strategic structural adjustments. For example, Tianhong has opened new stores in Zhuhai and other places while closing Dongguan's Houjie stores.

The structure here is both

There are also urban layout and so on.

As of July 2015, there were more than 90 Wanda stores nationwide.

However, the opposite of its expansion is its operating condition: more than half of Wanda Department stores are in a state of loss.

Public information shows that Wanda's revenue reached 15 billion 490 million yuan last year, an increase of 39% over the same period last year, and only 91% of the adjusted plan was completed.

In addition, Wanda's net profit increased by 7% and its losses continued to expand. "Stop loss" became a top priority.

When shopping malls are becoming more and more popular in department stores, the Wanda Department store, which has completed its historical mission, has probably left its best choice from Wanda Plaza.

Although the development of electric business is really very fast, but in 2013, Taobao mall changed its name and Jingdong mall vigorously expanded the whole category before the electricity supplier was basically synonymous with fake goods and tail goods.

Moreover, in the proportion of less than 10% of the total electricity sales accounted for the total retail sales of the country, the proportion of the real threat to the traditional department stores is estimated to be less than 1%. After all, the price of the department stores is more than 500 yuan, which is the main consumer product.

It has been hovering around 100 yuan.

In the absence of too much innovation in the business model itself, Wanda has undertaken an important historical mission in order to cope with the rapid expansion of Wanda Plaza.

In the same rapid expansion, as a member of the department store, Wanda Department stores are hard to achieve refinement, differentiation and regionalization, not to mention the establishment of the highly viscous member management system in department stores.

First, the brand is not attractive; two, member management can not keep up, sticky is not strong; three, there is no innovation in business mode.

As a result, there is no need for the impact of the electricity supplier. Wanda's department wants to get a fast profit growth. It is also very difficult.

In addition, Wanda store has always wanted to go out of Wanda Plaza to others.

Expansion, but it is difficult to accept, closing and adjusting stores is also expected.

In the rapid expansion of Wanda Plaza, Wanda Department plays a role in delaying the pressure of large scale department store brand merchants, but it is facing the plight of weak growth and continuous losses.

If we do not combine the business of electronic commerce and department stores, the adjustment of Wanda Department Store is very difficult to achieve the desired effect.

At present, department stores have basically become the main battlefield of the two largest e-commerce groups, Alibaba and Jingdong (or Tencent), and will expedite department store category in the next five years.

Even the introduction of brand collection store in Wanda Department can not stop the consumption of goods on the line. The trend makes it difficult to achieve the profit of the Wanda Department store through the offline adjustment no matter how to adjust the line. If so, the electricity supplier will become the "electric injury" of Wanda.