The Pain In The Department Store Will Continue After Birth.

The once popular department store industry is now in the cold winter of its performance. Closing stores and layoffs almost become synonymous with its industry characteristics.

Following

After 100 stores and 7000 employees will be laid off by WAL-MART, Martha, a 100 year old British store, announced 525 layoffs.

And from China

Just released in the report, the first half of this year, nearly 80% department stores listed company's performance decline, of which 6 loss.

The reasons for the decline in performance, whether foreign capital or local brand, are attributed to "no exception".

Environmental and consumer downturn "and" electricity supplier impact ".

Against this background, some layoffs have been closed down, cost reduction has been achieved, some have embraced the Internet, and some are trying to diversify.

However, some people in the industry say that no matter which kind of mode is groping, and there are very few successful cases now, the pain in the department store industry will continue.

Foreign capital brand depression

British department store chain Martha recently confirmed that in order to reduce the cost of the company and improve the comprehensive operation of the company, the company is preparing to lay off 525 people in London headquarters.

Martha's Department said that the layoffs would abolish redundant employees, reduce the number of outsourcing companies, and no longer recruit new recruits.

Martha stores said that the company is still committed to investing in stores and improving consumer shopping experience, so the layoff plan will not affect store employees.

In recent years, Martha has struggled between general retail and clothing sales, and its clothing sector has been hit by the weather and the depressed retail market.

At present, Martha stores have 468 stores in 58 countries. Although the company's marketing and international directors have said that Russia and China are the major international markets of the group, expansion in Russia and China has to slow down temporarily in the face of the sluggish fashion retail environment.

Before Martha's department store, WAL-MART, the biggest retailer, announced that 7000 employees would be laid off in the next few months, mainly in the backstage departments such as accounting and development receipts.

WAL-MART said that some logistical and technical support departments were too crowded, and the company's future layoffs would cover 4600 WAL-MART branches throughout the United States, which would last for several months.

Some of the employees will be given internal pfer options, engaging in more work with customers, promoting sales and maintaining the store.

It is understood that most of the 7000 employees are long-term employees and are often the highest paid employees in the stores.

In January 15th of this year, WAL-MART said it would close 269 stores around the world.

People in the retail industry say that all the actions of WAL-MART are nothing but to reduce costs and improve performance.

WAL-MART's 2015 earnings report showed that the company's revenue fell 0.7% in fiscal 2015, which is the first annual sales decline since 1980.

In addition, Messi stores also announced that it will close 100 stores before the beginning of 2017, because the company has suffered a decline in revenue for 6 consecutive quarters, forcing it to shrink the front line.

Local brand winter

The brand of foreign brands is bleak and the performance of local brands is also bleak.

From the semi annual report that has just been disclosed, 49 department stores in Shanghai and Shenzhen two have achieved operating income of 234 billion 640 million yuan during the reporting period, basically unchanged from last year. The total net profit was 6 billion 35 million yuan, down 17.32% compared with the same period last year.

Specific to the company, the 49 department stores listed companies in the first half of the year, there were 37 net profit slipped, accounting for 75.55%, of which Nanning department store net profit fell by 481.19%, and the net profit of China 100 group, Nanjing new hundred, Hualian Union and friendship group declined by more than 200%.

As for the 5 fold drop in performance, Nanning department store said: "apart from the weak consumer market, intensified channel competition and the impact of the electricity supplier, several main stores in Nanning have been affected by the construction of subway projects."

It is worth noting that since 2013, Nanning department stores have basically interpreted the reasons for the decline in company performance.

Of the 37 listed companies whose net profits fell, there were 6 companies in a state of loss.

Among them, Nanjing lost 268 million yuan in the first half of the year, and the loss amount of friendship group, *ST mall, Hualian Union supermarket, China 100 group and Nanning department store were 93 million 784 thousand and 600, 78 million 215 thousand and 900, 70 million 424 thousand and 600, 62 million 455 thousand and 600 yuan and 5 million 152 thousand and 600 yuan respectively.

Nanjing new hundred said that the loss of listed companies is mainly affected by the downward impact of the global economy, the loss of HOF of the British subsidiary, and the company is still in a loss for the first three quarters.

Self help: most embrace the Internet

In fact, since 2011, the sales performance of China's major department stores has dropped sharply, and now it is a sharp drop.

This is a phenomenon that has never been seen in the past 20 years. The increasing electricity market has eroded the share of traditional department stores, and sales of department stores are also the fastest growing category, such as home appliances, IT products and clothing.

Some analysts have pointed out that the traditional department stores will become the next physical bookstore, and disappear in the streets.

Under the impact of the electricity supplier, it is not always a long way to close the store at all times. The top priority of the department store is to think about the new business model.

Because of the crisis, the global department stores have started to save themselves.

In addition to the cost saving practices such as WAL-MART, Messi and Martha, such as layoffs and layoffs, "embrace the Internet" has become the first choice for major department stores.

According to incomplete statistics, more than 90% of the department stores are now selling online, offline, and full channel sales. Among them, WAL-MART acquired the remaining 49% stake in shop 1 last year, and achieved a wholly-owned holding of shop 1. The Department of LVL bought BazarChic, a French fashion business.