Chengdu Department Store: The Main Reason For Sales Decline

According to incomplete statistics, as of January 1, 2015, the number of famous department stores in China was 20.

Data from Sichuan chain business association also showed that since 2014, there have been 7 stores in Chengdu.

Why do these stores choose to close their stores? The most important reason is the continuing expansion of business problems.

The 2014 annual report shows that a total of 18 projects, including the Chengdu lemon land Plaza project, failed to meet their business performance in 2014.

The relevant people have pointed out that Chengdu's market competition is fierce, and regional distribution is difficult to share with the supplier resources and brand value of the company's dominant region.

Coupled with the first quarter of this year,

Total profit fell by 11.66% again, and it was still difficult to turn around this year.

At the same time, despite the sales statistics of some commercial projects in Chengdu in 2014, Chengdu

Sales of 1 billion 620 million yuan in second place, but the popularity of Shang Tai Department Store is not strong.

Reporters interviewed found that even at noon break time, there were not many people shopping here, and even many shops and counters failed to open all morning.

Although department stores were once the most important shopping places for urban consumers, the department stores could be described as "external difficulties" under the "attack" of a one-stop shopping mall dominated by the business mode of eating, drinking, playing, traveling, shopping and entertainment.

In a report on the review and outlook of Chengdu real estate market in the first quarter of 2015, CB pointed out that the market challenges faced by the industry continue to be severe because the shopping experience and shopping environment of traditional department stores can not meet the "one-stop" consumption concept.

Under the impact of landmark shopping centers, the popularity of some department stores has gradually declined, and some high-end department stores are also facing the risk of first-line brand exit.

And its related research on the development trend of department stores also shows that over the past few years, China's department stores are no longer in sight, sales growth is exhausted and profits are deteriorating. The overall business situation is not optimistic.