Parkson Stores Four Stores In One Year In China

After closing the Guiyang flower shop in June, the reporter only learned about two months later. Parkson It will close the store in Shijiazhuang on the 31 th of this month, which is the fourth store that has been closed by Baisheng, one of the first foreign investment shops in China. In the first half of the year, Parkson fell behind many peers' transcripts, which meant that even if we had led Baisheng to the brilliant founder, it would not be easy to escape from the current development slough.

Parkson's statement to consumers shows that due to the strategic adjustment of development, the company decided to formally close the Shijiazhuang store since August 31, 2013 and terminate its operation from September 1st. According to a person familiar with the matter, closing the Shijiazhuang store was a decision made by Baisheng suddenly a month ago, which made Baisheng Shijiazhuang's Wanxiang Tiancheng block somewhat unprepared. At the same time, this allows Parkson to continue in China Customs shop.

Analysis from the North Business Research Institute shows that there is still a bigger crisis behind the Parkson store. According to a person familiar with the matter, Parkson has become a hot potato in Beijing. Because the passenger flow is scarce and the rent is not high, the new owner of the Parkson East four ring shop once wants to reclaim it. In May this year, in order to restore the momentum, founder bell Jensen reopened Parkson and immediately made a series of adjustments to small and medium-sized stores. However, from the interim performance report released by Parkson, the effect of the self rescue strategy is not obvious. Parkson's interim results show that the group's sales volume is 8 billion 979 million yuan, an increase of 4.9%, gross profit margin decreased by 0.8%, and operating profit decreased by 32%.

Among them, Parkson new store's losses in the first half of the year amounted to 59 million yuan, Sun Palace and so on. Market The downturn is also a microcosm of Parkson's decline in China in recent years. Since 2007, the performance of Baisheng, the first foreign capital store, has started to decline. Parkson sales increased to a peak of 86.5% in 2006, and declined in the next few years. Parkson encountered the first net profit decline in the past eight years, and sales increased by only one digit. This is obviously different from the performance of domestic giants such as Wangfujing department store.

Guo Zengli, director of China's shopping center industry information, looks at Parkson's early days in China. department stores Foreign brands, such as Baisheng, have developed rapidly. However, with the emergence of a large number of department stores and shopping centers, Parkson did not make too many changes to cope with the new competition pattern. At the same time, the new world, Wangfujing department stores and so on have compressed the retail area and increased the proportion of catering.

Liu Hui, a business expert, believes that the location of Parkson is not prudent, which leads to the lack of location in many stores. "For example, the Parksun Sun Palace store seems to have convenient transportation, but it is hard to find a shopping mall entrance."

Guo Zengli suggested that the department stores and shopping centers are now facing fierce competition and the whole industry tends to be meticulous. Parkson should adjust its stores and make clear the positioning of customers and take a more focused and more subdivided route. Guo Zengli believes that, according to Parkson's current business situation, it is difficult to rely on their own strength to restore the prestige. "Parkson can use its external force to link up with other commercial projects in the business circle to form a scale effect and enjoy the flow of passengers."

Reporters learned that the Parksun Sun Palace store three floors are planned to connect with the "new neighbor" Aegean Sea shopping center. Aegean Sea shopping center will be based on experiential format, no longer set up department stores, cosmetics and other formats. Lai Yang, Secretary General of Beijing Institute of business economics, believes that relying on neighbours' catering and entertainment formats can make up for the lack of experience in Parkson's experience. Parkson can serve as the "main store" of the business circle and create business atmosphere with the surrounding large-scale commercial projects.