Pacific Department Store Or Forced To Evacuate Huaihailu Road Property To Recover MALL

Recently, it was reported that Xintiandi commercial company was interested in the Huaihai Road

After the lease expires, the property is reclaimed and opened by itself.

On the Huaihai Road, the eastern commercial building is also undergoing a new round of adjustment and investment, pforming from the department store format to the shopping center.

Reporters found that because of the single format, similar goods and other reasons, the pformation of shopping malls in large department stores has become a trend.

Today, twenty thousand or thirty thousand square meters of small and medium-sized department stores are also beginning to pform into shopping centers.

Pacific Department Store: still want to continue to operate

A few days ago, Liu Mengjie, general manager of Shanghai Xintiandi commercial company, talked about the new world Taiping Bridge project. The project has not yet entered the in-depth stage, and it is possible to complete all the development in 2020.

She disclosed that the property of Huaihailu Road Pacific department store will be changed in the future.

"The market is changing so fast that there may be different things in two or three years."

Liu Mengjie told reporters, "last year, Xintiandi and North Li had begun to adjust.

This year, Xintiandi Nan Li will also start upgrading and upgrading.

In the future, there will be great changes in Huaihailu Road Pacific department store.

When the lease of Pacific department store in Ruian Plaza expires, we will take back the retail business area and do it by ourselves.

According to the reporter, the Pacific department store occupies two floors in Ruian square and 8 floors on the ground floor. It has long been an old department store in Huaihailu Road business district.

Now it seems that this once landmark project will be left behind.

As for what reason to take back the operation area of Pacific department store, Liu Mengjie said that the Pacific department store is still in operation, so it is not convenient to disclose too much.

The reporter understands that the retail area of the 25 thousand square meters in Ruian Plaza will be placed under the banner of Shanghai Xintiandi, and will be sold by Xintiandi. In the future, it may not be considered for the tenants of department stores. It is estimated that the main theme is to set up a theme oriented shopping mall.

The Pacific Department Store responded to the news of possible withdrawal from Huaihailu Road.

Su Boxun, general manager of Shanghai Pacific Department Store Co., Ltd., said that Huaihailu Road Pacific department store opened in 1997, the lease is 20 years, and will expire in 2017.

"We are still negotiating with the other side about the renewal of the Pacific in Huaihailu Road.

Xintiandi asked us whether we would like to rent after the lease expired. If we want to rent it, the rent should be renegotiated. If they do not rent, they will not find another home, but intend to reclaim the property and do business on their own.

For the Pacific, we definitely want to continue. "

East Commercial Huaihai store: department stores will be removed

If the future direction of Huaihailu Road Pacific department store is not yet clear, then another more than 20000 square meter department store on the road -- Huaihai store, Dongfang commercial building, has stepped out of the first step of pformation.

Recently, reporters learned from the Huaihai store of Dongfang shopping center, following the introduction of Wagas leisure food chain store on the first floor of the street, the commercial building recently introduced 4 restaurants brand into the five floor, namely, the Uncle 5 and the stove fish, the Savoy Dijia Thai food restaurant and the fragrant hotpot, and 3 of them have already opened.

On the four floor of the shopping mall, we have introduced the Wilson children's theme park, which is now being renovated.

Besides,

Still in touch with MUJI products, the future will be expected to open Muji global flagship store, occupying 3 floors of the mall.

People in Huaihai store, Dongfang commercial center, admitted to reporters that the market environment had a great impact on the sales of Dongfang commercial buildings in the past two years, forcing the mall to relocate and find a more suitable outlet.

"At present, the adjustment is being carried out step by step, and the introduction of food and children's theme park is the hope of promoting the popularity of shopping malls.

Of course, our department stores may gradually withdraw in the future, and the names of shopping malls may also change.

The adjustment will probably be completed by the end of this year, and there will be a whole new look. "

The above sources said.

Shanghai department store industry turned to negative growth period

In recent years, the days of department stores are generally not very good. However, many enterprises can only choose to close stores.

A statistics from Lian Shang network showed that in 2014, there were 23 stores in China, including 4 of Parkson Department stores, which became the largest department stores last year.

It is reported that since June 2013, Parkson has closed 7 stores in Guiyang, Shanghai, Shijiazhuang and Beijing.

Last year, the department stores that closed down the stores also involved Hua Tang shopping mall and Zhong Du department store (3 each), Shang Tai Department store, NOVO department store, Baole department store (2 each), and Wangfujing department store, Tianhong shopping center, Xinguang department store, modern department store, Spring Department Store, Ruifu Ole, Nanning department store (1 families).

At the same time, the operation of department stores is not ideal.

The sample monitoring data of Shanghai commercial information center showed that 58 large and medium-sized department stores in 2014 sold a total of 31 billion 960 million yuan, down 1.9% from the same period last year.

After 1.1% negative growth in 2012, sales fell again.

In terms of trend, the department store industry in Shanghai has changed from rapid growth in earlier years to slow growth or even negative growth.

Statistics show that the growth of the department store industry in Shanghai is not optimistic.

Various promotions can hardly conceal the weakness of sales.

In the city's business circles, the sales performance of the municipal business circle decreased year-on-year, except for the central business circle.

The total sales volume of urban department stores decreased by 3.4% compared with the same period last year, which is 10 percentage points lower than that in the suburbs.

Although the performance of rural department stores is better than that of urban areas, the growth rate tends to slow down, except for a few districts and counties, with varying degrees of decline, with a drop of 14.7%.

Shanghai's new world department store, which owns Paris spring department store in China, has released its interim results for the fiscal year ending December 31, 2014 as of December 31, 2014.

Data show that the total sales revenue of the company decreased from HK $8 billion 465 million to HK $7 billion 928 million in the same period last year, a decrease of 6.3%. The profit in the period dropped from HK $350 million to HK $206 million in the same period last year, a decrease of 41.1%.

Reporters noted that at present, Hongkong's new world department stores account for 63.7% of the proceeds from the sales of special counters, accounting for 18.4% of the sales and rental income of self-employed goods, and 2.2% of management and consultancy fees respectively.

Zheng Jiachun, chairman of the board of directors of new world department store, said that under the condition of sluggish market and low consumption, large rental expenses and rising staff costs were the main reasons for the decline in group profits.

{page_break}

The decline of department stores due to multiple reasons

When the reporter asked why the department store industry in Shanghai was desolate, Liu Mengjie thought it was caused by many factors.

On the one hand, from the consumer experience, the large and full shopping mall is obviously more selective, catering, entertainment, leisure and other facilities are complete, consumers can get more experience; on the other hand, the department store's own mode of operation does not give full play to its advantages, instead of referring to the shopping mall mode.

At the same time, customer service is not well done.

Liu Mengjie pointed out that there are many very successful department stores abroad. They have a very good operation mode. "Foreign department stores often have many private brands, many of which are very unique commercial brands.

Some department stores also have many brand new designers. They will support some of them in order to make people without me.

For example, the liberty department stores in the UK, their household products, women's accessories and scarves are all very attractive. There are both some buyers and some special purchases. At the same time, VIP's customer service has been well done, and has won many consumers.

Liu Mengjie believes that in terms of VIP customer service, department stores with their own advantages can do well because their business structure is not as decentralized as shopping centers, but unfortunately, they are not sure and play well, and their business formats are relatively simple.

Liu Mengjie said that the current retail industry in Shanghai is increasingly competitive, and the impact of the electricity supplier is also one of the major reasons.

But after analysis, it can be found that the distribution of electricity providers is mainly low-end consumption, mainly related to standardized products.

"The core factor is the oversupply of the entire commercial area. Therefore, if the operation is not featured, it will naturally be eliminated."

Insiders also pointed out that for the department store industry, the rent increase is also a big problem.

Property rental in department stores is 10 or 15 years, some even longer.

More than 10 years ago, the development of China's department stores was at an early stage. The general commercial real estate investment was not easy, many of which were rented at low prices.

But in recent years, when many commercial enterprises are faced with the re signing of the lease, they will encounter a sharp increase in rents and costs.

The decline of the department store industry is closely related to the emergence of diversified retail outlets, such as the complete range of commodities, the low price competition of electricity providers, and the shopping centers such as differentiation and experience.

However, it should be pointed out that most department stores have obvious geographical position and occupy the gold position of the core business circle, which is beyond the reach of shopping centers.

However, at present, most of the department stores in China operate in the form of joint ventures, which are profitable through deduction or royalty, which makes them generally neglect to cultivate their core competitiveness and rely too much on the advantages of lots and business circles.

Department stores have pformed themselves.

As a matter of fact, department stores have long been aware of their own disadvantages and have helped pform themselves.

Many department stores began to learn from the shopping center format, increase the catering area, improve the catering ratio, or introduce children's education and entertainment to gather people's popularity.

Reporters learned from Shanghai Pacific department store that the entire 8 floor of its Xuhui store will be converted to a new restaurant, increasing the proportion of food and beverage, introducing Korean style Neolithic barbecue, Japanese style and folk food HOS flats and pot sources, wal Cheng Thailand cuisine, and New Jiangnan flavored Guilong Longgang cuisine.

In fact, this is not the first time that Shanghai Pacific department store Xuhui has adjusted its format.

As early as 2005, the 8 floor of the shopping mall was the dining floor, but it was changed to children's Department retail in the following 2006-2013 years.

Now the shopping mall again adjusts the entire 8 floor to the catering format.

In addition, the Pacific City store has also been shopping center.