Huarun Insists On Not Giving Up The Beijing Market.

In the first quarter of this year, Huarun's Huarun business started to show a turnover of HK $34 billion, an increase of 21.3% compared to the same period last year, and net profit of HK $338 million, a 28.2% decrease compared to the first quarter of this year.

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Over the same period, the turnover and net profit deficit were HK $5 billion 219 million and HK $79 million respectively.

Last May, Huarun announced that the joint venture agreement signed by Huarun, the parent company and TESCO, was approved by the relevant Chinese government agencies.

But the road to integration is not smooth.

Not long ago, the Southern District Manager's rotation plan, which was implemented by Huarun, triggered the dissatisfaction and protest of the original Tesco employees. The Tesco supermarket, Ji'nan Second Ring East Road shop, also caused suppliers to protest.

Nevertheless, the integration of TESCO has not stopped.

It is understood that during the two years of merger and consolidation, Tesco closed some shops in the east of China which were not performing well or the owners' contracts expired.

Tesco closed 4 stores in East China in 2014 and closed 2 stores in eastern China in the first half of 2015.

"In addition to closing shop stops, we also carry out the pformation of stores, for example, the stores with large area but better location will change the commodity structure and turn the store into a big one.

The specific way is to change the 20 thousand square meter store to 10 thousand square meters, household appliances and clothing can be removed, instead of introducing some hot personalized products, and strengthening fresh management.

Said the chief executive of Huarun Wan.

He said that after a year, the two sides have already integrated in the background docking and so on. Some of the poor Tesco stores have been closed or reformed. Meanwhile, Tesco's team has launched a multi brand shop plan after joining Huarun's ten thousand systems. In the future, music purchase will gradually become a brand of Huarun department, and the two are gradually unified.

Some suppliers were eliminated.

It is understood that Huarun Wanjia Xidan store, located on the two floor of Han Guang Department store, opened in 2000 and has been in operation for 15 years.

In fact, this is not the first time Huarun stores have closed stores.

At the end of last year, Huarun Wanjia closed three stores in Hebei. At the beginning of this year, Huarun Wanjia closed the Changchun leap shop.

For the Beijing market, according to the "Beijing business daily" quoted by Huarun insiders, Huarun has lost about eighty-nine million yuan in Beijing last year in addition to the influence of the integration of TESCO (Le Gou). Two or three stores will be re adjusted this year.

However, the person in charge told reporters that Beijing, as a political and economic center, will not give up the Huarun market.

At present, Huarun Wanjia has reached 12 stores in Beijing market, over 36 stores and VANGO15 family.

According to Huarun's 10000 sources, there will be no plan to continue shop in Huarun in the future, but the plan is to open 10 stores, and VANGO convenience store aims to open another 30 stores.

It can be seen that Huarun Wanjia is making the Beijing market "smaller" and will be promoted throughout the country.

Huarun 10000 relevant responsible person also said that in the future in a second tier cities, in order to maximize control costs, fine management, Huarun will be the smallest format of the industry as the main direction.

At present, Huarun has many formats such as hypermarkets, high-end supermarkets, standard supermarkets, convenience stores and so on. Among them, the convenience store single shop area is about 100 square meters, while the Tesco Express single store area is about 500 square meters.

According to the plan, Huarun's small format stores will expand to about 5000 in 2020.

Huarun Wan's move is also more obvious, and vigorously layout the hot O2O business.

The person in charge said that Huarun hopes to rely on small format stores to break through, in the future more emphasis on fresh products and services related functions of residents, but also with Huarun's electricity providers to provide store to pick up services, it is more demanding that the layout of small format stores should be intensive.