Shang Tai Department Store Lost The Hang City Why Real Estate Is Hot, Business Is Cold?

Several years ago, Thailand Thailand central group (CENTRAL), one of the largest retail groups, is stationed in Hangzhou with the brand of Shang Tai Department store and intends to play a big role in the Chinese market. However, in a few years, Shang Tai Department store has been unable to support it. On the 16 day, a customs notice appeared at the gate of Hangzhou's Shang Tai Department store, which meant that it would officially withdraw from the Mixc, Hangzhou.

Reporters found that in recent years, department stores were common, but hot money poured into commercial property. The industry pointed out that this seemingly paradoxical phenomenon is that more residential real estate developers are transforming commercial real estate, but the competition is aggravated, the electricity supplier is under attack and the rent is high. The department stores are in an awkward position, so the new shopping malls are constantly moving.

　 Acclimatization, Shang Tai Department store will be closed

Thailand central group (CENTRAL), the largest chain store family business in Thailand, was founded in 1941 and has assets totaling more than 2 billion 500 million US dollars. It mainly manages high-end department stores, super stores, luxury hotels and pan commercial catering and entertainment formats.

"We are confident that in the Chinese market, we will first enter some economically developed second tier cities, and then plan to expand the whole country." The head of a Thai group of Thailand central group told reporters this time.

As a result, the Thailand central group's Shang Tai Department store opened in the Mixc in Hangzhou in 2010, highlighting its Thailand characteristics, and introducing many Thailand into Shang Tai Department store, such as the top brand Jim Thompson, Thailand Natural Spa skin care product THANN (Ting run), etc. it also introduced Acqua di Parma Palma's water, home brand Asianera, and French Gerard Darel and British brand Nicole Farhi, etc. these brands are the first to enter the Hangzhou market.

"Seemingly beautiful Shang Tai Department store We didn't get the approval of the mass consumers. The first feeling we entered the shop was that the commodity display and other structures were good. However, these characteristic brands in China do not have the popularity recognized by the public, and the price is not bad. We must know that Chinese consumers still remain at the most popular brand stage with moderate price, and there is almost no desire to buy goods without public awareness and high prices. The same problem exists between Shang Tai Department store and the previous failed European Shopping Mall, which is a small brand with a high price, so there is not enough popularity in the store and little consumption. Once visited the close group of the central group in Thailand, Mr. Zhu revealed that the central group operated very well in Thailand. Because of the different consumer ideas, the local investment brand was more suitable for the local people's "appetite". However, after copying these models to China, they were "acclimatized".

The poor Shang Tai Department Store is now unsustainable. Yesterday, in the Shang Tai Department's service desk, there was a notice that the business hours of Hangzhou store in Shang Tai Department were closed to 22 at October 31, 2014, and some cosmetic brands on the other floor will continue to operate until November 30th at 22. It was officially closed in December 1st. Customers who hold the store value cards or membership cards of Shang Tai Department stores can reach the store consumption before November 30th, or exchange the gift cards or electronic coupons in the membership cards. The remaining value of the stored value card can be refunded after the end of November 30th.

Many consumers say that they usually go to the Mixc quite a lot, but they have no desire to shop for Shang Tai Department store because they are full of expensive brands that they do not know. Now they will be discounted, but they are interested in doing some cheap things.

As for the management of Hangzhou the Mixc department store, there are different opinions on who will take over the management. According to industry sources, the Mixc belongs to the Huarun department, and it itself is also a retail giant. Therefore, it may take over by itself, and it may also introduce Parkson and other department stores to take over management.

　 Department store cold real estate fever

"Shang Tai Department Store" is not surprising in our industry. Department stores are becoming more and more difficult in recent years. This traditional format is small, experiential consumption is insufficient, and the impact of electricity providers is huge. With the annual increase in rents and human costs, the department stores have been in an awkward position. A few years ago, the Wangfujing department store could be proud to ask the owners to set up conditions for independent entry and other hardware facilities to enter, because Wangfujing's well-known department stores believed their brand was good enough to operate independently from the shopping center in the future, but in only 4 years, the whole industry was embarrassed. The online shopping was a great substitute for the sale of department stores, and due to the small size of the department store, there was not much experience in restaurants and other experiential formats. We see that Shang Tai Department Store is not the first embarrassment department store operator who has been shut down, including the Pacific, Parkson and other well-known businesses who have been closed and adjusted in recent years. RET Sun Yining, assistant director of Business Services Department, said.

Reporters randomly visited several stores in the Pacific in Shanghai, Huaihailu Road, and found that there were not many passengers in the store, especially when the women's floor occupied the largest share of sales in the past. It was almost impossible to see the real consumers.

Interestingly, despite the difficulties in the department store industry, a lot of investment is still entering commercial real estate.

According to the statistics of World Bank Richard, in 2005 ~2013, the volume of Shanghai's bulk retail property (including the volume of pure retail property with a turnover of more than 10 million US dollars) was as high as 34 billion 500 million yuan, or about 31.6% of the total 17 cities in the same period. At the same time, the secondary business circle has developed rapidly in recent years, and it is expected to enter a period of acceleration and diffusion. In 2010 ~2013, the secondary business circle grew by 67.1%, 46.6 percentage points higher than the core business circle, while the secondary business vacancy rate dropped from 15% at the beginning of 2010 to 11.3% at the end of 2013. In 2014 ~2016, the new supply of Shanghai shopping center is expected to reach about 3 million 300 thousand square meters, ranking the first among the major cities in the world. In addition, cities like Beijing and Hangzhou are also important areas for future growth of shopping centres.

"This is because under the control of real estate policies, the housing market is becoming more and more difficult, and the housing market is in a doldrums. So many developers turn from residential type to commercial real estate, and commercial real estate development is integrated with hotels and shopping centers. These are cash flow formats, so commercial land is highly sought after. As shopping center developers, they are concerned about the rental income. There are restaurants, department stores, movie theaters, children's chains, etc. besides the general department's hard work, the current popularity of restaurants, cinemas and other income is very good. business The real estate itself has to be done, but it is only pity for those pure department stores who have to bear the high rent and pull the operation. It is very difficult for some department stores to transform themselves into commercial real estate, such as Yintai and Jinying department store, which has further expanded the ranks of commercial real estate developers. Durbin, director of Business Services Department of RET Rui Yi De, who is a business outlet for many shopping centers, analyzes.

Of course, too much development can also cause commercial property in some areas to be unsatisfactory. CB Richard Ellis pointed out that Shenyang has the largest volume of retail property market in Northeast China. As of the second quarter of 2014, the overall vacancy rate of Shenyang's retail property market was 19.1%, and the vacancy rate was at a high level. The local market is still in the homogenization of competition, lack of theme; some developers lack of operation experience, directly leading to the operation of shopping centers is not ideal.