Wangfujing Department semi annual report shows that the first half of the company achieved operating income of 9 billion 433 million yuan, down 5.97% compared to the same period last year, achieving net profit of 378 million yuan, an increase of 2.07% over the same period last year.

Huang Wenjie, President of the China Department Store Association, told the investment Times reporter that "at present, the operating costs of department stores are rising, and the rapid increase in rents and labor costs is the main reason."

According to the sample data of a number of department stores selected in recent three years by CB Richard Ellis, the annual compound growth of property rents and staff expenses was 14% and 18.5% respectively, while the average annual compound revenue growth of the same period was only 8.8%.

Huang Yongzhi, Guang Bai CEO, said in an interview with reporters that "the new commercial projects are rapidly peataging, and the commercial outlets are too dense, which leads to the further separation of the retail market."

stay

Poor and increasingly competitive, many department stores choose to pform.

(online order, offline pick up) electricity supplier mode.

Liu Chunji, chief executive of the Wangfujing department store, said publicly that "the development trend of e-commerce retail industry is stronger than passive change."

Liu Chunji believed that

Online shopping mall continues online purchase, offline inspection of exclusive services, management methods from the turnover, gross margin concern to focus on products, in the future will create better quality e-commerce website.

However, many people in the industry have reservations about the O2O model.

A brokerage analyst who declined to be named told reporters that at present, the successful O2O mode is almost no, such as the O2O pformation of Suning once suffered huge losses.