Recently, many Wanda stores have been closed down, causing people to think about the dilemma of the existence of entity stores.

According to Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce and international trade and Economic Cooperation Research Institute, the domestic department store's business mode is 90% of the joint venture and 10% of self employment, that is, the brand managers who are stationed in department stores control the entry, sale and storage of goods, and the pricing power of goods, and the employees who sell the goods belong to the brand dealers. The department stores are only responsible for providing venues and services, and then get the deduction rate from the transaction volume, so it is called the two landlord.

With the upgrading of consumption, shopping centers continue to appear, and department stores begin to compete for brands with high market maturity. When the bargaining power of the brand enterprises is stronger and stronger, the department stores are unable to integrate the upstream enterprises, and the profit space is narrowing gradually.

It is reported that the gross profit margin of China's department stores is around 17%, while foreign counterparts have a gross margin of 30% due to the ability of commodity self-operation and the development of free brands.

"Obviously, no matter how much the department stores are promoting, they can not compete with the electricity supplier. In terms of format, they are not as good as shopping centers to satisfy consumers' leisure needs such as shopping, dining and entertainment." Fan Yanru, Deputy Secretary General of the Chinese Department Store Association, said that the discount sale seems to be aimed at dealing with the "price war" of the electricity supplier, which in fact reflects the weakening of the self retailing capability of department stores.

It is worrying that industry analysts say that Department store promotion It still stays in the old way of using "full to reduce" and "full to send" to celebrate the festival and festival. Although it can increase sales volume, it will also lower the gross profit margin. And Discount promotion As a short-term strategy, it is not a permanent solution, it can not solve the essence problem, but also affect word of mouth.

　　 Ginza group Zheng Liangyu, deputy general manager of Limited by Share Ltd and general manager of Ginza department store, said that at present, the problem of homogenization competition in many department stores is serious, and the location of goods is inaccurate and services are not in place. At the same time, wages, utilities, and decoration costs are rising, and the profit margins of department stores are decreasing.

An analyst who did not want to be named said that the traditional retail form of department stores would gradually withdraw, especially in the first and second tier cities, and the retail format would be dominated by commercial complexes providing shopping, catering and entertainment services.