Leading Department Stores, Wangfujing, Hengda, Diversified Transformation, And Finding A Way Out, The Outcome Is Unpredictable.

On the Beijing equity exchange website, the 100% stake in Zhuzhou Wangfujing Department Store Co., Ltd. is sold on the market of 10 million 301 thousand and 100 yuan, which means that the Beijing Wangfujing department store (Group) Limited by Share Ltd (hereinafter referred to as Wangfujing) has announced that it will lose another branch after the announcement of Beijing Zhanjiang shop closed in July.

Public information shows that as at September 30, 2014, the net profit of Wangfujing Zhuzhou branch was -1441.52 million, and the owner's equity was only 9 million 276 thousand and 100 yuan. In 2013, the net profit of Wangfujing Zhuzhou branch was 20 million 638 thousand and 300 yuan, and the owner's equity was -6330.87 million yuan. If the net assets of the book account for 9 million 276 thousand and 100 yuan, the selling price of 10 million 301 thousand and 100 yuan will be 11%.

Tao Wensheng, a partner in Peking University, said in an interview with reporters that the reason for the transfer of Wangfujing to Zhuzhou branch was mainly due to lack of funds and poor performance of Zhuzhou branch. "There is a high probability of failing to open stores in different places, and the success rate is very low. Previous Wangfujing shops in Zhanjiang and today's Zhuzhou stores are exactly the same."

In addition, Wangfujing has previously worked with Hengda for its own capital of 516 million yuan. The two sides established Wangfujing department store Hengda commercial limited and Wangfujing Hengda department store business management Co., Ltd.

　　 Wangfujing or another shop

Since July of this year, the Wangfujing shop in Zhanjiang has been poorly managed. Close After less than half a year, the Wangfujing shop in Zhuzhou will turn to others.

Public information shows that Wangfujing Zhuzhou branch was established in May 28, 2010, located in the core area of Zhuzhou central business district. Its construction area is 33000 square meters. It is controlled by Wangfujing 100%, with a registered capital of 97 million yuan and 124 employees.

Prior to the transfer, the Wangfujing store in Zhuzhou was exposed by the media in June of this year. The supermarket on the first floor was reclaimed by the property side, changed into a restaurant format, and the property side was publicly invited. In August 2014, Zhuzhou Wangfujing stopped selling shopping cards, and the format of the six floor of Wangfujing in September also began to adjust, leading to the fact that the area belonging to Zhuzhou's department store was reduced to 20000 square meters.

In addition, it has been reported that the Zhuzhou Wangfujing store has not been able to manage its own professional capacity since its opening. It has begun to reach a share transfer agreement with the Zhuzhou Wangfujing property side, China commercial real estate. At present, the Zhuzhou Wangfujing store's listing transfer behavior also illustrates Wangfujing's attitude towards this mode to a certain extent.

For why Listing The Zhuzhou branch, which has been in operation for more than four years, has been contacted by the reporters of the Securities Daily, who contacted the vice president of Wangfujing and Liu Changxin, vice president of Wangfujing.

According to the semi annual report of the Wangfujing in 2014, there were 17 100% holding wholesale and retail branches in the Wangfujing during the reporting period. There were 6 branches of net profit loss, including the Wangfujing branch of Zhuzhou. The current loss amount was 8 million 520 thousand and 500 yuan, while the other 5 loss branches were Fuzhou Fuzhou department store limited liability company, Zhanjiang department store limited liability company, Zhanjiang department store limited liability company, Zhengzhou department store Limited company and Jiaozuo department store Limited company.

The above 5 branches, apart from the announcement of the Zhanjiang Wangfujing company's closure in July this year, insiders said Wangfujing was also considering closing the Fushun branch, but so far has not yet decided. According to the semi annual report in 2014, the loss of the Fushun branch of the Wangfujing during the reporting period was 17 million 501 thousand and 300 yuan.

　　 Various Transformation Unexpected outcome

The slow development of department stores has become an indisputable fact, especially in the high-end Wangfujing department stores. Public information shows that from 2011 to 2013, Wangfujing's revenue growth was 20.18%, 8.97% and 8.35% respectively, decreasing gradually.

In response to the challenges, Wangfujing began a comprehensive transformation. Wangfujing works with McKinsey and IBM to build an online platform, cooperate with WeChat, launch the APP platform and WeChat service number, on-line store WIFI, promote the construction of all channels and integrate resources on line and online. In addition, Wangfujing plans to synchronize with the system switch early next year to promote its own internet channel construction, including online shopping mall, WeChat shopping, Wangfujing mobile mall, and the expansion of the third party network channels.

In addition to the above transformation, Wangfujing It has also begun to build its own brand, transforming shopping centers and outlets. Wangfujing department store has previously announced plans to open four to five shopping centers before 2015, and complete the layout of provincial capital city stores in five years.

In addition, the company recently announced its cooperation with Hengda Real Estate Group. Wangfujing said that through its strategic cooperation with Hengda Group, the company will give full play to Hengda's commercial property development and construction advantages and Wangfujing's business management advantages, so as to bring sustained commercial real estate resources to the company and reasonably enhance the proportion of the company's self-sustaining property.

Some people in the industry say that Wangfujing department stores, as the leader of the department store industry, although it opens the road of diversified transformation, it is good to start from the point of view. However, from the current overall environment, the efforts are still in the stage of burning money, and the effect has not yet been reflected. "Almost all of the traditional department stores are in transition to O2O, but there is still no successful sample yet. It is hard to say whether this is a traditional department store outlet."

"The Wangfujing chooses to cooperate with Hengda, and intends to reduce the operating cost by improving the company's self possession property. If the cooperation is good, Wangfujing will probably transfer the other stores that run poorly or lose money". The foregoing Peking University partner Tao Wensheng added.