Collapse, Closing Stores And Declining Performance In 2016

In 2016, the joy of the new year has not yet officially begun, and the sound of fading voice continues to float.

This voice has a wide range of brands, including luxury goods, fast fashion, sports and leisure, and manufacturers. They or stores, or brands are declining, or their performance has never declined, or they have been directly closed down.

People can not help worrying about it.

Recently, Gucci Renhe Spring Department Store in Chengdu has been confirmed to close its shop, and the brand said it is optimizing Chengdu's store configuration resources.

This is the luxury brand at the end of the year.

After closing the shop of Renheng landmark Plaza in Chengdu, another luxury brand closed shop in Chengdu.

Earlier analysts pointed out that in order to get better results, Gucci had to turn off the extra stores and had no other choice.

Yes.

People who understand the business circle point out that for luxury brands, there seems to be no reason to support them to open the same store at such a close distance. Whether it is the current luxury retail environment or the potential of Chengdu's luxury consumer market, Chengdu's mature Chengnan city in 2016 may be more in line with the appetite of luxury brands.

Fast fashion: GAP wanted to curry favor with consumers, and the result was down.

Compared with competitors ZARA, H&M and UNIQLO, the fast fashion brand GAP of the United States is accelerating to lag behind, regardless of brand influence or performance growth.

GAP group's stock has fallen 40% in the past year, which is the worst performing stock in the fast fashion industry.

The company's profit fell by 29.3% to $248 million in the first quarter of October 31, 2015.

In the same period last year, the company posted a net profit of $351 million.

In addition, net turnover fell to nearly $30% from $3 billion 970 million in the same period last year to $3 billion 860 million.

In the next few years, GAP Group North America will close 175 GAP brand stores and lay off 250 employees.

Primark cheap brands are also not selling.

In recent years, the fast developing British cheap clothing retailer Primark has lost to the warmest winter in Europe in the most important holiday season of the year. During the 9 week (holiday season) in November 1st to January 2nd, the weather in Europe is getting warmer and the rainfall is increasing. Some winter clothes in some markets have not been sold, and the same store sales trend has been reversed in Primark.

However, John Bason, chief financial officer of Associated British Foods PLC Ying Lian food group, pointed out that the passenger flow of stores has been stable, but weather related products are unsalable, so there is no need to worry about future performance.

The group points out that the Primark operating profit rate, which is affected by the US dollar, will drop as expected, but the decline is lower than previously expected, mainly due to the excellent performance of the procurement team and the weakening of the discount promotion level.

Leisure: Bossini medium term profits plunge 90%

Bossini, a Hongkong casual wear retailer, issued an earnings warning on Thursday. It said that the profit for the first half of fiscal year ended December 31, 2015 will drop 80%-90% by the end of December 31, 2015.

Bossini burshlung said the drop in profits was mainly due to the decline in the number of visitors and the strong Hong Kong dollar, which led to a decrease in consumption of tourists in Hongkong and Macao.

The above causes the group's earnings and gross margins to decrease, resulting in a sharp drop in profits.

Exercise: Under Armour climbed up and down.

Recently, Under Armour, the second largest sporting goods group in the United States, has only bad news.

Data show that market share of Under Armour's largest sales category sportswear has declined for the first time in the past three years.

It is reported that Under Armour has invested heavily in women's sportswear marketing last year ($15 million), but this category is losing its way to competition from peers.

It is worth noting that men's wear products are still the backbone of Under Armour.

What is even more surprising is that the average selling price of UnderArmour sports shoes is also accelerating. Since January 2013, the price of the brand running shoes has dropped by 20%, while the industry has dropped by only 4%. Meanwhile, basketball shoes also have the trend of price reduction, and there is a trend towards price war.

Manufacturer: Prada Dongguan foundry closes and ends production.

In January 11, 2016, the Dongguan Xing ang footwear industry announced the closure of the factory. The main products of the factory were women's shoes, including Nike, Prada and other famous brands.

According to the announcement issued by Dongguan Xing ang footwear industry, due to the impact of the economic situation, the company's customer orders have shrunk seriously, and it is difficult to continue to operate. Therefore, the decision to stop production and lay off workers has been made.

Since the announcement date, Dongguan has entered the closed period before the end of production. The company will officially close its production and operation activities in February 10, 2016.

Dongguan Xingang is a subsidiary of Xingan International Co., Ltd., and Xingang international is officially listed in Hongkong in 2007. The stock is called "nine Hing Holdings". It is currently one of the ten largest shoe manufacturers in the world.