Sogo And Jiu Guang Department Store'S Parent Companies Are Preparing For The Listing To Split The Mainland Business.

Shenyang long Guang Department store, which has been opened for two years, has been closed because of a loss of 100 million last year, while another in Dalian, in the northeast region, has shown negative growth, while Suzhou long light in the Southern China region has only slightly increased by 0.3%, and the best Shanghai long light has only 3.1% growth rate.

Retail operator Li Fu International Group Limited now recognizes that the mainland business "riff China" will be listed in Hongkong, and the application has been submitted.

Li Fu international retail operator in Hongkong, operates middle and high-end department stores, and owns two major retail brands: SOGO and Jiu Guang.

At present, there are three department stores in Shanghai, including Jiu Guang, Suzhou Jiu Guang and Dalian Jiu Guang in the mainland. In addition, there is a commercial complex under construction in Shanghai Daning, including office buildings, retail establishments and second Shanghai Guang Guang Department stores.

In addition, there is a equity investment in Shijiazhuang northerners group in Hebei. The northerner group currently operates an area of about 1 million 100 thousand square meters, including 16 department stores, 35 supermarkets, and other electronic consumer goods.

Special stores, etc.

According to its earnings report, the investment contributed about HK $347 million 800 thousand to the group during the year.

According to the China Chain Store Association survey, since 2010, physical retail has entered the "declining sales and declining profits" range.

Last year, Li Fu's business was consistent with most department stores.

Shenyang's Jiu Guang Department store, which opened two years ago, was closed because of a loss of 100 million last year. Another Dalian, located in the northeast of China, had a negative growth in sales, while in Suzhou of Southern China, Jiu Guang only increased by 0.3%. The best performing Shanghai was only 3.1%.

Over the past few years, rifle International

The proportion of business with the mainland has remained at 7:3, but as early as three years ago, riff International hopes to turn its sales share to half and even to increase the proportion of the mainland.

It remains to be seen whether there is a chance to reach the expectations of the mainland market after the split listing.

On how to save the trend of decline, the Group executives have repeatedly stated that they will not rush to develop e-commerce business, and will maintain competitiveness and long-term potential through renovation and upgrading.

For example, in the future, consider introducing international young brands and sports brands to meet changing consumer needs or extending their "thank week" in Hongkong department stores.

Moreover, because the revenue of department stores in Northeast and Suzhou before is far different than expected, Li Fu said it would prefer to consider the first tier cities in the mainland in the future.

At present, the proportion of mainland business income to Li Fu international accounts for 24.7% last year, accounting for 27.2% the year before.

On the other hand, the main battlefield of rifle International's revenue is mainly located in the two branches of Tongluowan's SOGO Department Store flagship store and Tsim Sha Tsui branch, and the situation is not very good.

According to the data in the first half of 2015, the traffic volume of Tongluowan's SOGO Department declined, from 84600 to 78500 per person per day, with an average reduction of 508 per hour.