Department Stores Added Insult To Injury In The First Quarter And Net Profit Fell By Nearly 90%

Close shop, shorten business hours, rent free, sudden drop in passenger flow In recent years, the department store industry, which has been declining in recent years, is even worse in the first quarter of this year. How big is the impact of "black swan" on department stores in the first quarter? The media selected the first quarter data of 46 department stores listed companies, and compared the data of three years to see the truth.

The revenue of department stores decreased from 10.547 billion yuan in the last quarter to 10.547 billion yuan in 2018.

In the first quarter of 2020, the net profit of 46 listed department stores was 3.473 billion yuan, compared with 4.735 billion yuan in 2019 and 9.289 billion yuan in 2018.

The impact of the new crown pneumonia epidemic has become the common reason for the decline in performance. Previously, during the epidemic period, shopping mall passenger flow declined by nearly 90%, which directly led to the decline of department store performance, especially in the first quarter.

From the data, in the first quarter of 2020, only 3 of the 46 listed department store companies had a revenue increase, which were Yuyuan shares, Yuexiu financial holding and Shanghai 900, of which Yuexiu financial holding had the fastest growth of 117.97%.

Among the 46 companies, the most serious decline in revenue was Tianjin Quanye, with a year-on-year decrease of 89.85%.

The first quarter revenue of Yuyuan was 10.303 billion yuan, Bailian was 9.836 billion yuan, and Chongqing department store was 7.589 billion yuan. However, according to the announcement of Yuyuan shares, jewelry fashion industry is the core business of the company.

In the first quarter of 2020, 21 department stores were profitable, compared with 40 in 2019 and 43 in 2018.

Among them, the net profit of Yuejin Group increased by 35.5 billion yuan, with the fastest increase of net profit of 1205 million yuan.

However, pan Yuming believes that the main factor that will affect the total amount of online and offline consumption is not increasing. Some industry analysts said that with the spread of the epidemic, the psychological impact of public consumption will be more and more serious.

In fact, the trouble with department stores doesn't start this year.

After the "golden period", the department stores are more lost. With the change of the track, shopping centers, e-commerce and outlets are all in a trend of catching up, and the department stores that have experienced big waves have been actively seeking transformation.

While the epidemic has brought impact on department store passenger flow, it may also press the acceleration button for online and offline integration of department stores, which makes the department store industry noisy again.

Time back to the first quarter of 2020, live delivery or online sales become a new trend in the development of the department store industry.

On February 18, Yintai department store joined hands with Taobao to open a special live broadcast for 10 Hubei shopping guides. The whole live broadcast lasted three hours, and the number of viewers reached 75000, equivalent to the weekend passenger flow of a senior shopping center. In addition, Chen Xiaodong, CEO of Yintai department store, also personally went to live broadcasting, with 220000 viewers in 4 hours.

On February 28, the Golden Eagle Shopping app launched live broadcast for the first time. Without publicity, the number of people watching a single scene reached 14000, and the total sales volume exceeded 100000 yuan.

On the fifth day of March 3, the total number of viewers reached 80000 + and the total sales exceeded 2 million. In five days, the total sales volume reached 20 times. In 31 live broadcasts on March 6, the total number of online viewers reached 140000 and the total sales exceeded 4 million. As of March 7, only Lancome, Estee Lauder and SK-II had 24 live broadcasts, with total sales Six million;

Fujian Dongbai Center launched the "live watch me make" seckill, with a total sales volume of more than 1.25 million yuan and a small app's browsing volume of nearly 400000 person times;

During the 38 festivals, the daily average number of visits to online apps reached 100000 person times, an increase of 191% month on month.

It seems that the performance of department store live broadcasting is not so good, and then CEOs and store managers have launched live broadcasting, and most of the data are not satisfactory. However, some people in the industry point out that a live broadcast sales of cosmetics ranges from 300000 yuan to 500000 yuan, while that of clothing category ranges from 10000 yuan to 50000 yuan. It also depends on the operation quality of the customer group.

This means that there are many crises behind the live data of department stores. How to make efforts in the field other than cosmetics is a problem that department stores and brands must reasonably solve.

In addition to the selection of products, most of the department stores do live broadcasting as member business, but the purchase channels have changed. How to transform public domain traffic into private domain traffic and improve the level of staff live broadcasting are all in front of the department stores.

This also means that although live broadcasting brings dividends, the key point is the future digital operation of shopping malls.

Some people in the industry believe that the main battlefield of department stores and shopping centers will still be offline in the future, and live broadcasting can only be used as a new growth point.

In particular, in the first half of the past year, department store live broadcasting did not derive new playing methods. It was still done in three ways in the first quarter

1. Cooperate with brands to promote products through live broadcasting.

2. Through the establishment of wechat group, circle of friends and other social tools to convey information, and then attract customers to buy by means of red packet fission and second kill.

3. Commission commodity distribution rebate, turning customers into "employees".

With the full resumption of offline work, the enthusiasm of shopping malls to do live broadcasting seems to be reducing.

"Live broadcasting is a temporary emergency measure for retail stores and an extension of brand marketing. If you want to go deep, you have to understand the logistics data of the brand side and the right of commodity adjustment agreement like Yintai." Pan Yuming pointed out.

"At present, the fluctuation and decline of department stores will continue, brand goods can't keep up, and small non-standard brands will continue to give up operation, and retail stores will temporarily fill the vacant shops in the freight yard, which will look good for the time being, but can't save lives. Assuming that the epidemic situation continues in this way at the end of the year, it may bring disaster to department stores. The key to the self-help method of department stores is to innovate in business channel reengineering, subversion or temporary preparation. The product mix must shift to rigid demand, simplify or temporarily close selective commodities, change functional space such as children's entertainment, and organize products around rigid demand, such as protection, daily chemicals, medical care, etc

Of course, some department stores have also found a new way out.

For example, Wangfujing and Bailian have both taken up the idea of duty-free shops and expanded their business scope; Tianhong changed its name from "Tianhong shopping mall Co., Ltd." to "Tianhong Shuke Commercial Co., Ltd." in order to better match the company's future business development direction.

In addition to Yuyuan (whose core business is jewelry and fashion industry), other industry giants, such as Bailian, Chongqing department store and Wangfujing, all grow slowly. These industry giants also need to find new growth points to break through the bottleneck period and "grab food" from e-commerce and shopping centers.

It is not easy to "harvest" the z-generation consumers. In addition to the digitalization that has been advocated in recent years, the department store industry may have a "tough battle" to fight in the investment promotion and marketing system.

Pan Yuming believes that there may be three trends in department stores in the second half of the year

1. In the second half of the year, if the epidemic situation does not jump repeatedly, consumption will recover, especially in urban areas where consumption is relatively safe. However, most stores can not complete the scheduled business tasks, and the annual loss is a big probability.

2. Rigid consumption around daily necessities and functional clothing will have a relatively large growth; cosmetics are more special, often simple emotional girl social role substitutes, will have a better growth; clothing category will still be relatively miserable, should be replaced by other miscellaneous goods, daily necessities.

3. A new round of business channel and business scene reconstruction and design meeting is emerging. Internationally, it is proposed to change from customer-oriented to life-oriented, and seek products in the direction of caring for life, which has gone beyond the scope of simple commodity management.