CASS: Department Store Closures Growing, Govts Should Be Prudent With Further Development

The latest research results CASS Institute of Finance and Economics Strategy released September 5, he said since 2013, our country into a department store closures, now closed down trend is still on the rise.

"National authorities should be highly concerned about the many problems caused by closures of department stores, and actively explore the policies of the department store industry for effective counseling to prevent the department store closures triggered a series of shocks."

...local governments should be prudently develop commercial real estate, prevent the feverish development of shopping centers, outlets, urban complexes, industrial parks and even e-commerce real estate.

...Whether small, medium or large department stores, all are facing the threat of closure. Starting in 2013, the situation of small and medium sized department stores began to collapse, then, large department stores have begun to collapse. RET Rui Yide Chinese Commercial Real Estate Research Center data show that, since 2014, has made it clear to large department stores closed shop number reached 38. In 2015, ranking first in the department store industry department Wanda began perilous. Wanda department from June 2015 began a major adjustment, will close 10 heavy losses of department stores, and poor management of compressed floor 25 department stores, ready to be streamlined to 50 stores.

Foreign department store collapse could not escape fate. Shang Tai Group of Thailand is still Thai department store shopping center in the end of August 2015 the last one closed shop in China, the official withdrawal of the Chinese market. British retailer Marks & Spencer has also decided to close until August 5 in Shanghai shop inside. Off store a large number of foreign brands have department store Parkson Department Stores in Malaysia, Japan, Ito-Yokado stores, the Hong Kong NOVO like.

...Department store collapse trend is still on the rise, some shopping centers fell into closures. According to the statistics, Beijing, Shanghai, Guangzhou, Hangzhou and other places there are still dozens of department store closed in 2015, but part of the shopping center began to appear collapse phenomenon. 101 shopping center in Chengdu Art has just opened in September 2014, and in mid-May 2015 abruptly shut shop. There are many similar cases.

...Furthermore, the consumer environment affected, department stores is caused by the collapse of external objective factors. Jinglin Bo said the economic slowdown, affecting consumer expectations. Our effectively promote anti-corruption, followed by a significant decline in spending public funds, for many department stores, the loss of a number of large customers, especially in all kinds of gift card sales decline to a huge department store business shock. Due to the high domestic purchase price of luxury goods, so that consumers in the domestic department stores to buy jewelry, watches, bags, cosmetics and other luxury goods behavior dropped significantly, but more and more consumers choose to buy abroad.

Jinglin Bo said that competition, excessive competition in the industry, coupled with the impact of the rapid rise of e-commerce, is the cause of death. He said that China's rapid growth in recent years, commercial facilities, the emergence of the phenomenon of blind development. The survey shows that only 50 commercial facilities, a net increase of China's major cities in total area than 2 years increased by 80 percent to 560 million square meters, obviously, so many commercial facilities can not be digested by the market is completed within a short period.
Sina: 百货店倒闭潮加剧 社科院呼吁审慎开发商业地产

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