In The Past 4 Months, The Purchase Of Spring Department Stores In Wangfujing Is Coming To An End.

< p > Wangfujing department store recently announced that the acquisition of 39.53% equity trading in spring department stores in China has been approved by government departments and will issue a mandatory tender offer aimed at all shares in China's spring. This means that the acquisition of spring department stores in Wangfujing for nearly 4 months is drawing to a close. < /p >
< p > by the macroeconomic slowdown, rising operating costs and the impact of electricity suppliers, the traditional department store industry has experienced bottlenecks after more than 10 years of rapid growth. In the depressed environment of traditional retail industry, Wangfujing chose to buy spring department stores, which caused many kinds of speculation. < /p >
< p > data show that Wangfujing group currently has 30 stores nationwide, with a sales scale of nearly 25 billion yuan. As of now, there are 21 stores in spring department stores, including 17 spring department stores, 3 Oteri J and 1 Seth shopping centers. Mainly distributed in 8 provinces and municipalities, the total business area of more than 500 thousand square meters. After the completion of the acquisition, the number of stores held by Wangfujing department store reached 51, and became the department store group with third of the total number of stores nationwide after Wanda and Baisheng department stores. < /p >
< p > the industry believes that the integration of retail groups and the improvement of the concentration of retail market are important indicators to judge whether a market is mature. American department stores such as Messi, Sears and other department stores have used the same industry mergers and acquisitions to achieve rapid expansion of scale. Under the background that the concentration of domestic department stores is relatively scattered, the greatest significance of the acquisition of Wangfujing is undoubtedly to enhance the concentration degree of department stores, while reducing operating costs, and enhancing the ability of large-scale risk prevention. < /p >
< p > Zhou Qing, vice president of Wangfujing group, said, "the malpractice of the general merchandise joint mode has been gradually revealed, and Wangfujing department store is currently seeking a breakthrough in the joint venture mode. We should expand not only the scope of our own business, but also our own brand by the end of this year, so as to shape our own differences. Statistics show that Wangfujing's own property accounts for less than 15%, while spring department stores own property accounts for nearly 50%. Its acquisition of spring department stores will directly enhance its own property share and facilitate the strengthening of self employment. < /p >
< p > the acquisition also valued the difference between the other side and its business. Changjiang Securities researcher Tong LAN believes that the 3 Chinese Oteri J stores in spring will open new retail outlets for Wangfujing suppliers. Since 2011, Wangfujing has opened Zhengzhou, Foshan and Xi'an shopping centers in a joint venture to try the transformation of shopping centers. And spring department stores in Beijing's outlets, sales in 2011 amounted to 1 billion yuan, accounting for 20% of the company's total sales, huge growth potential. If we merge the spring department stores, Wangfujing will receive outlets and related management experience, which is expected to achieve multi format operation. < /p >
< p > spring department stores reported that in the 2012 fiscal year, its total revenue was 5 billion 419 million yuan, an increase of 12.7% over the same period last year, while its same store sales grew from 18.8% in the 2011 fiscal year to 4.5%. Such sales growth and declining profitability have been going on for several years. The profit attributable to its owners in 2010 was 341 million yuan, 313 million yuan in 2011 and 156 million yuan in 2012, with a gradual increase. < /p >
< p > in the face of declining performance for many years, the spring department store's choice of transferring shares will undoubtedly bring new vitality to the brand's future development. For Wangfujing, "although spring department stores have weaker competitiveness, they have multiple outlets in places such as Xiamen, Guiyang and Qingdao, which are not yet entered by Wangfujing. If merging spring department stores, it is expected to achieve a win-win outcome of two major brand channels complementary and supplier sharing." Said Tong LAN. < /p >