Wanda Reduces Department Stores For Experience Consumption

Close to people pointed out that Wanda Department store has been operating very well because of geographical location, investment and other reasons, but this is also a common problem in the industry. Therefore, Wanda intends to adjust to activate the business as a whole. However, the high proportion of food and beverage will also lead to a decline in overall revenue.

Reduce food and beverage

Wanda is preparing to close about 10 poorly managed Wanda stores, and plans to reduce about more than 20 department stores.

Wanda stores, which are closed, are located in Ningbo, Qingdao.

Cities such as Wuhu and Wanda Department, which compress the department store, are located in Wuxi, Xiamen, Qingdao, Yantai and Changzhou.

"The above information is basically true.

Wanda has about more than 80 department stores in the country, basically combined with Wanda Commercial real estate, namely Wanda Plaza, Wanda Plaza as a shopping center format. Besides department stores, there are many other food and clothing introduced by merchants. Now the most important thing in real business is popularity. Therefore, Wanda intends to add some attractive formats to make the overall format adjustment.

Therefore, after assessment, we will close the Wanda Department stores in Wanda Plaza of some three or four cities, and then increase the catering and experiential formats that can enhance the popularity of shopping malls.

Informed sources revealed.

Reporters learned in the interview that this is not the first time that the Wanda commercial sector has adjusted its format. After Wanda Plaza had been adjusted to "dress up", it reduced the clothing format and increased the catering format. The reason is just like this adjustment. The clothing format is not very attractive, and catering helps to boost popularity.

"In the final analysis, the real business is being hit too much by the electricity supplier.

The costumes were previously introduced by shopping centers, because the selling price of clothing is usually more than 10 times the cost price, and the profit margins are huge, so the rental capacity of the apparel industry is very strong.

Comparatively speaking, the price of food and beverage is low and the ability to bear rents is low.

If the clothing store has a daily rent of more than 10 yuan per square meter, then the daily rental of the restaurant is only 3~5 yuan per square meter.

So taking into account the rental income, the previous shopping center most like the clothing format, but now the electricity supplier has a high substitution for clothing products. Many people buy online clothing, so the store clothing business has lost a large number of tourists, lack of popularity.

Instead of dining, cinemas and other online shopping can not replace the experience of the format can gather a large number of tourists, shopping malls to deal with

The most important thing is the experiential format. Therefore, catering has become the investment attraction. Some of the most popular food brands such as "Grandma's home" are almost all shops seeking restaurants.

Close to Wanda people told reporters that it can be imagined that Wanda from "going to costumes" to the current "cut off" its own department stores, making room to increase catering and other experiential formats, with the aim of gathering popularity.

The reporter has visited several Wanda Plaza in three or four line cities. Its business mode is to introduce private brand series as far as possible, such as big singer Cara OK, big player, Wanda cinema, department store series, and reduce clothing business.

But the popularity is uneven. Some of the shopping malls are popular. Compared to the 100th Wanda Plaza in Kunming, Yunnan, which has just opened, the Wanda Plaza in some cities is not popular.

"Wanda Department store has been established for several years, and the top level has been changed, but its operation has not been very good.

The most important reason is geographical location and investment. Unlike general fashion department stores located in the downtown area, some new projects in Wanda Plaza are very large, at least 100 thousand square meters, so they can only get a suburb or three or four line city in the first tier cities.

Wanda's investment brand is not very powerful, but it has improved in the later stage, but it is still not good enough.

Compared with Baisheng, Yintai, Pacific and other department stores, Wanda is more like a capital operator than a department store operator. Retail is a very cumbersome, detailed and professional management industry, and can not be treated as a capital operation.

These people admitted that this is not the problem of Wanda Department store. Of course, many department stores are facing embarrassment and pformation.

Reporters in the interview further learned that many three or four line cities to attract Wanda such a large brand to enter, giving a lot of preferential policies, so Wanda Department can relatively low cost shops in these areas, which may also cause some regional location is not appropriate.

Some complex projects are combined with real estate development, as long as the surrounding property is sold out, developers have made money, and the shopping center format may have to be maintained for 10 years before returning to the original, so the department store is very difficult to do.

Therefore, Wanda hopes that the experience of Rio Tinto cinema, catering and children will improve the operation of shopping centers.

In addition to the adjustment of format, Wanda is upgrading its electricity supplier in the near future to improve the overall business sector.

Informed sources said that just after a round of financing for investment in electricity providers, hope that the future Wanda business can be combined with the common development of electricity providers.

There have been contacts with Wanda electricity supplier business revealed that Wanda electricity providers plan to use big data, accurate analysis of consumer behavior in the future, and the development of bundled Wanda shopping card, for example, through big data analysis, Wanda can know the consumption habits of consumers, even their families have several elderly people, a few children, these elderly people and children's consumption habits, and then regularly push marketing information to different consumers, to achieve precise marketing.

The industry believes that Wanda's adjustment to the department store format and the future application of big data by the electricity supplier are very promising, but whether it will succeed is still to be seen.

At present, the operation of Wanda cinema is pretty good, but the proportion of catering must be controlled. For example, in the past, catering accounted for only 10%~20% of the overall investment proportion. Nowadays, in order to attract popularity, Wanda and others will increase the proportion of catering to 30% or even 40%, but the profit of catering is low. Once the proportion exceeds 40%, it will affect the overall revenue of shopping malls, so the proportion of catering can not be blindly upgraded.

In addition, children's formats are very good in experiential format, but we should pay more attention to the proportion.

Wanda is "militarized" management, the process is strict, the target is set to be completed one by one, and those who fail to reach the standard are out. The efficiency of the model is very high, but many people quit after 1 years in Wanda, and the pressure is too great.

Therefore, Wanda business should pay attention to risks in the process of pformation.

Close sources revealed.