Wanda Store Closes Too Suddenly.

Sales can not serve as a cash cow, and the cash flow pressure of the "sale of rent" has been highlighted.

And the exploration of pformation has been decided, so we have to cut down the department which does not meet the direction of pformation and can not slow down the pressure of cash flow.

Cinema is a new industry, not only can "tell stories", but also can contribute to cash flow alone, while department stores are too angry and two dragged down, and it is no wonder that they are cut down.

The department store opened 24 stores, and was also written into the "performance column" of Wanda Group's work report in 2014. It was praised by Chairman Wang Jianlin and opened 3 in the first half of 2015.

But with the sudden change of wind and wind, the group's next task is to close half of the 90 department stores by the end of July this year, the remaining more than 40, or to reduce the operating area, or adjust.

(such as turning to catering).

No wonder, unemployed workers hang up the banner of "you are too ignorant of the chairman" to express their dissatisfaction with "just find a job and lose their job".

Perhaps, compared with domestic and foreign department stores, many people do not know much about Wanda Department stores, but it is the largest chain department store in China, and there are 99 stores.

The reason why the popularity of No.1 is not so great is that it can rely on the big tree of Wanda Group.

Moreover, in the 3 pillars of Wanda version four (commercial real estate, high-end hotels, cultural tourism and chain stores), department stores occupy one seat.

Wanda can become the "big boss" of domestic commercial real estate (will become the world's first in 2015), and has 25 million of self-sustaining business.

Among them, we have to talk about the two pillars of the Wanda model: "selling rent for sale" and "ordering real estate".

In the suburbs and three or four tier cities that are heavily deployed in the core cities, if they want to realize the quick sale of supporting housing and shops, the only way out is to return the funds to subsidize the cash flow pressure of the large area of "self-supporting business". The only way out is to convey the anticipation of the rapid appreciation of property to the market, so as to attract buyers into the market.

As a result, the "order real estate" came out, and the one-stop consumption of food, drink, and KTV, including department stores, cinemas, children's entertainment, and so on, was distributed to every Wanda project.

Therefore, for every undeveloped urban area, especially for the three or four tier cities, Wanda residence means "building new towns", "new landmarks" and "new centers". Why does the price of land prices not rise? In the era of increasing property market, is there still a shortage of buyers who swarm into the market?

However, although more than 5000 businesses faithfully follow Wanda's "horse race enclosure", the sunk cost of department stores, KTV and cinemas at home and abroad is too big to rush to open so many stores in many immature regions.

In order to maximize the "order property" to support the "selling rent" and grab the proceeds of housing prices, Wanda had to build its own brand and set up shop itself.

Wanda cinema, Wanda babe, big singer KTV.

It doesn't matter if stores and other private stores are not profitable, as long as they can raise the price of the "cash cow" sale property.

In fact, the department store is not a Wanda long term, and sales property has always been subsidized by stores and other private stores.

Early, because Wanda shop is the local news, short-term gathering.

Yes, and when the electricity supplier has not yet developed, the department store is going to get through.

Wang Jianlin pointed out in a recent public speech that half of Wanda's department stores were losing money and half of them making profits. After consolidated statements, they still suffered losses, and increased by 7% in 2014.

After the listing of commercial real estate and cinemas, plus the cooperation with the fund and the acquisition of fast money, it is not a problem to keep the department stores "maintained".

Since the beginning of this year, the Department of Wang Jianlin's "four pillars" (commercial, cultural, financial and electronic commerce) has been missing.

In the second half of the year, the acquisition of mergers and acquisitions will cost 17 billion. In the second half of this year, 3 foreign companies and 3 large domestic enterprises will be completed. The 24 billion of IPO's merger is far from enough.

The problem is that money has been smashed in, the pformation has not seen the effect, the electricity supplier plate has replaced two CEO and two COO in three years; the joint Tencent and Baidu have not yet taken wing to Wanda; mastering more than ten thousand cash registers and integrating financial resources under the line is only a wonderful story.

The housing market is still in the rain. The Wanda mode can't play anymore. The housing market is constantly stimulated and the money is loose. The property market in the three or four tier cities such as "stagnant water" is in the selling period for 30-50 months, plus the construction and approval has not been built. Over 5 years is a conservative estimate.