Jinying General Store Intends To Close Xi'An Xiao Zhai Store

Learned from Jinying department store that it intends to close the Xi'an Xiao Zhai store. The reason is that since the beginning of this year, the owner of the store will occupy part of the business area of the Golden Eagle department store. The two sides have been in dispute for a long time. Jinying department believes that the shrinkage of the business area will seriously affect the operation of the store, so it decides to close the shop.

The industry believes that this incident highlights the short board of retail leasing mode.

Jinying department store revealed that its Xi'an Xiao Zhai store has been operating for about 3 years, and its performance has been good. Last year's annual turnover was about 200 million yuan, so Jinying department store has been more satisfied with the store. However, the shop has a shortcoming - its business area is not large, only about 20 thousand square meters, while the same department store is at least 50 thousand square meters, and even some pformation projects can reach 100 thousand square meters.

And the shop is a rental property, not a property owned by Jinying department store.

"Just at the beginning of this year, the owner of Xi'an Xiao Zhai store proposed to use part of the first floor and the two floor of the store, and they had to operate their own retail formats themselves.

We have only about 20 thousand square meters of area, and then cut out part of the business area further shrink, which will directly affect the performance.

So we agreed with the owner, but there was no agreement, so we subsequently filed a lawsuit on the grounds of breach of contract.

After a period of dispute, we assessed and decided to close the Golden Eagle department store in Xi'an. This is the most suitable plan for us now.

As for members of the store and other consumer related matters, we will handle them properly.

Golden Eagle department store internal staff said.

Reporters learned in the interview that as the department stores in recent years, the market is low, so Jinying department stores and other industries are facing enormous pressure, department stores have taken into account the pformation, Jinying department store in Nanjing trial water pformation shopping center mode, and even plans to introduce aquarium and other retail formats combined with the retail industry to pull.

and

。

A big problem in department stores is that the business area is too small to experience consumption. Therefore, although the business performance of Xi'an Xiao Zhai store is acceptable, it is difficult to maintain operation once the area shrinks.

"Further,

The leasing mode is also a major drawback, because the lease is limited, and even during the tenancy period, it may conflict with the owner so as to terminate the contract or cause a lawsuit. After that, the Pacific department store in Beijing was also closed because of conflicts with the owner.

However, a lot of money is needed for self-sustaining property, so many department stores and super businesses can only take the leasing mode, which is often seen as a result of the owner's dispute.

Mr. Shen, a senior retailer who has worked in a large retail group for many years, analyzed Mr. Shen.

In this regard, Jinying department store said that they also realized the problem of the leasing mode, so most of the stores that had good performance had taken the property management mode to control the operation.

At present, there are about 25 stores in Jinying department store, and the proportion of 60%~70% is self-sustaining property stores. It hopes to participate in capital participation in the process of pforming the shopping center in the future, so as to enhance the retailer's own right to speak.