Liu Qiangdong Declares War On WAL-MART, Shuffle Or Arrival Of Traditional Retailing Industry

In late August, Jingdong, Gome and Suning announced their first half earnings. Jingdong won the first place in 51 billion 270 million, and Suning ranked 51 billion 150 million in second. According to anecdotal rumors, Liu Qiangdong has already set a goal in Jingdong, "do WAL-MART online, challenge WAL-MART next."

Compared with recent performance data of supermarket listed companies, the rapid development of electricity providers has already threatened the survival of traditional supermarkets.

　　 cost High and soft

Despite the decline in operating performance, the times weekly reporter combed Wuming business, Beijing Jing Kelong and Hualian comprehensive performance report in the first half of the year, and found that the number of stores in three supermarkets is still increasing.

As of June 30, 2014, wumart The number of retail outlets was 545 (541 in the same period last year), including 160 large supermarkets and 385 convenient supermarkets, with a total sales area of about 844760 square meters (777167 square meters in the same period last year). During the reporting period, 6 new outlets were set up in the new supermarket, 7 new outlets, and 1 new trusteeship convenience stores.

But it is worth noting that the adjustment of stores in Wumart business is continuing, especially in the large direct supermarket. During the reporting period, there are 6 new supermarket outlets, compared with the 28 new stores opened in the same period last year. In addition, 7 franchised stores were closed.

As for Beijing Jing Kelong, which is only next to Wuming's commercial outlets, as of June 30, 2014, the total number of retail outlets was 287, including 197 Direct stores and 90 franchised stores, with a total business area of 324439 square meters.

In the first half of this year, Beijing Kelong opened 14 new retail outlets, including 8 convenience stores and 6 convenience stores. In addition, 1 comprehensive supermarkets and 4 convenience stores were renovated and renovated. By the end of June this year, there were 9 new stores in Hualian, and more than 100 stores in more than 20 provinces, municipalities and autonomous regions in China.

In fact, in recent years, supermarkets have been hovering on the margins of net profits. Rents rose, labor costs rose faster than sales growth and new shops grew longer, and other factors led to a decline in the overall industry profits.

Earnings data show that, while operating in stores, the corresponding cost factors have been pressing on operating revenue. Its performance is still high operating costs, business tax and additional, sales and management costs continue to increase compared to the same period.

Beijing's three largest supermarket business, Wumart business has the highest turnover. According to the data, Wuming's business revenue reached 10 billion 433 million yuan in the first half of the year, sales revenue was 9 billion 212 million yuan, and the selling cost was 8 billion 311 million yuan.

In the first half of this year, the total revenue of Hualian union was 6 billion 800 million yuan, while its operating cost was as high as 5 billion 365 million yuan. In the same period last year, the total operating income of the Hualian union was 6 billion 438 million yuan and the operating cost was 5 billion 107 million yuan.

Beijing Jing long long in the first half of 2014 reporting period, operating income of 5 billion 446 million yuan, operating costs of 4 billion 339 million yuan, the same period last year operating income of 5 billion 97 million yuan, the operating cost of 4 billion 25 million yuan.

The industry generally believes that the high cost of store rentals, labor costs, utilities and other expenses is the main reason for the high operating costs of traditional supermarkets, and the current sudden rise of electricity business can greatly reduce the budget in the above costs.

　　 Industry shuffle Or coming

In fact, a number of listed supermarket businesses are worried about the impact of the electricity supplier on the traditional supermarket industry.

"As the traditional fast moving consumer goods wholesale and retail industry, the company faces challenges as well as opportunities for development. The rapid development of Internet technology and mobile Internet technology has quietly changed the trading process and rules of the traditional retail industry. The group clearly realizes that online and offline integration is an important direction for development." In the annual report, Jing Kelong can represent the voice of most traditional supermarkets.

"As our industry, we still need to work hard from internal goods and services, which is the essence of a traditional retail business", Zhang Xia, investor relations manager of Beijing Jing long long company, told the times weekly reporter.

Zhang Xia believes that in the current overall downturn in the market environment, including the impact of e-commerce, the rise of labor and hydropower costs in recent years, the entire industry is facing such a situation.

"If we want to improve our performance, we need to study the changes in consumer habits, adjust the commodity structure and give full play to our strengths to avoid weaknesses," Zhang Xia told reporters.

Apart from the industry shock, the competition between traditional supermarkets is also giving rise to the tide of industry shuffling. In the big cities of North, Shang, Guang and other business circles, the performance is very obvious. Take Beijing business circle as an example, the competition of traditional supermarket enterprises has been very intense, and the influx of foreign capital is more intense competition.

During the interview, many industry insiders told times weekly reporters that Beijing's business super has entered the era of survival of the fittest. In the first half of the year, under the combined influence of factors such as the low consumption, the impact of the electricity supplier and the restriction of "three public consumption", the decline of retail companies's operation is expected.

From the macro data, in the first half of 2014, the national economy showed a steady and orderly trend. The total retail sales of consumer goods increased by 12.1% over the same period last year. According to the European Perspective (Euromonitor) of the world famous consumer market research institute, the sales volume of China's supermarket retail industry will grow at a compound growth rate of 5.6% in 2013-2018 years, and the retail market in China still has great potential for development.

Nevertheless, the overall retail competitiveness of the retail industry is anxious. Retail sales are growing rapidly and huge investment. The whole industry will be integrated. How will the development of China's supermarket retail industry be seen?