Shanghai Nanjing West Road Smith Baron Flagship Store Closes

It has not yet come out of the nightmare of high inventory.

However, when the rents of domestic shops are rising steadily, the malpractice of the big store mode seems to have begun to be reflected in the apparel of American state.

Yesterday (April 11th), reporters found that the United States is located in Shanghai gold business district Huaihailu Road commercial circle Me&; City flagship store has quietly closed, this area of more than 2000 square meters of flagship store opening time is not long.

"The high cost of shops opened in the golden section resulted in a low level of efficiency," an industry insider told reporters. The public figures show that in 2011, compared with ZARA and H&, M was only a quarter.

An American insider, who declined to be named, told the daily economic news reporter that "the closure of the store has not expired. The reason for the closure is that the store has been in a state of loss for a long time."

In response, the representative of the company's Securities Affairs said that the store should not be reopened, and no specific explanation was given for the specific reasons for closing the store.

In 2010, the newly renovated Me&; City Huaihailu Road flagship store in Shanghai once made a high-profile appearance. But yesterday, reporters went to Me&, City flagship store in Huaihai Middle Road, Shanghai. However, they found that the shop door was tightly closed, and there was nothing in the store occupied by two storefronts, and the sign of "Me&, City" on the store had been removed, leaving only the mark once used.

The posters on the glass wall "Sale before sale" are still noticeable.

However, the door of the store was locked, and the reporter did not find any signs of decoration.

"A month ago, it was discovered that the shop was closed, and it might have been closed for a long time."

The staff of the Oriental Shopping Center next door told the daily economic news reporter, "I do not know the specific reasons for closing the store. It is estimated that it is a question of the capital chain."

Reporters found that not far east of the shop there are C&, A, H&, M two brand stores, and opposite to ZARA stores.

"General H&; M people are quite numerous; Me&; City fame is not big enough."

The above Eastern staff said.

Reporters then contacted Metersbonwe securities representative Zhuang Tao. He said the store should not be reopened, and there was no specific explanation for the specific reasons for closing the store.

"Shops are suitable to open, and they are not suitable for opening. There are many reasons. Every year, we have a store opening shop, including direct stores and franchisees. Now there are more than 4700 stores, so opening shops and closing stores are normal."

But the aforementioned insiders say that the contract between Huaihailu Road store and the owner has not expired. The real reason for the closure is that the store has been in existence for a long time.

The insiders also pointed out that the closure of Me&, City Huaihailu Road store in Shanghai is a normal business adjustment. According to it, there are two flagship stores in Shanghai, City, and five flagship stores on Nanjing Road, with an area of 2000 square meters.

But the flagship store in Huaihailu Road is not smooth in operation, "because the store has long been in a loss because of a larger difference in positioning with Huaihailu Road business district."

The reporter learned from the intermediary Office of the business circle that at present, as the international fast fashion brand enters China, the resources of big stores become very popular.

"UNIQLO, H&, M and other large stores have attracted a large number of tourists after entering the business circle, so now the rental of large shops has begun to rise rapidly."

According to his estimate, the price of shops in the business circle has risen to 80 yuan per square meter per day, and the resources of shops are still scarce.

It is estimated that the rental of more than 2000 square meters of shops in the area will cost about 50 million yuan a year.

The industry pointed out that fashion luxury brands face 20% of the consumer group, can earn 80% of the added value.

However, the big store mode is different. The big store mode has to face 80% of the consumer groups, but the profit is far less than that of luxury goods.

In the process, product categories, inventory management, turnover of goods and retail technology management become more complex. "If there is no coordination, there will be inventory pressure."

More importantly,

Yin Xufei, a real estate researcher at CIC, pointed out that for retail enterprises, rental costs generally account for about 17%, and the cost of leasing has risen rapidly in the past three years, so its operating costs are also increasing.

The rising cost of leasing has been a nationwide problem. At present, the price of the three or four tier cities has risen. This is not only affected by the price of the first and second tier cities, but also to a certain extent affected by the domestic macro environment.

In addition, Me&, City, as a large store, gathered in the Huaihailu Road international fast fashion group, "Me&, City consumption group and the consumer group of the business circle gradually revealed differences."

Insiders pointed out that

The low traffic volume has always been the embarrassment of its positioning. Although the American Apparel has repeatedly studied the fast fading brands abroad, it has begun to peel off the casual clothing for students, and has created the urban fashion brand Me& and City. However, there seems to be an impossible distance between the design and the products in terms of design and products.