The plight of convenience stores

Convenience stores do not make money: Shanghai multi-brand closing adjustment

"7-11 convenience stores in Taiwan in China generally 7 years or so can recover costs, and in Shanghai does not seem to have such an example, even in the whole of Shanghai and China's southern areas of convenience stores have not made money, this is the current situation of the entire industry." "Li Jiahao, director of public relations at the 1 Unification Super Business (Shanghai) Co. Ltd., talked about the closing tide of the 7-11 Shanghai convenience stores, very sigh," in recent years, we have introduced Merchants convenience stores, leading to the current convenience stores do not make money, and it is difficult to receive corporate income tax such an embarrassment. " ”

According to the relevant information we can not know: 7-11 is expected this year to close the adjustment of nearly 20 stores, family convenience stores also shut down the adjustment of dozens of stores in the year, Shanghai's established convenience stores, good Germany and other conditions are not objective.

In Shanghai, more than 6,000 convenience stores are undergoing a brutal shuffle. Claiming to be in the Shanghai shop Gross margin of the first 7-11, is expected to experience 2012 years after the adjustment year, the store will be closed next year to ease.

Li Jiahao also revealed that for the farming group, good Germany and so on are experiencing integration closed shop, if there is a suitable location will be considered into. "There is no question of saturation in the market, it's always a redistribution problem." ”

7-11 Shanghai "First Aid" law

At present, the Taiwan Unification Group is mainly responsible for 7-11 convenience stores in China, Taiwan, Shanghai and the Philippines business. Reviewing the year 7-11, Li Jiahao told reporters, 7-11 this year in Shanghai, the proportion of switch shop is basically 1:1, closing number is slightly higher than the number of shops, both quantity is not too much. The closing standards also have a clear period of observation, "These final choice of closed shops have been more than a year of promotional ' first aid ', and still can not save to consider turning off the observation period of at least a year."

In fact, the current situation of collective long-term losses in the industry makes the competition between convenience store companies gradually become the reality of who can derogate from the pressure as soon as possible.

Li Jiahao to reporters calculate: shop operation need to consider each factor is actually interlocking, in addition to turnover and the number of visitors, products, such as gross profit margin, deduction of all aspects of the cost finally boils down to net profit. "In particular, Shanghai rents, labor costs so high, making money very difficult." Labor costs are rising by 10% a year, with a high turnover rate. On the other hand, rental costs have risen by at least 5% in two years. ”

It is reported that the control of a good Germany, can be the two major convenience store brand farming aspects, has begun brewing shop adjustment ideas. Farming one insider has told the media that the company to make adjustments, the number of stores net increase may be reduced, "the internal standard is a single shop daily turnover of 5000 yuan to pass."

At present in Shanghai, the indented reality of dot layout quickly evolved into a head-on confrontation with the street shop, and the days of any one participant were not too good. Some marketing tools in 7-11 developed areas, such as Taiwan, are hard to replicate.

"The cost of learning is very high, especially for the small number of us in the market." Previously in Taiwan we can use five stores to wrap up the opponents, and then slowly choose to adjust and exit, crushing opponents. And in Shanghai certainly cannot do. "Li Jiahao points out.

At present, Shanghai convenience store by the Japanese, Taiwan-funded Camp Rosen, 7-11, Xisto, the whole family and the camp good Germany, can, fast passenger and other brands. In pure quantity, farming supermarket background, the number of good German stores more than 2000, 2004 into China's family convenience stores have broken the thousands, 1996 into China's Rosen until the end of August 2011 has reached 323. By contrast, the number of 7-11 near hundred is not much.

However, 7-11 aspects revealed that, because the performance of the shop is not ideal after all, after the Ming and the next few things will change. Most of the tasks of the adjustment period were largely completed in 2012.

Greater Test

In order to be able to survive the relentless shuffling of the industry, 7-11 have tried to innovate the marketing model and enrich the product line.

According to 7-11 aspects, the company has raised the number of items such as "7-premium" and "7-select" of the brand of self-owned commodities, totaling more than 65 items. In addition, night delivery services are being introduced to seek to meet the business opportunities arising from this subdivision.

"Of the 2011-year average, 7-11 in the peak season has double-digit growth compared with the previous year, and the overall performance in 2012 was also good, growing faster than the retail industry average, and the previous losses were correspondingly lower." "Li Jiahao said.

It is noteworthy that in Taiwan 7-11 in order to ease the pressure on the capital, to open the franchise mode, the proportion of the franchise even up to 85%. At the same time, the model has been tried out in Beijing, but the Shanghai area has never landed.

In response, Li Jiahao said: "The facilitation of institutional adjustment is our direction next year, but Shanghai has not yet to do this to join the plan, just doing internal testing and evaluation." After all, joining the system needs to be cautious, behind the strong logistics system (logistics distribution, accounting, management, engineering maintenance, etc.) to do support. ”

In addition to the need to digest peer competition pressure, E-commerce Enterprise offline physical store of the landing trend has increased the degree of competition.

Member of China Logistics and Supply Chain Alliance, Huanggang, the deputy general manager of the century supply chain, said on his microblog that Wal-Mart had launched a strategic transformation in the United States, opened 300 community stores in 3 years, and promoted a network convenience store in China, and planned to open 5,000 stores within 5 years. Amazon pushes offline physical store construction; Ali, BEIJING-East has been promoting community service stations (perhaps there will be "O2O" retail functions in the future). "The future of the electronic business and traditional retail of the core battlefield in the terminal convenience store, thus the new supply chain system changes will begin." ”