Investment shops should stay away from shopping centers and large supermarkets? Industry expert analysis

We often go shopping in shopping centers, large supermarkets and other places. In fact, we can't be familiar with this type of business format. Tall shopping centers, as well as large supermarkets closely related to the daily life of ordinary people, are always full of dazzling array of things. Mature large-scale businesses always bring huge passenger flow due to their scale effect, so that the shops next to these businesses also share the passenger flow they bring because of "the advantage comes first", which is always considered as one of the shops with the most investment value.

Is that really the case? For shop investors, this is actually another trap. If you are not fully prepared, you may fall into the "dark pit" by investing in shops next to large shopping centers and supermarkets.

Some people find it incomprehensible that the business in these places is so good and the passenger flow is so large. Isn't the teacher always saying that the key to business is "passenger flow"? Then, these places should be the best investment targets. With such a large passenger flow, next to them, isn't this "enjoying the cool under the big tree"?

Please note that this is not the case. To invest in business, we must have a comprehensive vision and a long-term vision. Have you ever considered that such shops may not only be difficult to "enjoy the cool under a big tree", but even "nothing grows under a big tree"? Today, let's talk about the specific reasons why such shops can't vote, and where is the problem.

First of all, the background and situation of the whole large-scale business at present are summarized as three dilemmas. Dilemma 1:

Mature and conservative traditional large businesses are in deep trouble. With the rapid development of the city and the rise of the Internet economy, the business of the city is also changing rapidly. For a long time, in people's impression, shopping centers and hypermarkets seem to be very stable and will never stand. In fact, as the static environment of the city is broken, business is also in a strong instability. If a mature large-scale shopping mall sticks to the rules for a long time, it is likely to bring survival problems under the impact of the new environment and new economy until it finally closes down.

At present, this situation is not uncommon in China. Under the background of the rise of new urban areas, new business forms, internet e-commerce and drastic changes in shopping consumption environment, people's shopping choices have expanded and shopping methods have increased. Many famous time-honored merchants and brands in many cities have gradually been forgotten by consumers and gradually declined. In the case of declining revenue and years of losses, many traditional department stores, shopping centers and supermarkets have quietly closed down. In today's business environment, drastic changes are taking place all the time. At present, there are still many traditional large-scale businesses struggling to support, and the future and destiny are not only unknown by onlookers, but also uncertain by operators.

Dilemma 2

The cultivation of emerging large-scale businesses is difficult to mature, and many emerging shopping centers and large shopping malls are nowhere to be found. This is another situation. With the expansion of the city scale, new businesses are constantly emerging. However, most cities have a surplus of commercial real estate. Not only is a large number of commercial real estate vacant, but even the new format that has undergone strict market research, analysis, positioning and planning is difficult to survive. Many people who can enter the business state normally are also in a state of loss for a long time. At present, this kind of large-scale business is also struggling to support, and the future is uncertain. There are only two ways in front of them: either survive in hard support or go bankrupt.

Dilemma 3

There are basically two forms of large-scale commerce: one is its own commercial property, that is, holding property rights; The second is leasing. In these two forms, leasing is the main way of existence, among which, especially large supermarkets use leasing more. In order to reduce operating costs, large-scale supermarkets usually locate in relatively remote and spacious places, and then drive the consumer market and activate their own businesses through their own brands and business circle effects. Multinational supermarket chains such as Wal-Mart, Carrefour and Lotus are all like this.

In recent years, due to the influence of dynamic business environment and competitive business environment, many large supermarket chains and large retail terminals have been badly managed, unable to make profits or even lose money for a long time. Some businesses can't survive in the end, so they choose to rent out and leave. There are also some large supermarkets that have taken various measures such as reducing the market size or adjusting the regional market due to the strategic adjustment of their headquarters, resulting in the closure or address transfer of their stores. In addition, part of it is the business adjustment caused by enterprise merger and acquisition, which eventually leads to large-scale business withdrawal.

Through the "three dilemmas" mentioned above, let's go back and see what problems will exist in the shops next to large businesses. Question 1:

The old traditional large-scale businesses are basically in the central area of every city, and the shops around them are very expensive, and the premium rate is already very high. This is the first shortcoming. In addition, there are several risks in investing in such shops: first, one of the dilemmas is that established large businesses cannot survive and may hurt themselves; Second, the rise of the new city may lead to the decline of business in the old city, and finally there is no business to go through; Third, the demolition and transformation of the old city completely lost the original commercial atmosphere.

Question 2:

For emerging shopping centers and large businesses, if you invest in the surrounding shops, you are "betting on tomorrow". The initial commercial atmosphere and popularity of emerging businesses are far from enough, and it needs a process of cultivation, which may take 3 to 5 years, and some even last for more than 10 years. The key is whether the business can be cultivated successfully. If a new enterprise can take shape, everyone will be happy. If it can't be done, the investment of such shops can be described as "nothing to return". In short, the risk is great.

On the other hand, if all emerging businesses are self-sustaining by operators, if the bet is right, the value-added will be fast and the income will be far greater than that of ordinary community stores. The benefits are great and the risks are great. Not only do you have to test your eyesight, but more often you may gamble on your luck. Because, in the face of the future, from the policy environment, business environment to enterprise environment, many aspects will bring a lot of uncertainty, which can only be "resigned" and no one can control it.

Question 3

Faced with the above dilemma 3, it will also cause great investment risks. The store is located near the rented large commercial organization. If large commercial enterprises are prosperous, they can really promote shops in most cases and increase their property value and rental potential to a certain extent. However, if we focus on five years, 10 years or even longer, the problems of such shops are easy to see, and the biggest risk comes from the stability of large supermarkets.

As mentioned above, because these large commercial entities are basically in a relatively remote position, the most worrying thing is that these commercial entities will eventually withdraw their rents for various reasons. Once this happens, what you enjoy is not "enjoying the cool under the big tree", but the desolation after the evacuation of large businesses, and the depreciation of shops will be an inescapable fate. The change of the whole business environment may make the desire to invest in profit fail. In extreme cases, the invested shops may become worthless rotten shops.

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It can be seen that investing in shops near shopping centers and large supermarkets is risky. Some of these risks are obvious. Experienced investors can see the problems at a glance, while others are hidden. Not only can investors not see them, but it is also difficult for bosses and operators of large businesses to predict them. In view of the scale of large-scale business and the scale business circle effect, once hidden risks appear, it will often change the whole business pattern of this lot, which is the most difficult to predict.

In addition, shops around large enterprises will also appear "nothing grows". Nowadays, shopping centers and large supermarkets are usually "one-stop" shopping consumption, including shopping, leisure, entertainment, catering and other formats, which has a strong siphon effect. This area seems to be full of flowers, but in fact all consumers go to large businesses, and the huge passenger flow has nothing to do with your store. In particular, some shops with bad locations can hardly attract consumers to stay, which has completely become a false landscape of "accompanying guests" and "making wedding clothes for people". Therefore, they eventually become the victims of "nothing under the big tree".

The same shops, community shops dominated by residential consumer groups, are more viable, more capable of maintaining value and more stable in investment than shops around large commercial bodies. If shopping centers and large supermarkets are closely connected with the community, buy community shops as close as possible to residential areas, not to large businesses. Nowadays, the competition of enterprises has been in a super-competitive environment, and the stability of business forms has become worse and the uncertainty has increased. If you don't want to bring more gambling into shops and stay away from large commercial bodies, investing in shops is a wise choice.