What are the problems in the management of department stores?

The number of department stores has developed rapidly, and the leading department stores in various regions have been expanding. However, on the one hand, follow me to see the problems existing in the management of department stores.

Problems existing in department store management: excessive competition in the same industry 1, aging business life and excessive expansion of competition in the same industry.

Any format has its own life cycle, and new formats will inevitably appear in the retail industry. From the perspective of developed countries in the world, department store industry is a sunset industry. In the United States and Europe, the format of department stores is declining sharply. The main formats are in order of sales profit: hypermarkets, convenience stores, supermarkets and department stores, among which the profit rate of department stores is the lowest and the best is only 2%? 5%。 Judging from the development in recent years, the construction speed of department store retail enterprises in most cities far exceeds the actual purchasing power growth level of residents. In order to expand sales and increase market share, various businesses fought a price war, thus causing commercial development to fall into a vicious circle. A large number of small retailers with low profit margin expectations have further deteriorated the income level of the industry.

2. There is no advantage in price competition, and the economic benefits are declining.

Department store is an ancient retail format, and its single store area is usually 1-20000 square meters. Department stores provide comprehensive and thoughtful services to customers, so the labor cost is high. In addition, the department store industry's requirements for location, variety and management complexity make it difficult to reduce the total cost and the commodity price is more expensive. Compared with other formats, the department store industry has neither price advantage nor obvious operating characteristics, and cannot adapt to the era of diversified consumption patterns. Due to the impact of foreign retail industry, the market share of domestic department stores has been declining, and the profit growth of enterprises is far lower than the sales growth, so the effect of reducing losses is not ideal.

3, serious redundant construction, reducing the profitability of enterprises.

Because many cities measure their economic development by the number of department stores, which means the whole country here.

There are still nearly 100 shopping malls built and opened one after another, resulting in repeated construction and serious waste of resources. Judging from the development situation in recent years, the construction speed of department store retail enterprises in most cities far exceeds the growth level of residents' actual purchasing power, and operational difficulties are inevitable. Considering that some cities are currently under construction or planning, the number of large retail malls is considerable. The intensification of competition in the same industry, to a certain extent, makes the consumer goods market with relatively stable capacity divided by more businesses. In order to expand sales and increase market share, merchants have minimized profits, and a large number of small retailers with low expectations for profit margins have further deteriorated the income level of the industry.

Problems existing in the management of department stores: lack of innovation in management, backward management concept and management mode.

Despite the continuous construction or expansion of large department stores, the most important business philosophy and management technology for operating department stores.

However, it has been marking time, and at most it is making a fuss about expanding the area and upgrading the decoration. Judging from the current situation, the positioning of large and medium-sized shopping malls is similar, ignoring their own characteristics, and there is little difference in product types, grades and counter display, showing a large and comprehensive pattern. In management, most of them follow the traditional management mode of integration of purchase and sale, two-level management and three-level accounting, which not only has high management cost and low efficiency, but also has big loopholes and big profit loss.

2. Lack of innovation in management mode.

The traditional department store industry with complete varieties has been struggling. This is especially true for the domestic department store industry, whose operation mode is very complicated.

Less innovation leads to a decline in competitiveness. In terms of market positioning, most department stores are aimed at young white-collar consumers, and there are not many specialty department stores. There is no silver-haired shopping mall specifically for elderly consumers, is it 15? There are also few professional commercial buildings at the age of 20, let alone pregnant women's shops and baby shops. There is also a lack of personalized strategic combination in product variety, price and promotion channels, which makes the competition between the same type of shopping malls intensified and the road narrower and narrower. Therefore, the innovation of business model has become a top priority for the department store industry.

3. The market lacks hot commodities.

At present, the income of urban and rural residents has increased to a certain extent, and the demand for popularization and food and clothing has basically saturated, reaching a new high.

The purchasing power level has not yet formed, and the demand for high-grade enjoyment and development is still there? Out of reach? Situation. In addition, residents' purchasing power is largely diverted through multiple channels, and the demand for commodity consumption will gradually weaken in recent years. Therefore, it is difficult for the consumer goods market to sell well. In addition, there is a fault phenomenon in household consumption. On the one hand, the consumption of urban residents has reached a new turning point, and the ownership of major durable consumer goods has become saturated, and they no longer pursue consumption that keeps up with the joneses. With the widening income gap among residents, a new round of high-end consumer goods, such as private cars, houses and home computers, are limited to high-income families and have not formed a hot spot in the market. On the other hand, the consumption level of rural residents is still low. Coupled with the limitation of consumption environment, the operation difficulty of department store retail enterprises will be further increased in the future.

Advantages and disadvantages of department stores

However, we can see that department stores have incomparable advantages over other retail formats. Luxurious decoration and thoughtful service satisfy the buyer's psychology. This satisfaction sometimes masks the impact of high prices and cumbersome procedures. A relatively complete category will also give consumers more choices to meet their subtle individual needs. Excellent brand image enables consumers to achieve success and satisfaction in shopping, and excellent quality and style satisfy their yearning for a better life and fashion.

Disadvantaged

The most obvious disadvantages of department stores are the above-mentioned points. Commodity prices are not as low as those of large comprehensive supermarkets, and brand and technical advantages are not as prominent as those of specialty stores. Compared with the Internet, department stores are limited by geography and space. In addition, the one-to-one service in department stores increases the number of contacts between salespeople and customers, and customers' purchase decisions are influenced by salespeople. The opportunities for direct communication between customers and commodities are reduced, so that commodities cannot be fully understood. The cumbersome payment method wastes many consumers' shopping time, the thoughtful service limits consumers' activity space, too many categories and varieties make consumers have to spend more time making choices, and consumers have to bear higher prices because of the high cost of services and facilities. All these have set obstacles to consumers' subconscious, making it difficult for consumers to always put the first choice of shopping in department stores.

Characteristic growth period of department stores

1) has developed rapidly. The share of department stores in the market is rising as soon as possible, far exceeding the traditional grocery stores and shopping malls with a single variety, attracting consumers with the advantages of complete product range, large scale, clearly marked price and elegant shopping environment.

2) Good benefits. Department store operators in the growth period are expected to obtain good operating benefits. ? General sales profit rate can reach 5? 10%。

3) The market is not saturated. Due to the limited number of department stores in the growing period, it is unable to meet the growing shopping needs of residents, so there is still much room for development.

mature period

1) growth rate decreased. Under the condition of limited social demand growth, due to the sharp increase of large department stores and the rise of supermarkets, convenience stores, specialty stores, warehouse stores and other formats, the cakes originally shared by various shopping malls are getting smaller and smaller. In order to maintain a certain growth rate, enterprises must strive to expand market share, thus further intensifying industry competition, leading to a general decline in the sales growth rate of enterprises.

2) The profit level drops. As the number of enterprises in the industry increases, the competition intensifies and the final profit level decreases, the whole industry can only operate at a low profit.

3) Sales per unit area decreased. In the growth period of enterprises, the growth of business area is positively correlated with the growth of sales, that is, sales will increase with the increase of business area. However, an obvious feature of entering maturity is the sharp decline in sales per unit area.

recession

The so-called recession refers to the continuous rather than accidental decline of commodity sales in the whole retail format due to various reasons. Enterprises should correctly grasp the characteristics of recession, reduce and avoid losses, and seek new breakthroughs and development.

1) Social demand continues to decline. Because the new retail format has entered the market and has strong vitality, consumers no longer favor the department store format, but switch to new formats.

2) The industry benefits continued to decline, resulting in losses in the industry. When department stores, as a commercial form, have been unable to make ends meet and realize profitable operation, it shows that the decline of department stores has come.

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