The number of stores in department stores is developing rapidly, and leading department stores in various regions are expanding. However, following me, let's take a look at the problems existing in the operation and management of department stores.

Problems existing in the operation and management of department stores: excessive competition in the same industry

1. The life of the format is aging, and the competition in the same industry is over-expanded

Every 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, the 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 the 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 rate expectations further worsen the income level of the industry.

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

The department store is a relatively old retail format, and its single store area is usually 1,-2, square meters. The service provided by the department store to customers is comprehensive and thoughtful, so the labor cost is high. In addition, the department store's requirements for location, variety and complexity of management 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 business characteristics, and can't 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 that of sales, and the effect of reducing losses is not ideal.

3. The repeated construction is serious, which reduces the profit level of enterprises.

Because many cities measure their economic development by the number of department stores, in this case, there are still nearly 1 large shopping malls built and opened in succession throughout the country, 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 it is inevitable to be difficult to operate. If we consider 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, businesses have reduced profits to a minimum, 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

1. Backward management concept and management mode

Although large department stores are being built or expanded, the most important management concept and management technology for managing department stores

have been standing still, and at most, they are doing articles on expanding area and upgrading decoration. Judging from the current situation, large and medium-sized shopping malls have the same positioning, 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 sales and purchase, 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

Most traditional department stores with complete varieties have been struggling. This is especially true for the domestic department store industry, which has little innovation in its management mode, resulting in a continuous decline in competitiveness. In terms of market positioning, most department stores are targeted at young white-collar consumers, and there are not many specialty department stores. There is no silver-haired commercial building dedicated to elderly consumers, which is 15? There are also few professional commercial buildings for 2-year-olds, not to mention pregnant women's shops and baby shops. There is also a lack of personalized strategic combination in terms of product variety, price and promotion channels, which has continuously intensified the competition among the same type of shopping malls, and the road is getting narrower and narrower. Therefore, the innovation of business model has become a top priority for the department store industry.

3. There is a lack of hot commodities in the market

At present, the income of urban and rural residents has improved to a certain extent, and the demand for popularization and food and clothing has been basically saturated, while the new high-level purchasing power has not yet formed, and the demand for enjoyment and development with higher grades is still in place. Out of reach? The situation. In addition, residents' purchasing power is diverted in large numbers through multiple channels, and the demand for commodity consumption will gradually weaken in recent years. Therefore, it is difficult for hot commodities to appear in the consumer goods market. 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 the consumption of keeping up with the joneses is no longer pursued. With the widening income gap among residents, a new round of high-grade consumer goods, such as private cars, houses and home computers, which are limited to high-income families, has not formed a market hotspot. 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

Advantages

However, seeing that department stores have incomparable advantages over other retail formats, luxurious decoration and thoughtful service make buyers get great psychological satisfaction, which can sometimes cover up the impact of high prices and cumbersome procedures. The relatively complete categories will also give consumers more choices to meet their subtle individual needs, and the outstanding brand image will add a sense of success, satisfaction and Excellence to their shopping.

Disadvantages

The most obvious disadvantages of department stores are the points mentioned above. The prices of goods are not as low as those of large-scale comprehensive supermarkets, and the advantages of brands and technologies are not as prominent as those of specialty store. Compared with the Internet, they 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 recognized. The cumbersome payment method wastes many consumers' shopping time, 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 on department stores. Characteristics of department stores

Growth period

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

2) the benefit is good. Department store operators in the growth period are expected to obtain good operating benefits. ? General sales profit rate can reach 5? 1%。

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

mature period

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

2) The profit level has declined. Due to the increase of enterprises in the industry, the competition is intensified, and finally the profit level is reduced, so the whole industry can only operate at a low profit.

3) Sales per unit area decreased. In the growth period of enterprises, there is a positive correlation between the growth of business area and the growth of sales, that is, sales will increase with the increase of business area. However, an obvious feature of entering the mature period is the sharp decline in sales per unit area.

recession

the so-called recession refers to a continuous rather than accidental decline in commodity sales in the entire 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) The social demand is declining continuously. Because the new retail format has entered the market and has strong vitality, consumers no longer favor the department store as a format, but move to a new format.

2) The industrial benefits continue to decline, resulting in industrial losses. When the department store, as a form of business, has been unable to make ends meet and achieve profitable operation, it shows that the recession of the department store has come.

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