subject: Suning to spend 730 million yuan purchase of real estate construction flagship store - Suning, Gome, [print this page] Suning to spend 730 million yuan purchase of real estate construction flagship store - Suning, Gome,
Suning Electrical Notice that it has spent about 730 million yuan in Shanghai, Wuhan, purchase two Estate Construction for the flagship store. At the same time, States United States , Medium and large also speed up the consolidation of their flagship store. Lot of money buying real estate shop, in the Home Appliances Channel industry is rare. Yesterday (May 9, 2007) Suning Appliance (002024) announcement that it has spent about 730 million yuan in Shanghai, Wuhan, the flagship store for the purchase of two real estate development. At the same time, Gome, Dazhong also speed up the consolidation of their flagship store. Suning acquisition of two properties are: Shanghai Far East Building, 1 to 3 layers and Wuhan Wuchang ICBC Plaza B, C, Building 1 to 5 layers. Suning notice display area, Shanghai and Wuhan to buy two properties total 532 million yuan, respectively (excluding tax), and 204 million (excluding tax), has signed the relevant contract. Sun Weimin, president of Suning Appliance, said, "Su Ning will most area of the two properties for the construction of the flagship store, set aside thousands of square meters of space rented out about other Business Enterprise. "But he said not to make the rent lease," but a market with these companies to interact with the building to enhance the commercial value. " Suning side notice that Suning will be in the core city of the future core business district, select the market capacity, high-impact commercial circulation area, by way of self and the development of chain stores buy in order to enhance the company's brand awareness. While Suning north China region Management Fan Zhijun, executive president of Headquarters, said Su Ning, Beijing is also looking for acquisitions in the appropriate large-scale stores. Fact, caused a large number of single-store shop down the profitability of home appliances have become an unavoidable issue of commercial channels. Late last year, Gome, Suning, Dazhong coincidentally launched the "big store strategy." Medium and large central TV Tower store, quaternary Bridge Shop, Gome Madian Eagle stores, Ahn Jung-shop, store Suning Ahn Jung Chaoyang Road shops and other large stores quickly emerged in the capital and became the home appliance giant, the main force to seize the market. Song Hong, general manager of Dazhong Electronics, said, foreign chains are not simply relying on the scale of expansion to achieve returns, but the strong emphasis on a single store revenues. It is understood that Japan's second largest electrical chain Youtebaxi (tone) of 28 large stores, single-store average annual output value of more than 20 billion yuan, the highest annual sales of more than 70 billion yuan. SONG that large and medium to large stores as the current focus of development will gradually reduce the stores below 3,000 square meters, but on large stores to ensure the efficient market share. Although the "flagship store marketing capabilities 'pit one against ten' core business district to consolidate strengths and effective way", but the State Council Development Research Center of Market Economy Institute deputy director Lu Renbo Market Consulting Center analysis, over 10 thousand square meters radiation of large stores can range around 5 km. At present Beijing is in the range of 5 km gathered 23 brands of large flagship store play, so easily lead to similar products and vicious competition and lead to poor operation of store closures in the competition. 's Connection Sun Weimin: rent than to buy to buy than build For the purchase or risk of self store, Suning CEO Sun Weimin has a different view, he said, In fact, home appliance business channel Lease Most stores in the 10-year period is more than halfway Surrender to pay a considerable amount of liquidated damages. The purchase of real estate funds invested in about 10 years time will be able to recover, while financial payback period of self store only about 5 years, so "shop rent than to buy the store, buy store as building shop." However, he said, Suning stores over the next 90% will be for lease, and not afraid of risk, but because of funding limitations, "the acquisition or self-built stores need a lot of money short-term decisions in this way will not be home appliances channel industry mainstream model. "
