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Shrinking Profit Pushes China's Department Stores for Changes
Time Published:2017/04/17 00:00       Browse Times:Times         News

Many Chinese Physical Stores have suffered shrinking profits last year and are shut down due to rising costs and 

impacts from the growing e-commerce market.

The total profit of 80 major Chinese department stores fell by 12.05 percent in 2015,  according to a report jointly 

released recently
 by China Commerce Association for GeneralMerchandise, and Hong Kong retailer Fung Group.

Around 150 Chinese Chain Store companies has closed their 100 branch stores in 2015, which has doubled the 

number of the ones shut
 down in 2014. Chinese general merchandise giantWanda closed 56 outlets last year.

Rising rent and labor costs has narrowed profit margins and investment on businesstransformation also added to 

the financial
pressure, Meanwhile, the swift growing e-commerce market is grabbing opportunities to attact the

countless people to enjoy online shopping.

"The top challenge for Chinese department stores is not how to deal with the impact of e-commerce platforms, but 

how to keep the domestic
 consumption demand within China," according to a report released by Anbound.

Chinese department stores are looking to transform, About 70.2 percent of the surveyed firms are stepping into

some other fields,
 as the supermarkets, restaurants and KTV, and about 85.5 percent has introduced more

interactive elements to
improve the customer experiences.