Sports Brand Clothing Stores Need To Improve Profitability Of Single Stores

This year, news about sports brand clothing stores has been heard for a long time. First, Gome sports closed its store and declared its 5 year 100 store plan "gone to the boil", followed by Nike's flagship store in Nanjing West Road, Shanghai, which was closed because of the rent rise. Local Anta, XTEP, PEAK and other enterprises also came to the news that they would close some of the loss stores.

Having experienced the "barbarous growth" era of scale efficiency through crazy shops, the domestic sportswear brands have already encountered bottlenecks. Under the situation of intensified channel competition and rising costs, it is impossible to expand madly. Improving the profitability of single stores is becoming an urgent task for enterprises.

　　 store Growth slowed sharply

"Although large-scale closes have not yet appeared, the slowdown in store growth is a fact." Industry observers said. This 2011 Annual Report released by major sports brand enterprises in China has been reflected. The annual report shows that the number of new stores in Lining, Anta and PEAK last year was 340, 229 and 582, much lower than the number of stores in recent years. China's trend is "the first" annual number of shops showing a negative growth rate, a drop of 16.8%.

In addition to slowing down the pace of opening stores, closing some of the less profitable stores has also become the key to the integration of sports brand channels. Lining's "closed shop storm" began in 2010. At that time, analysts said that Lining would close 500 to 600 inefficient stores, and Anta added 229 new stores in 2011, but as of June 30, 2011, the number of Anta stores increased by 295. This shows that in the second half of, excluding the new stores of Anta group, the number of stores in China last year was close to 100. PEAK also said that this year will continue to implement the strategy of "opening large stores and closing stores to further enhance the average sales area of retail outlets".

The number of 6000 stores is "threshold".

The same phenomenon also occurred in the post Olympic 2009. At that time, a number of brands or agents including Puma, BELLE, Daphne and so on had carried out a round of "shuffle" with the theme of "closing shop".

"For Sports brand For example, when the number of individual stores increases to 6000, the "bottleneck" will be encountered. Hou Lidong, the industry insider, told reporters that 6000 stores have become a "threshold" in the industry. Before that, sports brands can support performance growth by opening new stores quickly. However, beyond this scope, the speed of opening stores will obviously slow down, and the pulling effect of new stores on business performance will also be significantly reduced.

If the number of stores reached 6000 as a "threshold", then for the local sports brand, the "bottleneck period" has arrived, and the number of major sports brands in the domestic stores has exceeded this level.

Improving profitability of single stores

"If the development channel can no longer bring revenue growth and higher profit margins to the brand, then the promotion of single store sales will become the best way for the brand to maintain growth." Yuan Wei, manager of Public Relations Department of Anta (China) Sporting Goods Co., Ltd.

"Whether the same store has a meticulous operation can reflect several times the sales volume." F Leonspan, Wang Quancheng, director of outdoor marketing, told reporters that with his brand as an example, 50 to 80 square meters of exclusive stores, a better online shop monthly turnover of about 300 thousand yuan, about 100 thousand yuan in general. A single store in Xi'an last year "May Day" activities, the sales volume of 10 days to reach 2 million yuan, "visible. Single store There is a huge room for improvement in efficiency.

"Now sports brands attach great importance to a figure, that is, the performance of square meters, the higher the performance, the higher turnover rate, the higher the efficiency of single store sales." Insiders said.