High rent into a chain home mall nightmare Ou Yada multi-site withdrawal store

"The business area of ​​more than 2,000 square meters, the huge investment of nearly 10 million yuan, the three-year contract is still less than one year, so let us say that we withdraw and withdraw?" Mr. Ge, the merchant of Hangzhou Ouyada Binjiang Store, is full of anxiety and speech. dissatisfied.

On June 15th, June 18th, and June 21st, in a short period of one week, the merchants of Hangzhou Ouyida Binjiang Store received consecutively from Zhejiang Zhongnan Construction Group Co., Ltd. (hereinafter referred to as “Zhejiang Zhongnan Construction”). As well as the store operator Hangzhou Jiangbin Ouyada Home Furnishing Co., Ltd. (a subsidiary of Wuhan Ouyada Home Group, hereinafter referred to as “Ouyada Binjiang Store”): On June 27, 2013, the facilities and equipment in the mall will be discontinued. Prior to the withdrawal procedures, the goods were vacated and returned to the store.

Hangzhou Ouyida Binjiang store to withdraw? The reporter immediately contacted Huang Geng, general manager of Hangzhou Ouyada Home Area. In this regard, Huang Geng did not make a positive response. It only indicated that there were some problems in the cooperation between the two parties, but the group level is still actively communicating.

Hold on to the ground

Most merchants are still operating

According to the "Evacuation Schedule" given by the shopping mall to the business owner, the 27th, which is today, is the final final withdrawal date. However, yesterday, the reporter visited Ouyida Binjiang Store on the spot and found that in addition to some small merchants that had originally expired or were not well-managed, a large number of merchants were still "holding their positions."

"If the contract does not expire, we must withdraw the site. How do we calculate the cost of the store decoration? Who will bear the loss?" Many business operators who did not want to be named told the reporter that although they were asked to withdraw, they were withdrawn early. Ouyada has not responded to the merchant’s claim for compensation for the loss caused by the business. This means that when you take the initiative to withdraw, you face huge losses.

"This news is too sudden, we did not know before." In the building materials area of ​​the Ouyida Binjiang store, some merchants have recently renovated the store in 1-2 months. A energy-saving curtain company from Jiangsu, even just introduced by investment, opened on June 1.

The person in charge of the curtain shop told the reporter that as the company's first direct flagship store in Hangzhou, they took a 600-square-meter business area and signed a four-year lease contract at the first floor of the Eurasia Binjiang store building materials hall. The renovation fee alone cost more than 500,000 yuan. Up to now, the opening of the business has not yet "full moon", it was asked to withdraw from the scene, the development of the situation is too dramatic, "completely caught off guard, I feel very embarrassed."

Grab the beach in Hangzhou

Ouyada's "blood-based" investment

What is the problem with the cooperation between Zhejiang Zhongnan Construction and Wuhan Ouyada Home? According to the two announcements before and after the construction of Zhongnan Construction in Zhejiang, the problematic problem was: Wuhan Ouyada home long-term arrears of rent, serious breach of contract.

According to the announcement, since the signing of a lease between Zhejiang Zhongnan Construction and Wuhan Ouyada Home in November 2009, Ouyada Home has basically not paid the rent on time according to the contract, and has repeatedly and long-term defaults and serious breach of contract. In May of this year, on the grounds of poor management, the unilateral proposal was made to terminate the contract.

Is this the case? Until yesterday afternoon, the reporter failed to get a reply from the senior staff of Wuhan Ouyada.

However, according to informed sources, from 2008 to 2010, foreign chain home enterprises have rushed to Hangzhou, in order to quickly seize the gold home business district and key locations, start the East China engine with Hangzhou as the core, Wuhan Ouyada home is indeed in Hangzhou Sandian (Qiu Tao, Tianyi, Binjiang) spent the "blood".

In particular, the volume is equivalent to the sum of the other 2 stores, the scale of 120,000 square meters of Hangzhou Ouyida Binjiang store. The Ouyida Riverside store rents up to RMB 75 per square meter. According to this calculation, the annual cost of shopping mall rent alone is more than 90 million yuan. Coupled with the operation management of the mall and personnel expenses, the annual hard expenditure of the mall exceeds 100 million yuan.

Weak market

It is difficult to maintain the operation of the mall

Corresponding to such high operating costs, as the main source of income for the mall, the retail rent, in the two years since the opening of the Ouyida Binjiang store, it has not been able to achieve rapid and steady improvement due to many internal and external factors, leading the entire mall operation into a virtuous circle.

According to the current rental price of shops in the Ouyida Binjiang store, the negative 1st floor and the first floor are 130 yuan/square meter, the second floor is 120 yuan/square meter, the third floor is 115 yuan/square meter, and the fourth floor is 80 yuan/square. On the basis of this, according to different brands, as well as the location, the size of the area, the upper and lower slightly floating, while enjoying the reduction policy, the reduction time from 2 months to 6 months.

"We can count the accounts." Industry insiders told reporters that the rentable area of ​​a home market can be used 2/3 to 4/5 depending on the reasonable structure of the property. The other 1/5 or even 1/3 of the area is a public space for shopping malls that cannot generate revenue, including aisle reservations, picking up air courts, floor dead corners, fire exits, office areas, and so on.

That is to say, the Ouyida Binjiang store leases 120,000 square meters from the “landlord” Zhejiang Zhongnan, and the practical leaseable area does not exceed 100,000 square meters. And the annual rent of more than 90 million is distributed to each store. The average cost of rent on each floor of Ouyida Binjiang Store is as high as 90-100 yuan / square meter, which does not include the annual marketing expenses, shopping mall management and personnel expenses of the mall. .

"According to this rent level, coupled with preferential policies, the current operation of Ouyida Binjiang Store will inevitably face a large loss."

Loss withdrawal

The "cost" of a rapid expansion strategy

Open a shop nationwide! Opened is Pandora's Box.

At the beginning of 2008, it quickly jumped out of the regional market and stood at a high level of national strategy. It became a group of home chain circulation enterprises such as Red Star Macalline, Ouyada Home, Real Home, Yuexing Home, and Hundred Years Home. A hundred meters competition of strength and ability. The 100 stores in China, which are among the leading companies, have a huge plan for 200 stores, which has pushed the scale of the entire Chinese home furnishing industry into the era of “Great Leap Forward”.

In this process, the parties to the secret game have also chosen different ways of expansion. Among them, the use of the rental system to do "two landlords", the opening of the store competition, to seize the new city's land, has become a "profit weapon" for many companies to expand rapidly, trial and error, including Wuhan Ouyada home.

Then, in 2011, the tide of market closures that swept through the entire home chain industry began to prove that it was a “double-edged sword” to open a store on a lease basis. Especially when the number of home stores is seriously over-extended, the homogenization of household products is serious, the whole industry enters a period of weak consumption, and the instability of retail revenues increases. The high rental cost per year of leasing stores has become a pressing step by step. A "blade" for the throat of the chain home business.

"The next day, rental home stores will face a more severe test." In the eyes of the industry, the impact of foreign callers, frequent homogenization activities, numerous competitors, consumption tends to rational Hangzhou market, many rental stores The road to survival will enter the era of "knife dance".

Our reporter will continue to follow up on the follow-up progress of the “Ouyada Riverside Store Exit” and handle the issue of quality after-sales protection for consumers purchasing products in the mall. Just on the eve of the reporter's deadline, it was reported that Zhejiang Zhongnan Construction and Wuhan Ouyada Home have returned to the negotiating table, and Zhejiang Zhongnan Construction may completely recover the management rights and operate the mall. "If this is the case, it will be a positive for both merchants and consumers. It is just a change to a 'landlord', which is conducive to a smooth transition of the mall." Mr. Ge said.

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