大商股份20240223

Summary of Dashiang Co. Conference Call Company Overview - Dashiang Co. operates department stores and supermarkets, facing challenges such as aging infrastructure, outdated brand positioning, and high vacancy rates in some locations, particularly in competitive areas like Shenyang [2][3] Key Points and Arguments - Aging Issues: The company’s department stores and supermarkets are experiencing significant aging issues, including outdated building structures and a lack of diverse business formats, which affects operational and leasing capabilities [2][3] - Need for Adjustment: Dashiang Co. must adjust its strategy to address the slowdown in department store growth and the impact of online shopping. This includes brand recruitment, management restructuring, and overall adjustment planning to meet the needs of younger consumers and differentiate from online shopping [2][5] - New Leadership: The new chairman, Chen Dejing, aims to find new directions for the supermarket and department store segments while ensuring overall performance growth. The initial focus will be on loss-making stores [2][7] - Supermarket Strategy: The supermarket strategy involves reducing SKU counts from 10,000 to 6,000-7,000, creating boutique supermarkets, increasing self-operated products, and enhancing product variety to attract younger consumers. Post-renovation, daily sales per store are expected to double [2][10] - Department Store Renovation: The renovation of department stores will focus on loss-making locations through product structure adjustments, experiential upgrades, and improved operational quality to enhance profitability and attractiveness [2][11] Additional Important Insights - Management Challenges: Dashiang Co. has faced management challenges due to a focus on investor returns and performance KPIs, which hindered in-depth brand recruitment and adjustments at the store level. A strong leader is needed to streamline management and ensure performance stability during the adjustment process [6][7] - Market Context: The retail environment in China is changing significantly, with department store growth slowing and shopping centers becoming saturated. Shopping centers offer better variety, brand operation capabilities, and experiential elements compared to traditional department stores [5] - Performance Metrics: The Dalian Qingniwa New Mart supermarket is performing well and is the first to undergo renovation, with an estimated renovation cost of 10 million yuan and a payback period of about one year [4][18] - Future Direction: Dashiang Co. is likely to gradually transition its main business model towards a shopping center format, focusing on the needs of middle-aged and young consumers, and increasing the presence of dining and experiential brands [29] Competitive Landscape - Shenyang New Mart: Located in a competitive area, it has been experiencing losses due to its older positioning and lack of dining facilities compared to newer shopping centers [13][17] - Dalian New Mart and Maikele: Both located in bustling commercial centers, they offer a mix of retail and dining but face challenges such as high vacancy rates in certain areas [15][16] Conclusion Dashiang Co. is at a critical juncture, needing to adapt its business model and operational strategies to remain competitive in a rapidly evolving retail landscape. The focus on younger consumers, enhanced shopping experiences, and effective management will be crucial for future success [2][5][29]