On Saturday, Women'S Shoes Opened 3 Stores And Closed 1 &Nbsp, Causing A Sharp Increase In Inventories.

Stock

A surge.

Main women's shoes are made and retailing.

Quick opening shop

"For clothing and footwear brands, channels are scarce resources for enterprises."

Ceng Yangqing told reporters on the phone on Saturday that in the company's IPO projects, 430 million of the 570 million yuan of fund-raising had been invested in the technical renovation project of women's shoes chain store expansion, which accounted for 76.79% of the estimated total funds raised.

At that time, 1311 stores said in the prospectus on Saturday that after the implementation of the project, the company will add 900 self operated stores. It is expected that the number of self run stores will reach 2050 in 2011, that is, 900 new self operated stores in two years, with an average of 1.2 outlets per day.

However, the expansion of new stores on Saturday is not ideal. Zhang Bin, a researcher at the state securities company, said that since 2010, more than 400 new outlets and more than 200 shops have been opened, and more than 300 new outlets have been opened in 2011, with a net increase of more than 200. That is to say, 3 new stores are closed at least 1 stores, and the operating efficiency of the shops is not up to expectations.

According to the 2011 China Daily, there are a total of 1783 brand stores.

"Almost 70% of the total investment has been made, and there are altogether more than 1900 stores in the end of 2011, which is somewhat different from the prospectus."

Ceng Yangqing told reporters.

"Open shop expansion itself is the opportunity and risk coexist, this is also no way to do things, we must take risks."

Ceng Yangqing said that the shoe store is expanding with commercial real estate. When the new channels are not mature at the initial stage, the conditions are relatively loose and the company has the right to choose the market.

But if we do not go in and prove that the market is good, the conditions for shopping will be even more severe.

Ceng Yangqing said that due to the need to expand sales channels and increase company performance, store expansion must be carried out.

He admits that the company is also closing the shop in the process of fast opening stores. "Business channel matching maturity needs a process. If two years later, we still can not see the improvement trend of passenger flow, we will generally choose to close some inefficient shops, and also cause some decline in performance."

In addition, he said that some of the shops that closed were mainly "Sophia" and "69" brands other than the "Saturday" brand. "Because these brands are not mature enough to meet the national brand requirements."

Surge in inventories

The rapid opening and closing of stores caused a sharp increase in the stock of the company, and also engulfed the company's profits.

On Saturday, when the performance bulletin was released, the net profit attributable to the parent company was reduced by 0.25% over the same period last year. It was due to the rapid increase in sales and administrative expenses in 2011.

Zhang Bin pointed out that because of the fast opening of the company after the listing, the decline in the quality of operations, the increase in inventories and so on, the financial indicators were dragged down, and the profits of the new store did not contribute much.

"Cumulative inventory acceleration is indeed the most direct impact of fast opening shops, and the operating efficiency of shops is not as good as expected. Now the company's inventory is at a relatively high level."

Ceng Yangqing told reporters on the phone.

In 2011, the quarterly report of 3 companies showed that the inventory level of the company was 780 million yuan.

Guo Jin Securities researcher Zhang Bin pointed out that the company's inventory is not suddenly increased, but the cumulative results in recent years, the increase in stock mainly stems from the opening of stores, the inventory brought by the fast opening shop is very obvious.

Zhang Bin, for example, said that the opening of a new store, especially in the incubation period, requires a cost of 300 thousand yuan for a quarter, of which 210 thousand yuan is the amount of stock being prepared, and the other 12-13 are for the purpose of maintaining the turnover needs. The larger the storefront is, the larger the stocking rate will be.

At present, the increase in inventory is mainly due to the increase of boots in autumn and winter. The products were put into storage in early autumn and winter in 2011, and the stocking stock was 200 million yuan.

He said that although the company is actively handling inventory, it is expected that the process will be longer.

"The first two years are indeed the peak period for us to open a shop, but since the 3 quarter of 2011, the company has increased the examination and approval requirements for new stores, and if the new shop starts to have a longer profit and loss cycle, it will generally not examine and approve."

Ceng Yangqing said.

For surging inventories, Ceng Yangqing said that the company will increase the frequency of orders and increase orders. In addition, local stores and discount promotions will be used to digest inventory, and inventory digestion through e-commerce platform.