Revenue edged up 1 per cent last year to RMB1.403 billion (US$203.6 million) for Shirble Department Store Holdings (China).
The Hong Kong-listed group attributes the increase to extra rental income as a result of change in strategy with concessionaire sales, as well as organic growth of direct sales.
Direct sales increased by 0.6 per cent to RMB1.122 billion for the year, mainly because of improved supermarket product mix. Direct sales comprised 51.9 per cent of total gross sales (48.7 per cent in 2015). Direct sales were 80 per cent of the group’s total revenue, compared to 80.3 per cent the previous year.
Sales from concessionaires amounted to RMB1.037 billion, accounting for 47.9 per cent of total gross sales. Revenue from concessionaire sales amounted to RMB1.167 billion, 50.9 per cent of total gross sales proceeds.
Total gross sales proceeds fell 5.5 per cent to RMB2.165 billion, mainly because of the drop in concessionaire sales in Shenzhen amid intense competition.
The group’s operating profit was RMB57.6 million, up 23.1 per cent on the previous year.
Profit attributable to the owners of the company was RMB60.5 million, an increase of 20.5 per cent.
Shirble last year launched a series of promotional campaigns to mark its 20th anniversary. One aim was to promote sales through different channels. That effort and attempts to expand into new business segments resulted in sustainable business growth, says the group.
O2O strategy
At the end of the year the group had 20 department stores, while it continued to expand i-Shirble in collaboration with other online platforms. The group is continuing to promote its online-to-offline sales strategy, establishing strategic alliances with online platforms in China including Baidu and Jingdong Daojia.
As a first mover in O2O sales strategy in Shenzhen with its network of department stores and support from online partners, the group has established a customer/member base of more than 58,000 shoppers.
In the increasingly competitive retail business market in China, the group has developed three business channels to promote customer loyalty – its department-store network, the Smart hypermarket brand and the three-storey Shirble Plaza lifestyle shopping mall, opening this year.
The group launched the first Smart store in September with a gross floor area of 3511 sqm, in the Futian district of Shenzhen. Its offers include hot food, interactive lifestyle pop-up stores, cooking classes and a children’s learning centre.
In December, the group signed with Shenzhen New Meiyiduo Investment for further expansion of Meiyiduo’s 80-plus fresh-food convenience stores in Shenzhen and Guangdong, under the Huiyijia, Meiyiduo and Xinlefu brands. The group’s plan is to enhance its fresh food offerings
on its online platform as well as at its department stores through bulk buying.
