Retail: home appliance chain industry in the best period of development – Gome,
Summary of the report: Suning the first half of the country the United States are a substantial increase in pre-tax profit margin, but the gross margin, expense ratio and performance of both the phenomenon of divergence emerged. Behind the conflict is the inevitable development of their respective companies.
Pre-tax profit margin: Suning, Gome, respectively 1.14 and 0.72 (adjusted) percentage points.
Consolidated gross profit margin: States United States sales of integrated gross margin improved significantly by 1.4 percentage points, reflecting the combined bargaining power of the United States to enhance the country, in addition, take into account the income for tax restructuring is an important reason. Suning consolidated gross margin sales decline primarily to adjust the income structure, as well as lower gross margin products such as the proportion of computer upgrade the.
Performance indicators: 07 Suning to reverse the first half of the recent extension of the performance brought down the expansion trend. If the net wholesale revenue franchise, Suning single store sales growth 1.26%, 4.59% sales growth per unit area. According to Su Ning mid-year report of the data, comparable store sales growth of 16%. States United States to pay greater attention to improve performance, but the single-store sales, or sales and unit area decreased by 16% and 11%, a decline slowed. According to national data reported to the United States and its comparable store sales increase of 0.6%.
In the first half, Gome and Suning, respectively per square meter rent per day up 3.38% and 1.39%, respectively, 1.742 and 1.603 yuan / m * days. Net income for the wholesale stores and other business revenue, in 2007 the first half of the rent of the unit output of Suning 34.03, up 2.41%, while the rental unit of output GOME 28.57, down 14.28%. Suning rental units higher than the growth of output growth in rents.
Operational efficiency indicators: Suning's inventory turnover days were down 6.3 days; after six months of integration, countries the U.S. has been a marked improvement in inventory turnover, reaching the pre-merger level of around 45 days.
Suning sales fell 0.59 percent expense ratio, while the same countries the United States increased 0.07 percentage points.
Suning operational efficiencies, cost rate has dropped largely due to: SAP's on-line information systems and logistics integration. SAP systems to realize the purchase and Suning distribution, financial, unified billing functions, personnel streamlining, and better achieve the suppliers of electronic docking, while the focus on parent's stock funds and logistics to bring greater efficiency, In the strong market demand, including single-store sales, unit area sales, rental and sales units in both improve the performance indicators.
Overall, the country still faces major U.S. stores to adjust the pressure. Suning's store quality and less pressure to adjust. Suning flagship store accounts for 11% of the total number of stores, Gome is 5%.
3C huge market, low concentration, will accelerate the integration. Home appliance chain enterprises accelerate the transformation to the 3C chain. Integration period, 3C product gross margin decline is inevitable for the time being. However, the rapid decline in gross margin, return on sales does not necessarily lead to decline in output and unit rents, because the rates of low, fast turnaround. We believe that, after 2-3 years of market integration, 3C products, gross margin will be improved.
Home appliance chain enterprises now in the best period of development, because:
Appliance market consumption demand, consumption significantly upgraded;
In the traditional retail and manufacturing home appliances, monopoly competition, have been formed, industry gross margins are presented to improve the situation;
Appliance retail market structure is basically stable, competitive relative ease, enterprises pay more attention to endogenous growth, achieved remarkable results, performance inflection point Suning has occurred;
3C accelerate the integration of product markets, more market space to be the depth of excavation.
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