Full-time convenience store seeks to sell or will sell part of the equity to Suning Tesco

On November 14th, the market structure of the convenience store in Beijing may have changed greatly. On November 13, Beijing Business Daily reporter learned from a number of people familiar with the matter that the Beijing local convenience store brand seeking to sell is negotiating with the company at full time, or will transfer part of the equity to Suning Tesco or Wumart.

In fact, the full-time convenience store has long been “shaky”. A reporter from the Beijing Business Daily found that there were not many goods on the shelves in a number of full-time convenience stores in Beijing, and they were almost empty. This out-of-stock phenomenon has been going on for more than a month, and some suppliers have stopped supplying full-time convenience stores due to problems such as unpaid accounts.

Since the second half of the year, the full-time brothers have lived in full-time life and the Earth Harbor has been in trouble. According to a close source of the parent company Fuhua Excellence Business Management Co., Ltd., the Beijing Commercial Daily reporter revealed that the finances of the full-time convenience store and the global port are relatively independent, and the daily operating funds need to apply exclusively to the group. The Earthport has been closed down recently. The convenience store is better than the Earthport. It is supported by the Group’s protection, but it is also “scarred.”

Full-time convenience stores have long been regarded as the largest convenience store brand in Beijing stores, with four or five hundred stores in Beijing. If the whole time is successful with Suning Tesco, it means that the convenience store market in Beijing will usher in a major reshuffle.

From neighboring convenience stores to 131 convenience stores and full-time convenience stores, it has been proven that a capital-driven convenience store development model will not work.

Huang Jiangming, deputy dean of the School of Business of Renmin University of China, told the Beijing Business Daily that convenience stores are high-cost, high-input, high-profit three-high format, and many people only saw its high profits, and did not hesitate to kill during the hurricane period. Entering the market, but neglecting the premise of high cost and high investment. Throughout the world’s more successful convenience store brands, behind the big capital, large groups, in order to successfully achieve the high return after undertaking high costs and high investment. The capital involved in such things as the convenience store next door is full of instability. It is impossible to guarantee the sustained high cost investment required for the convenience store format. The result of too fast expansion must be the break of the capital chain.

However, in recent years, the Beijing market has also welcomed the favorable policies in the convenience store sector, which has boosted confidence for the next development of convenience store companies.

On October 18th, the seven departments of the Municipal Commerce Commission jointly issued the “Notice on Printing and Distributing Certain Measures for Further Promoting the Development of Convenience Stores”, and proposed 19 innovative measures covering the spatial location of outlets and the layout of outlets. The project category, registration approval and other aspects support the development of convenience store enterprises in Beijing.