Emboldened local retail enterprises.docVIP

 PAGE \* MERGEFORMAT 4 Emboldened local retail enterprises 3 years ago, step by step introduction of the international management team of 20 people to three years, in addition to bringing the store environment, display and category upgrade, more important is the cost advantage. Fill disclose Better Life Commercial Chain Co., Ltd., King 3 years, employee wages for several years to achieve a growth of 20%, but the expense ratio continued to decline this year’s expense ratio is about 16%. Specific figures may the king fill disclose the expense ratio also some reservations but even now cost rate, backgammon significance of the net profit margin improved and market competitive advantage has been self-evident. Expense ratio in the 16% of the retail enterprises belong to the normal level of about 18% to 20%, but most of them, and some may be higher, while corporate profits are basically in this range, therefore, reduce the overall expense ratio also means that the net profit margin direct growth. This is today the retail facing severe problems: To survive, not how, but whether they can find the continuing growth mode. Because 30% of the overall cost of each enterprise rents and labor costs, the overall expense ratio in existing infrastructure, rapidly rising 5% in this pressure, three years after the supermarket rely on existing models is difficult to survive. This point, the point of view of Wang Wei, general manager of Anhui Music City Investment Co., Ltd. without reason: companies believe that rental costs rose too fast, but this is irreversible, think of your rent affordability, in the final analysis, operating earnings lack of capacity in other words, 35% to 45% of gross profit or significantly reduce the expense ratio, the companies do not have fear of rising rents. Backgammon and other local enterprises have such strength and emboldened. Located in Gongyi City, Henan Province, located in the four-tier market, gold is good to supermarkets and stores i