Profits of China's department stores up in first three quarters

Sales performance wars start at the of 2009

Under the context of the financial crisis, department stores that suffered the most serious impact are finally out of woods. The 2009 Q3 reports by the listed retailers show that among dozens of department stores, 90 percent of enterprises broadly increased on profits, a number of listed retailers in Beijing achieved a growth in profits. According to news from the industry, most department stores started their promotions this month with an aim to improve sales performance by the end of 2009.

Wangfujing plays leading role

Amid the listed companies, Hangzhou Jiebai, Dashang Group, Xinjiang Friendship (Group) Co., Ltd, and Chongqing Baihuo declined on net profits attributable to their parent companies. In addition, Shanghai Jiubai maintained the decreasing trend since the fist half year, however, the income of transferred shares within the report period promoted the growth of net profits in the first nine months. Excluding the companies above, Wangfujing, Beijing Xidan Department Store Co., Ltd., Bailian Group, Guangzhou Grandbuy Co., Ltd. and Xinhua Department Store Co., Ltd. and so on realized the increasing profits from January to September.

Wangfujing, the famous old listed retailer, played the leading role in sales among counterparts in Beijing. Its third quarter report showed that the total turnover from January to September reached 7.84 billion yuan, up by 4 percentage point's year-on-year. The net profits belonging to the owner of its parent company was 273 million yuan in the first nine months, increasing by 6 percentage point's year-on-year. Its growth on profits was a little higher than its growth of turnover.

Moreover, the net profits of Wu Mart's Xinhua Department Store reached 139 million yuan in the first nine months. The net profits of Q3 amounted to 44.72 million yuan, surging by 77.8 percent. Beijing Xidan Department Store Co., Ltd. and Beijing Urban-Rural Trade Center Co., Ltd. achieved net profits of 29.51 million yuan and 50.97 million yuan respectively in the first nine months.

Some unlisted corporations' performance also soared. Shin Kong Place's sales reached about 3 billion yuan in the first 10 months, its sales and profits surged 30 percent year-on-year.

Driven by domestic economic recovery, with increased consumer confidence plus promotions by department stores, the department store industry began to come out of the woods in Q3.

By People's Daily Online