"7-11 convenience stores in Taiwan, China basically 7 years or so to recover costs, while in Shanghai there is almost no such precedent, and even in the whole of Shanghai and southern China convenience stores have not yet made money, which is the status quo of the entire industry." December 19, unified supermarket (Shanghai) convenience Co., Ltd. public **** relations office director Lai Jiahao in talking about 7-11 and other Shanghai convenience store closure of the wave of the matter, not without emotion, said, "around the years to actively introduce the investment in the convenience store, but now face convenience stores do not make money and it is difficult to receive the embarrassment of the corporate income tax."

According to previous media reports: 7-11 is expected to close this year to adjust nearly 20 stores, the whole family convenience stores also in the year shut down dozens of stores adjusted, Shanghai's local veteran convenience stores can be, good German, etc. The situation is even more unpromising.

In Shanghai, more than 6,000 convenience stores are undergoing a brutal reshuffle. 7-11, which claims to rank first in gross profit margins for its stores in Shanghai, expects store closures to ease next year after an adjustment year in 2012.

Lai also disclosed that he would consider entering stores that are experiencing consolidation and closure, such as those owned by the Agricultural and Commercial Group's Coca-Cola and Hao-De, if there is a suitable location for them. "There is no question of the market being saturated, it is never a question of redistribution."

7-11's Shanghai "first aid" method

Currently, Taiwan's Uni-President Group is mainly responsible for 7-11 convenience store operations in Taiwan, Shanghai and the Philippines. Review 7-11 this year, Lai Jiahao told reporters, 7-11 in Shanghai this year, the ratio of open and close stores is basically a ratio of one to one, the number of closed stores is slightly higher than the number of open stores, the number of both are not too much. For the shutdown standard also has a clear observation period, "these final choice to shut down the store has been more than a year of promotional 'first aid', and still can not live to consider turning off, the observation period of at least one year.

In fact, the status quo of the industry's collective long-term losses make the competition between convenience store companies, gradually evolved into a who can reduce losses as soon as possible to bear the pressure of the reality of who will be king.

Li Jiahao gave the reporter an account: store operations need to consider the various factors are actually interlinked, in addition to turnover, there are the number of customers, product margins and other aspects of the deduction of various aspects of the cost of the last attributed to the net profit. "Especially in Shanghai, the rent, labor costs are so high, it is difficult to make money. Labor costs are rising by more than ten percent every year, accompanied by a high turnover rate. On the other hand rental costs have gone up at least 5 percent in two years."

It is reported that its control of the two convenience store brands of good, can be the agricultural and industrial aspects of the business, has begun to brew the idea of store closure adjustment. An insider from the agribusiness side has told the media that the company wants to make adjustments, the net increase in the number of stores may be reduced, "the internal standard is that the daily turnover of a single store needs to reach 5,000 yuan to be considered passable".

Currently in Shanghai, the network layout of the reality of the dogfight quickly evolved into a "street store" head-to-head, any one of the participants are not too good days. Some of the marketing tactics used in 7-11s in developed regions such as Taiwan are also difficult to replicate.

"Especially for a small number of markets like ours, the 'learning cost' is high. We used to be able to put

in Taiwan with five stores.