We often go to shopping centers, large commercial supermarkets and other places to shop and spend money. In fact, we are all too familiar with this type of business format. Tall shopping centers, as well as large supermarkets closely related to the daily life of ordinary people, are always full of dazzling array of goods and everything they need. Due to its scale effect, mature large-scale businesses will always bring huge passenger flow, so that the shops next to these businesses also share the passenger flow they bring because of the "proximity to the water", which is always considered as one of the shops with the most investment value.
is this really the case? For shop investors, this is actually another trap. If you don't make full mental preparation, you may fall into the "dark pit" by investing in shops next to large shopping centers and large supermarkets.
Some people find it incomprehensible. These places have such good business and huge passenger flow. Isn't it often said by teachers that the key to business is "passenger flow"? Then, these places should be the best investment targets. With such a large passenger flow, next to them, isn't this just "enjoying the cool under the big tree"?
please note that this is really not the case. To invest in business, we must have a comprehensive vision and a long-term vision. Have you ever considered that this kind of shops may not only be difficult to "enjoy the cool under a big tree", but may even be "nothing grows under a big tree"? Today, let's talk about the specific reasons why such shops can't vote, and where the problem lies.
let's start with the background and situation of the whole large-scale business at present, and the author summarizes them into three dilemmas. Dilemma 1:
The mature and conservative traditional large-scale businesses are in deep trouble. With the rapid development of the city and the rise of the Internet economy, the business of the city is also changing rapidly. For a long time, in people's minds, shopping centers and hypermarkets seem to be very stable and will never stand. As a matter of fact, with the static environment of the city being broken, the business is also in a strong instability. If a mature large-scale shopping mall sticks to the rules for a long time, it is likely to bring survival problems under the impact of the new environment and new economy until it finally closes down.
At present, this kind of situation is common in China. With the rise of new urban areas, the rise of new businesses, the rise of Internet e-commerce, and the drastic changes in the shopping consumption environment, people's shopping choices have expanded and shopping methods have increased. Many famous old businesses and brands in many cities have gradually been forgotten by consumers, and gradually declined. In the case of declining revenue and losing money for years, many traditional department stores, shopping centers and commercial supermarkets have done so. In today's business environment, there are fierce changes all the time. At present, there are still many traditional large-scale businesses struggling to support, and the future and destiny are not only unknown to onlookers, but I am afraid that operators are also uncertain.
Dilemma 2
It is difficult to cultivate emerging large-scale businesses, and many emerging shopping centers and large shopping malls have few doors. This is another situation. With the expansion of the city scale, new businesses are constantly appearing. However, there is a surplus of commercial real estate in most cities. Not only have a lot of commercial real estate been left vacant, but even new businesses that have undergone rigorous market research, analysis, positioning and planning are difficult to survive. Many who can normally enter the business state are also in a state of loss for a long time. At present, this type of large-scale business is also struggling to support, and its future is uncertain. There are only two ways before them: either they are lucky to survive in the hard support or they are closed down.
Dilemma III
Most large-scale businesses basically have two forms of existence: one is their own commercial property, that is, they own property rights; The second type is leasing. Of the two forms, leasing is the main way of existence, among which, especially large supermarkets use leasing more. In order to reduce operating costs, large supermarkets usually locate in relatively remote places with wide venues, and then, through their own brands and business circle effects, drive the consumer market and activate their own businesses, such as Wal-Mart, Carrefour, Lotus and other multinational supermarket chains, all exist in this way.
in recent years, due to the influence of dynamic business environment and competitive business environment, many large supermarket chains and large retail terminals have been in poor management, unable to make profits, or even suffered long-term losses. Some businesses finally failed to survive, so they chose to rent out and leave. There are also some large supermarkets that have taken various measures such as reducing the market size or adjusting the regional market due to the strategic adjustment of their headquarters, resulting in the closure of stores or the transfer of addresses. In addition, part of it is due to the business adjustment caused by the merger and acquisition of enterprises, which finally leads to the withdrawal of large-scale businesses.
through the above-mentioned "three dilemmas", let's go back and see what problems will exist in the shops next to large businesses. Question 1:
The old traditional large-scale business is basically located in the central area of every city, and the shops around it are very expensive, and the premium rate is already very high. This is the first shortcoming. In addition, there are several risks in investing in this type of shops: first, one of the dilemmas is that the old-fashioned large-scale businesses cannot survive, which may hurt themselves; Second, the rise of new urban areas may lead to the decline of business in the old urban areas, and finally there is no business to go through; Third, the demolition and transformation of the old city completely lost the original business atmosphere.
Question 2:
For emerging shopping centers and large commercial entities, if you invest in the shops around them, you are "betting on tomorrow". The initial commercial atmosphere and popularity of emerging businesses are far from enough, and it needs a process of cultivation, which may take 3 to 5 years, and some even last for more than 11 years. The key is whether the business can be cultivated successfully. If a new business can take shape, everyone will be happy. If it can't be done, the investment of this kind of shop can be described as "losing all its money". In short, the risk is great.
On the other hand, if the emerging businesses are all self-sustaining by operators, if the gambling is right, the value-added will be fast, and the income will be far greater than that of ordinary community shops. The benefits are great and the risks are great. Not only do you have to test your eyesight, but more often you may bet on luck. Because, in the face of the future, from the policy environment, business environment to enterprise environment, many aspects will bring a lot of uncertainty, which can only be "resigned" and no one can control it.
Question 3
Facing the above dilemma 3, it will also pose a great investment risk. Shops are located in the vicinity of leased large-scale commercial bodies. If large-scale commercial enterprises are prosperous and prosperous, in most cases, they can really promote shops and increase their property value and rental potential to a certain extent. However, if we focus on 5 years, 11 years or even longer, the problems of this kind of shop will easily be seen, and its biggest risk comes from the stability of large supermarkets.
as mentioned earlier, as these large commercial enterprises are basically in a relatively remote position, the most worrying thing is that these commercial enterprises will eventually withdraw their rents and leave for various reasons. Once this happens, what you enjoy is not "enjoying the cool under the big tree", but the desolation after the evacuation of large-scale businesses, and the depreciation of shops will be an inescapable fate. The change of the whole business environment may make the desire of investment profit fail, and in extreme cases, the invested shops may become worthless rotten shops.
Conclusion
From this, it can be seen that it is risky to invest in shops near shopping centers and large supermarkets. Some of these risks are obvious, and experienced investors can see the problems at a glance, while others are hidden, which is not only invisible to investors, but also difficult for owners and operators of large-scale businesses to predict. In view of the size and scale business circle effect of large-scale businesses, once hidden risks appear, they will often change the whole business pattern of this lot, which is the most difficult to predict.
in addition, there will be "nothing grows" in shops around large businesses. Nowadays, shopping centers and large supermarkets are usually "one-stop" shopping consumption, including shopping, leisure, entertainment, catering and other formats, which has a strong siphon effect. It seems that this area is full of flowers, but in fact, all consumers are going to large-scale businesses, and the huge passenger flow has nothing to do with your shop. In particular, some shops with poor locations can hardly attract consumers to stay, and completely become "accompanying guests" and a false landscape of "making wedding clothes for people". Therefore, they eventually become victims of "nothing grows under the big tree".
The same shops, community shops mainly relying on the consumer groups in residential areas, are more viable, more capable of maintaining value and more stable in investment than shops around large commercial bodies. If shopping centers and large-scale supermarkets are closely connected with the community, buying community shops should also be close to residential areas as far as possible, not to large-scale businesses. Nowadays, the competition of enterprises has been in a super-competitive environment, and the stability of business forms has become worse and uncertainties have increased. It is a wise choice to invest in shops if they don't want to bring more gambling in them and stay away from large commercial bodies.