When we usually go shopping, we can see that those shops on the street will change every once in a while. What caused these physical stores to close in large areas? Many bosses will respond that it is not our peers who beat us, but the high rent.

At the beginning of each year, it is a time when great changes have taken place in physical stores. For shops with too high rent, the boss can only choose to close down. However, the landlord will not feel that the store will not make money if it closes. On the contrary, for Wangpu, there is no need to worry about no one renting it, and it is just right to raise the rent for another person. Even if there is a gap of one or two months in the middle, the deposit of tens of thousands of the last tenant is enough to make up for it.

Now the big head of opening a physical store is on rent. With the construction of the city, the house price is getting higher and higher, and the rent is also getting higher and higher. In the early stage of opening a store, the business was not booming. All kinds of early investment and high rent made many shops with flat business unable to make ends meet. They often failed to support it after opening for a year or several months and had to close their doors and transfer it. In addition, the development of e-commerce is getting better and better now, and many stores simply cannot compete with it. Business is not as good as before, and the rent is higher every year, which is an important reason to accelerate the closure of physical stores.

A friend opened a pet shop, with a monthly rent of 20,000 yuan and a monthly profit of 1 10,000 yuan excluding the rental cost. At the beginning of this year, the rent went up by 5,000 yuan. I used to earn 10,000 yuan a month, but now I can only earn 5,000 yuan, which is not as good as ordinary office workers. I have worked hard for half a year, but recently, because a new subway line has been opened nearby, there are more people going to work, and the house price nearby has also gone up, so the landlord has to raise the rent again. However, this increased traffic did not increase the traffic in his store. There is no way but to close the shop. There are too many examples like this.

High rents have overwhelmed more and more physical stores, coupled with the costs of water, electricity and labor, and the impact of the Internet age. Physical stores are getting harder and harder to do.