China's Offline Retailers See Falls in Revenue

　　Based on a recent report by the China General Chamber¹ of Commerce, the sales volume increase rate of the country's top 100 retailers² has slowed down by 10 percent. However, while many offline giant retailers are seeing falls in revenue, online retailers have been enjoying rapid growth.

 

　　Zhang Wan³ takes a closer look.

 

　　The report shows that among the top 100 retailers, 92 offline retailers witnessed an increase of 11 percent in their sales volume in 2012, 9.9 percent lower than during the same period in 2011. The sales increase is even lower than the number under the financial crisis in 2009.

 

　　With sales volume increase rates slowing down, the net profit of these retailers has been decreasing. Media reports the average rate of profit of overseas giant retailers to be roughly 3.4 percent; however, their Chinese peers believe the actual figure to be far lower.

 

　　Here is Li Yanchuan, the vice⁴ president of a chain supermarket company in Beijing.

 

　　"The average net profit within the industry used to be about 1 percent, while the gross profit was 12 to 13 percent. However, our net profit has now dropped to 0.8 percent, which means we can only earn 0.8 yuan out of a 100 yuan sales revenue."

 

　　In contrast to the situation faced by most offline stores, online retailers are seeing their sales booming. All 8 of the country's leading online retailers are among the top 100 retailers across the nation to see their sales volume increase by 30 percent.

 

　　Zhang Zhigang, president of the China General Chamber of Commerce, explains the reason behind this.

 

　　"Offline retailers seeing sharp declines in sales are mainly from the catering⁵ and general merchandise industries. By offering greater convenience and efficiency, as well as lower prices, online retailers have brought about the sharp sales decline of offline retailers."

 

　　Apart from the challenge of competing with e-commerce giants, some experts believe higher cost is another important factor slowing down the growth of offline stores.

 

　　Wang Yao, the head of the China National Commercial Information Center says that in 2012 and the first quarter of 2013, offline retailers have been negatively influenced by three main factors, higher labor⁶ cost, higher rental⁷ cost and competition from online retailers.

 

　　Here is Li Yanchuan, president of the chain supermarket company in Beijing.

 

　　"The rental cost of most of our supermarkets has increased by 50 percent over the past year, and meanwhile, labor costs are also on the rise, at about 11 to 12 percent."

 

　　Industry insiders further believe that the outdated⁸ operation model which many offline stores still use is also a reason behind their decline. Currently, most department stores make profit through leasing their spaces and charging suppliers various management fees. As a result, most department stores look similar without unique identifying features; as such the price war is considered the only way out for them.

 

　　Facing the profit decline, many offline stores have started to take action to make change. Instead of leasing spaces, some stores have turned to making purchases from manufactures directly and selling by themselves.

 

　　For CRI, I am Zhang Wan.

1 chamber   

n.房间，寝室；会议厅；议院；会所

参考例句：

• For many,the dentist's surgery remains a torture chamber.对许多人来说，牙医的治疗室一直是间受刑室。
• The chamber was ablaze with light.会议厅里灯火辉煌。

2 retailers   

零售商，零售店( retailer的名词复数 )

参考例句：

• High street retailers reported a marked increase in sales before Christmas. 商业街的零售商报告说圣诞节前销售量显著提高。
• Retailers have a statutory duty to provide goods suitable for their purpose. 零售商有为他们提供符合要求的货品的法定义务。

3 wan   

(wide area network)广域网

参考例句：

• The shared connection can be an Ethernet,wireless LAN,or wireless WAN connection.提供共享的网络连接可以是以太网、无线局域网或无线广域网。

4 vice   

n.坏事；恶习；[pl.]台钳，老虎钳；adj.副的

参考例句：

• He guarded himself against vice.他避免染上坏习惯。
• They are sunk in the depth of vice.他们堕入了罪恶的深渊。

5 catering   

n. 给养

参考例句：

• Most of our work now involves catering for weddings. 我们现在的工作多半是承办婚宴。
• Who did the catering for your son's wedding? 你儿子的婚宴是由谁承办的？

6 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

7 rental   

n.租赁，出租，出租业

参考例句：

• The yearly rental of her house is 2400 yuan.她这房子年租金是2400元。
• We can organise car rental from Chicago O'Hare Airport.我们可以安排提供从芝加哥奥黑尔机场出发的租车服务。

8 outdated   

adj.旧式的，落伍的，过时的；v.使过时

参考例句：

• That list of addresses is outdated,many have changed.那个通讯录已经没用了，许多地址已经改了。
• Many of us conform to the outdated customs laid down by our forebears.我们许多人都遵循祖先立下的过时习俗。