Peak has closed more than 1,000 channels in the first three quarters to “winter”

Peak's stores have decreased again.

According to a report released by Peak Sports yesterday, as of September 30, 2012, there were 6,739 authorized retail outlets in China, a net decrease of 1067 compared with the end of 2011.

At the same time, the Group's ordering situation has not improved. According to the announcement, the total order booked by the Group in the second quarter of 2013 (calculated at the wholesale price) fell sharply compared with the same quarter of 2012, which was between 20% and 30%. Among them, the amount of footwear orders decreased, and the amount of apparel orders fell sharply, while the average wholesale price of products increased to zero.

Since the beginning of this year, the number of Peak retail outlets has dropped significantly. According to the report of the recent China Business Operations announced by Peak in May, as of March 31 this year, the group had 7,523 retail outlets, a decrease of 283 from the end of 2011. As of June 30 this year, the Group had 7,059 retail outlets, a decrease of 464 from three months ago. From the 30th of June to the 30th of September, Peak retail outlets closed another 320.

According to Peak’s statement, the Group is implementing a retail outlet optimization plan. In the May report, Peak expects to have 7,000 retail outlets by the end of 2012, but by August, Peak has lowered the figure to 6,500.

"The overall trend of Peak is still down, including the number of stores closed." Ma Gang, a clothing analyst, told the "First Financial Daily".

In fact, in the “winter” of the apparel industry, companies have slowed their pace of expansion. However, compared with Anta, Xtep and 361 degrees, Peak's stores are undoubtedly the most closed. According to the announcement, the mid-year reports of the top three companies all show that as of the end of the first half of 2012, compared with the end of 2011, the total number of stores of ANTA Sports decreased by 110 to 9,187, and Xtep branded retail stores increased by 7 to 7,603, and 361 The net increase was 185 to 7,865.

Peak explained in its 2012 mid-year report that compared to the first half of 2011, the average turnover and retail sales per unit of retail outlets in each of Peak's authorized retail outlets in China decreased in the same period in 2012. 30% and 34.3%, this drop is consistent with the reduction in turnover in the Chinese market. The decrease in turnover was attributable to the reduction in demand for sporting goods as a result of inventory adjustments and weak economic conditions throughout the industry in the first half of 2012.

In this regard, senior industry analysts believe that Peak's knowledge in the channel is not very solid. "Peak's channel management capability is not strong, so franchisees escape faster. All Fujian (sports) brands, only the largest number of stores it shut, this point could have been a problem, compared to other companies, Peak There is a lack of means and methods to retain franchisees."

The person also said that the entire industry has problems, that is, the size of the inventory. It may be that Peak’s inventory is relatively large and the franchisee’s profitability is weak, so they leave. Peak's mid-year report shows that in the first half of 2012, the group's gross profit margin was 37.7%. While Xtep's gross margin was 40.9%, the gross profit margin of 361 degrees was 42.7%, and that of Anta was 41.8%.

Ma Gang believes that the downward trend of the apparel industry will not change much in the short term. “The adjustment of the industry will take some time. As to when it is not particularly good to judge, because there are several levels of things, such as inventory, whether the inventory is healthy is an important indicator. And whether the entire Chinese economic trend will improve, this is also an impact. An important factor in the industry," said Magang.