Research On The Management Strategy Of Nanjing Xinbai Center Store

As one of the oldest retail types, the department store has experienced a development of more than one hundred years. The main features that distinct it from other retail establishments include luxury interior decoration, large-scale operation, premium or convenient location, ability to attract substantive and wide-ranging customers, availability of vast goods in multiple product categories. In terms of management, department stores in China usually adopt the "Separation of Merchandise and Selling" system. In addition, individual departments independently take responsibility of planning implementation, selling, merchandise management and accounting of the various categories of goods.With the continuous improvement of living standard, persistent changes of consumer preference, and flourishing development of other retail types, the once dominant department store has been facing increasingly challenges from other retail establishments such as commercial real estate, supermarkets and specialty stores. Meanwhile, the interior issues of merchandise homogeneity, severe lag on management and information system, etc., lead to skyrocketing costs and plummeting profits. Altogether, department stores have been bearing increasing competition pressures.To overcome the current and potential crises, and acquire stable and sustainable development, department stores are currently attempting to change its competition basis from high costs, compulsive promotions, and encroachment on vendors’margin to management improvement, company image enhancement, and store brand establishment.Based on the analysis of business environment and strategies of Xinjiekou Department Store, this thesis demonstrates how to improve single store competitiveness of first or second tier city department stores through establishing the modern management philosophy, concentrating on brand selection, improving merchandise variety, and paying attention to specific challenges. Some main conclusions include:to improve competitiveness, department stores must start with the requirements of the internal development, advance the management system and mode, take the market orientation, focus on satisfying customer needs, improve merchandise quality and company image, and enhance the ability of brand selection. It is also critical for department stores to strength the cross-boundary cooperation with commercial real estate. Department stores should take advantage of the current commercial real estate explosion and explore the possibility of chain operation based on standardization and informatization development. These suggestions help department stores in China avoid false prosperity and obtain sustainable growth.