Research On The Strategy Of Reforming The Traditional Retail Enterprise D Group Under The New Economic Normal

Financial Distress refers to an economic phenomenon in which an enterprise is unable to repay debts duly or cannot pay its costs.Financial trouble will cause difficulties in the normal operation and future development of the enterprise,and will also have a negative impact on the interests of the stakeholders.With increasingly fierce market competition,cases are increasingly common that companies in financial trouble lead to bankruptcy.China is now in the new economic normal in which structure is toned and growth is steady.Problems like economic downturn,overcapacity,and weak demand bring many enterprises tremendous business pressure.The nation timely put forward new ideas and strategies about the structural reform of supply side.Traditional retail industry,as the forefront of the supply side which directly faces market demand,is the most sensitive industry to the new normal,and also the core battlefield of the reform of supply side.In recent years,foreign brands of retail giants enter the Chinese mainland.With strong financial strength and advanced business strategy,they have brought great impact to the traditional terminal retail industry.On the other hand,Internet business platforms in recent years also develop rapidly.Using IT technology to connect manufacturers and the end consumers,they also greatly depress department stores,which used to be ties of manufactures and consumers.D group,whose main business is traditional department store,used to be a famous local enterprise in City Z.In recent years,due to various reasons,it has been caught in the quagmire of financial difficulties.Based on the theory of financial dilemma and financial difficulties,this paper analyzes and compares the experiences and lessons of the two ST listed companies,and puts forward reasonable solutions to D group's problems.