Research On The Effect Of REITs In The Asset-light Transformation Of Retail Industry

Retail industry is an important part of the commodity circulation chain.With the development of China's economy,the scale of the retail industry has been expanding and gradually becomes an important part of China's industry.In recent years,with the impact of e-commerce and "new retail",the business model of traditional retail enterprises to expand offline stores has brought the development of enterprises into a bottleneck period.The growth rate of performance has slowed down obviously,and even brought operational and financial risks.Online retail,on the other hand,rapid development,make consumers never leave home can buy goods all over the world and this leads to originally by extension line chain stores gained market share of traditional retail enterprise,precipitation stores a large amount of property assets,makes the enterprise assets of partial "heavy",illiquid and hard to repatriate funds.Excessive "heavy" store assets have a certain impact on the financial stability of the enterprise,which increases the operational risk of the enterprise and greatly limits the long-term development of the enterprise.The progress of information technology and the emergence of new consumption patterns have brought innovation and opportunities to the development of the retail industry.As a result,more and more retail enterprises are transforming to the "asset-light operation mode" and helping enterprises to reduce the "heavy weight" and revitalize the precipitation store assets so as to obtain a large amount of cash.In addition,we will expand online sales channels and open up the development mode of online + offline integration.In this context,the innovative financing tools of real estate trust and investment fund(hereinafter referred to as REITs)are also used in the traditional retail industry.The retail industry used REITs to deal with the precipitated property assets and obtained a large amount of funds,which effectively solved the problem that the enterprise assets were too "heavy",thus alleviating the cash flow pressure of enterprises in the cold winter of the industry and reducing the operational and financial risks of enterprises.This paper,based on the perspective of financial performance,and through the Suning case analysis of the operation of the REITs REITs could be used for capital operation retail enterprises is discussed in this paper,achieve the purpose of transforming into the light asset operation mode,and REITs can play a positive role in enterprise asset light transformation,and get the general conclusion,for the retail enterprises in our country the purpose of using the transform the light assets of REITs have important significance.In this case,relevant financial performance was evaluated from the perspective of financial index evaluation and EVA performance evaluation.Combined with the financial data of suning tesco from 2012 to 2017,it is found that after the implementation of REITs,Suning has enhanced its solvency and reduced its leverage.Indirectly improve the profitability of the enterprise;Directly and effectively improve the operating capacity of the conclusion.In terms of capital structure,after the implementation of REITs,the financial indicators of Suning show the characteristics of asset-light operation mode,and REITs have a significant positive effect on the improvement of cash flow of enterprises.Then,on the basis of introducing the capital operation plan of Suning's REITs,and combining with the financial data of Suning from 2012 to 2017,the accounting adjustment of its financial statements is carried out to calculate the net after-tax operating profit(NOPAT),capital input(IC),weighted average capital cost(WACC)and economic added value(EVA)of Suning over the years.After the operation of Suning 's REITs,it tends to be asset-light operation mode,and the performance of the enterprise has been improved to a certain extent.Finally,the case is summarized,and Suning's transformation from capital operation with REITs to asset-light operation mode is taken as a model,and some Suggestions are put forward for the retail industry to help enterprises with REITs operation to realize asset-light operation mode and perfect asset-light operation system.