One million small stores will close in China in 2020, mainly on the eastern coast. Pictured are employees wearing masks at work in a factory in China.
The outbreak of Newcastle pneumonia (a Chinese Communist virus) continues to hit China’s economy. “Half Moon News reported Tuesday (2) that at least 1 million small brick-and-mortar stores closed down last year, with Jiangsu, Guangdong and Shandong provinces in the worst situation. The industry has called on the government to help promote rent reduction, allow the ground stall economy and use big data to lend money to small stores, so as to help them tide over the difficulties of the Epidemic.
According to analyst Cui Fan, the enterprise data search website “Enterprise Cha Cha” data, found that from January to November last year, 3.01 million individual households and other entities have been revoked, even excluding online stores and mobile vendors, the number of small store closures still reached millions of rooms.
The number of closures in the East is more than in the Midwest. Enterprise data show that the cancellation of cancellation of small stores are mainly concentrated in the eastern coastal areas, with significant differences between the east and west. Jiangsu, Guangdong and Shandong provinces are the top three in China in terms of the number of small stores written off in 2020.
Within the city, the number of small store closures in scenic spots and commercial streets is significantly more than in the community. Half-moon reporter visited in the northeast, Sichuan, Tianjin and other places to learn that small stores in scenic areas rely on tourists for income, the past year by the epidemic, the operation is particularly dismal; community small stores mainly to meet the daily needs of residents, the impact of the smallest.
Small stores operating for 2 to 5 years are most likely to close down. Enterprise data show that 69.4% of the small stores suspended and cancelled in 2020 have been operating for less than 5 years.
Industries with less relevance to the basic Life of the people close down more often. From the situation in Tianjin, Changchun, Shenyang, Chengdu, Guangzhou and other cities, more industries such as Education, fitness, bathing, etc. closed down.
Shanghai has a milk tea store owner of the original business is difficult to survive, desperate and illegal in the live platform to open a pornographic live room to pay rent, and was eventually prosecuted. Tianjin has a seafood restaurant owner absconded to avoid debt, has been recharged or purchase membership of the people blocking the restaurant claims, and finally to the relevant departments to complain about seeking solutions.
Some experts suggest that the collapse of small stores will also have a negative impact on the financing of small and medium-sized enterprises. Most of the rent received by the landlord of the small store is now invested in the private lending market, becoming the source of the “pool” of financing for SMEs outside the banks. Wang Jingyi, a special researcher at the Digital Finance Research Center of Peking University, believes that “the closure of a large number of small stores undoubtedly affects the ability of private financing, further narrowing the financing channels for SMEs.”
A number of experts called on local governments to find store lessors and lessees to coordinate and lower rents. A shopping mall in Changchun, Jilin decided to waive 2 months of rent for tenants to reduce the pressure on the operating costs of small stores. In addition, some local governments have adjusted their management tools to allow small stores to set up ground stalls in morning and night markets to improve their income, etc.
China 2020 due to the closure of the cancellation of small stores, 69.4% of the store operating Time of less than 5 years.
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