Li Ning's Poorly Managed Core Store Closed
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Despite the obvious recovery trend of the sporting goods industry, some sports brands have fallen into crisis again before they can meet their hopes. At the end of March this year, the annual report issued by Li Ning Company showed that Li Ning has been losing money for three consecutive years, and the amount of losses last year expanded to 781 million yuan. Recently, some members of the public have discovered that the Li Ning store on Quancheng Road, which is located in Jinan’s core business district, has closed. It can be seen that Li Ning really caught the economic crisis.
The pedestrian street on Quancheng Road is crowded with people. Although the branding with Li Ning logo is still hanging, the Li Ning Store has closed its doors and there are no announcements and suspension notices outside the store. Near this store, nearly 10 sports brand stores including Anta, 361, Hongxing Erke and Xtep continue to operate.
The store has been closed for nearly a month. It is probably not a good business. The staff of a sports brand shop near Quancheng Road said that this Li Ning store has been closed for a long time.
Except for the Quancheng Road shop, the Li Ning store on the first floor of Block A of Shangang Road Cyberport Building was also closed down. There are banners of rental shops and rental contacts on the gates. According to insiders, this Li Ning store closed as early as a year ago. It has been in an empty shop for rent.
In a variety of sports brands, Lishan Outlets Shopping Plaza, the staff of the service desk said that Li Ning has been withdrawn for almost a year. However, there is no sign of Li Ning's store on Shanshi East Road where young consumers gather.
Li Ning was one of the representative brands of domestic sportswear, and its price was once comparable to international brands such as Nike and Adidas. However, in recent years, with the rise of online shopping, Li Ning and other large numbers of domestic sports apparel brand physical store sales have been hit. Sports brand stores are often discounted, and many people try it out and buy it online. College student Xiao Li said.
Li Ning's defeat of Jinan's core business district is not a phenomenon of individual cities. According to Li Ning’s 2014 financial report, Li Ning’s 2014 loss was RMB 781 million. As of December 31, 2014, the number of regular stores, flagship stores, factory stores, and discount stores of Li Ning was 5,626, a net decrease of 289 from December 31, 2013. There are 51 dealers, which is a decrease of 4 from December 31, 2013. The company's inventory as of December 31, 2014 was as high as 1.289 billion yuan, an increase of nearly 40% from the 942 million yuan at the end of 2013.
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