Every reporter: Xu Libo Every editor: Liang Xiao
html On March 25, Shanghai Westgate Isetan Department Store Co., Ltd. (hereinafter referred to as Isetan) issued a notice on its official WeChat that due to the expiration of the lease, it will Closing of operations on June 30, 2024.Public information shows that Shanghai Westgate Plaza is located at No. 1038 Nanjing West Road, located in the golden triangle of Shanghai's business district. It once formed the "Meitai Golden Triangle" together with Plaza 66 and CITIC Pacific. Isetan is one of the major merchants in Westgate Plaza and one of the first Japanese department store brands to enter the Shanghai market. It has been accompanying Shanghainese for more than 20 years.
Picture source: Photo by reporter Xu Libo
html On March 26, a reporter from "Daily Economic News" visited Westgate Plaza twice at 10 a.m. and 4 p.m., but not many consumers visited the mall. . An employee of a restaurant told reporters that he was very "embarrassed" when he heard the news that the mall was about to close just one week after joining the job. But from the perspective of a merchant, he also felt that the outcome of the closure was expected, "This mall is still too old and the customer flow is not very good... so our business is not very good at ordinary times. Yesterday we did 800 Yuan, but the monthly rent costs 50,000 yuan." Residents nearexpressed reluctance and emotion. A Shanghai aunt told reporters that she had been a frequent visitor to Westgate Plaza since it first opened. What impressed her most was that in 1998, in order to advocate the rescue of endangered wild animals, the mall held a charity event called "Don't Forget to Save the Tiger in the Year of the Tiger". , once brought a lively tiger to the mall for display. The aunt said that when she was young, she often came to Westgate Plaza to buy clothes and jewelry. This time she heard the news that the mall was about to close, "I think it's a bit of a pity."
Some shops and employees said their future destination is undecided
The 1st to 10th floors of Westgate Plaza are commercial areas, including independently operated brand stores and Isetan. According to the introduction of the official public account, Isetan is a comprehensive department store integrating cosmetics, beauty equipment, home furnishings, and women's groceries.
reporters noticed at the scene that from the perspective of the mall structure, Isetan is located on the inner side of Westgate Plaza, and the shops arranged around the atrium are mostly independently operated brand stores. Judging from the floor guide, Isetan occupies part of the space from the b1 floor to the 7f floor.
It should be pointed out that the main body of the "cessation of business statement" is Shanghai Westgate Isetan Department Store Co., Ltd., and Westgate Plaza has not yet announced whether it will also cease operations. So, have these brand stores that are not affiliated with Isetan also received notices of closure? The reporter randomly visited several stores and received inconsistent feedback.
Picture source: Photo by reporter Xu Libo
A staff member of a sports and fitness store told reporters that the mall is divided into Isetan and Westgate. It is still uncertain whether the entire mall will be closed. "Anyway, our store hasn't received the notice yet, and we will go to confirm (with the mall) today." However, a staff member of another script-killing store told reporters that they have been notified that the mall will be closed in June or July. is closed, so stores are also preparing to gradually withdraw.
Subsequently, the reporter also asked the mall staff located on the ground floor of the hall about this matter. The other party confirmed to reporters that Isetan inside and Westgate outside are both closed. The inside (Isetan) has been operating until the end of June and will be closed, and the outside (Western Town) has not yet notified (when it will close).
Regarding the closure of business, reporters also went to Isetan's office area to convey their requests for interviews, but a staff member declined the interview on the grounds that "the leader has explained that the previous notice is our external response." According to Wenhui Po, relevant departments in Jing'an District revealed that this is a business adjustment and update, and detailed information is yet to be released.
Under the dual impact of shopping malls and e-commerce, Isetan, one of the first batch of Japanese department store brands to enter the Chinese market, has experienced a process of "successful retreat" in the country.As early as 2008, the first mainland store, Shanghai Huating Isetan Department Store, closed down; in 2013, Shenyang Isetan Department Store also ceased operations. In 2022, both Isetan stores in Chengdu will also close. At the end of last year, Tianjin Isetan issued an announcement that the Isetan Nanjing Road store will cease operations on April 14, 2024, and the Binhai Isetan store will cease operations on March 11. Coupled with the closure of Isetan in Meilong Town, Shanghai, today, only Tianjin Yanlord Isetan remains in mainland China.
After Isetan ceases operations, where will the employees go? During the visit, the reporter noticed that many Isetan employees were chatting about their future livelihood issues and "whether they would lose their jobs." Another employee told the reporter that she had not received any notice from the company about the closure of operations. It was only when I saw the news yesterday that I learned that the mall where I work is about to close. An employee also said that although the official notice of closure was only issued yesterday (March 25), there have been rumors of imminent closure one after another. She is optimistic about the future and believes that "the closure of shopping malls is normal in the current environment. "phenomenon", I believe that the company will solve its work problems reasonably and legally.
The shopping mall will be upgraded
According to the official website of Shanghai Jing'an District Government, in 1997, Hong Kong Hutchison Whampoa Real Estate Co., Ltd., Cheung Kong Holdings (Group) Co., Ltd. and Shanghai Meilong Town (Group) Co., Ltd. jointly founded Shanghai's first A shopping mall with international standards and business philosophy—Shanghai Westgate Plaza Co., Ltd.
The National Enterprise Credit Information Publicity System shows that the shareholders of Shanghai Westgate Plaza Co., Ltd. are Shanghai Westgate (Group) Co., Ltd. and Changhu Enterprise (Hong Kong) Co., Ltd.
According to the WeChat public account of Youth Shanghai, a person familiar with the matter in Jing’an District revealed that in the future, the site where Isetan in Westgate Town will undergo an overall transformation. Previously, it was operated by the Westgate Group. After the operation period, the upgrading and renovation work of the entire building will be mainly handled by state-owned assets. In addition, the relevant person in charge of Jiubai Group, which will take over its property rights, also said that it turns out that Westgate Group and Hong Kong's Hutchison Whampoa have jointly established a company called Westgate Plaza Co., Ltd., and the cooperation period will end in August 2024. Expect. "Personally, I think this is information released normally by two operating entities within the scope of the contract period and within the scope of the law. There is no need to attract too much attention. Simply put, the company's cooperation expires and the property rights return to state-owned assets."
Despite the lease, Expiration is indeed an objective reason for the closure of shopping malls, but the underlying reason behind it may be that the traditional business model cannot keep up with the development trend of the times. During the visit of the reporter of "Daily Economic News", many consumers and employees working in the shopping mall mentioned such impressions as "old facilities", "poor service", "low floors and depressing".
Daily Economic News
