Chapter 1516: Trouble in the retail industry (9/10)

"Feng Ge, the rapid expansion period of our supermarket has passed, and now it is mainly expanding in cities below the third line. The expenditure has dropped a lot, and our cash will soon have a large balance." Fu Guangwei said with a smile.
After investing for such a long time, I can finally see dividends.
Although there were dividends before, they were very few. Because the expansion of Taihua Supermarket is too fast and too fierce, and the supermarket is not a rental site, it is purchased or built by itself, and the cost is much higher.
From a long-term perspective, buying or self-construction is cost-effective, but it puts tremendous pressure on supermarket funds.
Fortunately, they can borrow enough money from the bank, even if there is no Taihua Supermarket Group, they can lend a large sum of money in their name.
So for many years, Taihua Supermarket has always been a high-debt model, but no bank will worry that they will not be able to lend.
Not to mention such a big company in Taihua Supermarket is here, let's say those shareholders, which one is not a big rich, who will pay the bill? Even any of them can pay off the loan.
After so many years of rapid expansion, Taihua Supermarket Group has finally occupied all the first and second tier cities, and the third-tier cities have also occupied the vast majority, but the cities below the four-tier are occupied by many local supermarket groups.
They now have two options, one is to open near them, with a strong brand, and more favorable prices, squeeze each other. This method hurts one thousand, and damages eight hundred, which will also reduce your own profits. And after squeezing the other party, if you increase the price, you will lose some consumers.
The second simple method is to merge those small supermarket groups and then expand them on their original site. The places that small supermarkets choose are also good.
You can even keep the brands of small supermarkets and multi-brand joint ventures.
Also note that you cannot be accused of monopoly. The factual monopoly doesn't matter, but using the monopoly position to crowd out the competitors, the ticket will not be lighter.
Therefore, Taihua Supermarket plans to adopt the third method, that is, in those third- and fourth-tier cities, at least one large supermarket will be opened, not necessarily a hypermarket.
With the advantage of the brand, slowly attract customers, do not make excessive promotions.
Just relying on the membership card and shopping card of Taihua Supermarket can be used nationwide, which will make other supermarkets far behind.
Many people work hard in big cities, but parents still live in small cities. The company sends a shopping card and can take it back to parents.
And the bigger the brand, the higher the credibility, others will think that your goods are better and fresher. This is also true. The freshness of Taihua Supermarket has always been the industry standard.
With its own picking garden, its own transportation, and multiple delivery every day, not only can provide customers with more fresh products, but also reduce the loss rate.
The development of Taihua Supermarket is getting better and better, but the problem is coming, but it is a sweet trouble.
"Feng Ge, we have so much cash in the balance, everyone is a dividend, or what do the partnership do?"
The dividend is very good. After investing for such a long time, I finally can really see a big profit. With money, you can invest in something else.
Well, Fu Guangwei has long seen a luxury yacht, and this time he has money to buy.
"Dividends are also OK, and the partnership can do something else. Have you asked other people's opinions?" Feng Yu turned to look at Fu Guangzheng. It seems that this matter has been discussed by their brothers.
Fu Guangzheng nodded: "I have discussed with the Li brothers, they also want to ask you first."
"If I say no opinion, then how do you plan?" Feng Yu asked.
"Our cash share can exceed 30% this year. This is too high. My idea is to pay dividends. After that, I will pay dividends on a quarterly basis. Then everyone will take the money and invest in other things, such as investing in stocks. It’s not bad.
Fu Guangzheng said.
Now that he has the help of his father-in-law, he has caught up with the financial industry and the stock market has entered a bull market. Of course he is thinking about taking the opportunity to make more money.
However, the Li brothers do not think so, they have less financial investment, and their family loves industry. Now they don't need money. The dividend money is taken out. How to invest and invest in it, they are also distressed.
If you invest in the real estate that they are best at, the funds seem to be less, and recently the mainland is regulating the real estate market. Many people say that real estate is cold.
Therefore, the Li brothers want to see what Feng Yu intends to invest, and they think about whether they can participate in one share. They also have a wealth of network resources, and they are willing to hand over power to the people designated by Feng Yu. Anyway, Feng Yu did not hang them once in these years.
"Dividends, everyone is going to invest in the stock market or anything else is fine. But I have a request, one year, I want our Taihua supermarket to continue to expand rapidly."
Fu Guang is frowning: "Why? This is not cost-effective, it will increase our spending a lot."
"Our Taihua Supermarket will be restricted in this kind of financial model at this time. I have heard the wind and the discussion is that the retailer's payment period cannot exceed 60 days, because there are too many lawsuits in the past two years. "Feng Yu is also somewhat helpless. Fortunately, the rapid expansion period of Taihua Supermarket has been almost the same, no delay.
Fu Guangwei found that his work was even worse. Before that, it was a quarterly settlement, and even a half-year settlement, so that they had sufficient floating cash on their books.
Many of their new stores are open, which is the use of this money to make a turnover investment.
And if this limit is sixty days, then their floating cash will be much lower, but fortunately they do not need to expand so crazy, third- and fourth-tier cities invest in a supermarket, much cheaper.
"Yes, it seems that there are still some restrictions, that is, the entrance fee must not be charged to the supplier, and the fees cannot be charged for any reason such as festivals, celebrations, new stores, etc." Feng Yu thought about it.
This time, Guangwei is almost turned into a bitter face. How did he get on the list for a long time, and things have changed?
If he is in the upper position, the expansion of the supermarket is slow, and the profit growth and turnover growth are all declining. His chairman has no face to do it anymore.
Feng Yu did not expect that the above limit would be made. Fortunately, Lao Zhang informed him in advance, let him pay attention, don't be named.
In fact, this regulation is basically aimed at large retailers such as Taihua Supermarket Group. It is obviously the proposal made by the representatives of the suppliers at the meeting. It is also considered feasible.
This damage is second only to Taihua Supermarket, I am afraid that Inter and Su are twisted.
"Early change, this is the last time we can save more cash. In half a year, the settlement period must be controlled within two months. It is not good, the dividend will be slow."
... (to be continued.)