Chapter 1516 0 Trouble in Sales (Nine/Ten)

"Brother Feng, the period of rapid expansion of our supermarkets has passed. Now we are mainly expanding in cities below the third tier. The expenditure has dropped a lot, and our cash will soon have a large balance." Fu Guangwei said with a smile on his face.

After investing for so long, I can finally see dividends.

Although there have been dividends before, but they are very small. Because the expansion pace of Taihua Supermarket is too fast and too fierce, and the supermarket is not a leased space, it is purchased or built by itself, and the cost is much higher.

From a long-term point of view, buying or building your own is very cost-effective, but it puts a lot of pressure on the supermarket's funds.

Fortunately, they can borrow enough money from the bank. Even if there is no Taihua Supermarket Group, they can borrow a lot of money in their name.

So after so many years of operation, Taihua Supermarket has always been a high-debt model, but no bank will worry that they will not pay the loan.

Not to mention that a company as big as Taihua Supermarket is here, but of those shareholders, which one is not a rich man, and who will default on his debts? Even any of them can pay off the loan.

After so many years of rapid expansion, Taihua Supermarket Group has finally occupied all first- and second-tier cities, and most of the third-tier cities, but cities below the fourth-tier are occupied by many local supermarket groups.

They now have two options, one is to drive near them, with a strong brand, and a better price, to squeeze each other out. This method hurts the enemy by a thousand and self-destructs by 800, which will also reduce one's own profits. And after crowding out the other party, if you increase the price, you will also lose some consumers.

The second simple way is to merge those small supermarket groups and then expand on their original sites. The places where the small supermarkets choose are also in good locations.

It is even possible to keep the brands of those small supermarkets and operate together with multiple brands.

Also note that you cannot be accused of monopoly. It doesn't matter if you have a monopoly in fact, but if you take advantage of your monopoly to squeeze out your competitors, the fine will not be light.

Therefore, Taihua Supermarket plans to use the third method, which is to open at least one large supermarket in those third- and fourth-tier cities, not necessarily a hypermarket.

With the brand advantage, slowly attract customers, do not do excessive promotions, etc.

Just relying on the membership card and shopping card of Taihua Supermarket can be used nationwide, which can make other supermarkets unmatched.

Many people work hard in big cities, but their parents still live in small cities. The company issues a shopping card, and you can take it back to your parents.

And the bigger the brand, the higher the credibility, and others will think your products are better and fresher. This is indeed the case. The fresh food of Taihua Supermarket has always been the industry standard.

Having its own picking garden, transporting it by itself, and delivering multiple times a day, it can not only provide customers with fresher products, but also reduce the loss rate.

The development of Taihua Supermarket is getting better and better, but problems have come, but they are sweet troubles.

"Brother Feng, we have so much cash in our balance. Do you want to share dividends, or do you do something in partnership?"

Dividends are very good. After investing for so long, I can finally see a big profit. Take the money and invest in something else.

Well, Fu Guangwei has long been interested in a luxury yacht, and this time he has the money to buy it.

"It's okay to share dividends, and it's okay to do something in partnership. Have you asked other people's opinions?" Feng Yu turned to look at Fu Guangzheng. It seemed that the two brothers had discussed this matter.

Fu Guangzheng nodded: "I discussed it with the Li brothers, and they also want to ask you what you mean first."

"If I say no, what are your plans?" Feng Yu asked rhetorically.

"Our cash share will exceed 30% this year, which is too high. My idea is to distribute dividends, and in the future, dividends will be distributed quarterly, and then everyone will take the money and invest in other things, such as investing in stocks. Not bad." Fu Guangzheng said.

Now that he has the help of his father-in-law, he has caught up with the recovery of the financial industry, and the stock market has entered a bull market. Of course, he wants to take the opportunity to make more money.

But the Li brothers don't think so.

They themselves have less financial investment, and their family loves industry. Now they don't need capital, and they are also more distressed about how and what to invest in the dividend money.

If you invest in the real estate that their family is best at, the funds seem to be a little less, and the mainland is recently regulating the real estate market, and many people say that real estate is cold.

So the Li brothers wanted to see what Feng Yu was going to invest in, and they wondered if they could get a share. They also have rich network resources, and they are willing to hand over power to the people designated by Feng Yu. Anyway, Feng Yu has never cheated them once in these years.

"Let's pay dividends. It's good for everyone to invest in the stock market or something else. But I have one request. In one year, I want our Taihua supermarket to continue to expand rapidly."

Fu Guang is frowning: "Why? It's not worth it at all, and it will increase our expenses a lot."

"At this time, this kind of financial model of our Taihua Supermarket will soon be restricted. I heard rumors above that we are discussing that the payment period for retailers should not exceed 60 days, because there are too many lawsuits in the past two years. It's over." Feng Yu was also a little helpless, but fortunately, the rapid expansion period of Taihua Supermarket is almost over, and there is no delay.

Fu Guangwei found that his work was even more difficult to do. Before, they used to settle quarterly, or even half a year, so that they had sufficient floating cash on their books.

Many of their new stores opened with this money as a working capital investment.

And if this is limited to 60 days, then their floating cash will be much lower. Fortunately, they don't need to expand so crazy anymore. It is much cheaper to invest in a supermarket in third- and fourth-tier cities.

"By the way, it seems that there are still some restrictions, that is, no entry fee can be charged to suppliers, and no fees can be charged for any reason such as festivals, store celebrations, and new store openings." Feng Yu thought for a while and said.

This time, Fu Guangwei is about to turn into a bitter melon face. How come things have changed not long after he took the position?

If after he took office, the expansion rate of the supermarket slowed down, and the profit growth and turnover growth declined seriously, and he would not be ashamed as the chairman to continue.

Feng Yu never thought that the above would make such a restriction. Fortunately, Lao Zhang informed him in advance and told him to pay attention and not to be named.

In fact, this regulation is basically aimed at major retailers such as Taihua Supermarket Group. It is obviously a proposal made by representatives of suppliers during a meeting, and the above also believes that it is feasible.

The damage here is second only to the Taihua supermarket, I am afraid it is Inter and Su screwed.

"Make a change early. This is the last time we can float more cash. Within half a year, we must control the settlement period within two months. If it is not possible, we will pay dividends slowly."

...(To be continued.)

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