Rainbow Department Store Net Profit Down 12.52% In 2014

Shenzhen-headquartered Rainbow Department Store published its annual performance report for 2014, stating that the company realized total operating revenue of CNY16.998 billion in 2014, a year-on-year increase of 6.02%; its total profit was CNY773 million, a year-on-year decrease of 11.84%; and its net profit attributable to shareholders was CNY538 million, a year-on-year decrease of 12.52%.

In 2014, Rainbow Department Store opened six new Rainbow-branded outlets and one Dreams-on outlet, and upgraded one Dreams-on outlet. Meanwhile, the company opened five new Weiwo convenience stores and acquired 153 Q-mart convenience stores.

Rainbow Department Store closed Yong'an store and Xiaoshan store in 2014. It is said that on May 31, 2014, the company terminated franchising partnership with Yong'an Rainbow store; and on October 13, 2014, it terminated the operation of Xiaoshan Rainbow store. Moreover, the company terminated the operation of Zhejiang Huzhou Rainbow store on February 16, 2015.

By the end of the reporting period, Rainbow Department Store had entered Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan. The company had 62 Rainbow-branded owned stores and one franchised store, with total operating areas of over 1.8 million square meters. At the same time, it had four Dreams-on owned stores, with total operating areas of about 150,000 square meters; five Weiwo convenience stores; and 153 Q-mart convenience stores.

Rainbow Department Store said that in 2015, the company will promote business transformation and structure model reforms. The company will focus on O2O mobile e-commerce development, full channel supply chain capacity improvement, and flat and network-based organization model reform.