Yonghui Supermarket, once China's supermarket chain giant, has been in trouble in recent years. Due to the impact of e-commerce, intensified competition and other factors, Yonghui Supermarket's performance continued to decline, and the stock price also soared. In order to alleviate the financial pressure, Yonghui Supermarket had to start selling assets in an attempt to survive the winter.
1. The rise and dilemma of Yonghui Supermarket.
Founded in 2001, Yonghui Supermarket has quickly occupied the market share of China's supermarket chains through rapid expansion and refined management, with fresh products as its main feature. However, with the rise of e-commerce and the continuous change of consumer demand, the traditional advantages of Yonghui Supermarket have gradually disappeared, and its performance has also begun to decline.
Under the impact of e-commerce, the traditional retail industry is not having a good time. Consumers are increasingly inclined to shop, especially younger consumers. However, Yonghui Supermarket has a relatively late layout in the e-commerce field and has not formed a strong competitiveness, resulting in its market share being continuously eroded.
In addition to the impact of e-commerce, Yonghui Supermarket is also facing fierce competition. With the increase in supermarket chains, the competition in the market is becoming more and more fierce. In particular, the competition with international retail giants has put Yonghui Supermarket under pressure. In such an environment, Yonghui Supermarket's performance has been declining and its financial situation has deteriorated.
2. Yonghui Supermarket's fire sale asset strategy.
In order to alleviate the financial pressure, Yonghui Supermarket began to adopt a strategy of selling assets. On the one hand, it obtains cash income through some assets and improves its financial situationOn the other hand, by adjusting the business structure, we will focus on the core business and improve profitability.
Specifically, Yonghui Supermarket has taken the following measures:
1.*Non-core assets: Yonghui Supermarket will carry out some non-core assets such as loss-making subsidiaries, stores and properties**, and withdraw funds to alleviate financial pressure and replenish liquidity. The ** of these non-core assets not only reduces the debt ratio of Yonghui Supermarket, but also provides it with a certain amount of cash flow.
2.Focus on core business: While selling assets, Yonghui Supermarket is also adjusting its business structure to focus on core businesses such as fresh food. Improve the profitability of the core business by optimizing the ** chain, improving the quality of goods, and improving the store environment. At the same time, Yonghui Supermarket has also strengthened the expansion of its online business to adapt to the changes in consumer demand.
3.Win-win cooperation: In order to enhance its own competitiveness, Yonghui Supermarket also actively seeks cooperation with other enterprises. Through cooperation with e-commerce platforms and logistics companies, we can share resources, complement each other's advantages, and improve our competitiveness.
3. The future outlook of Yonghui SupermarketAlthough Yonghui Supermarket is facing many challenges, its advantages in the field of fresh products still exist. With the increasing demand for fresh products, Yonghui Supermarket still has a lot of room for development. In the future, Yonghui Supermarket needs to continue to innovate and improve, and strengthen the integrated development of online and offline. At the same time, it is also necessary to strengthen the management of the first chain, improve the quality of goods, improve the store environment, etc., and improve the shopping experience of consumers. Only in this way can Yonghui Supermarket be invincible in the fierce market competition.