Kunpeng Project China's retail giant, Yonghui Supermarket, was once the king of supermarkets in the hearts of countless people. However, now it is facing a loss of 3.9 billion yuan and the dilemma of closing 400 stores. Why would such a former giant be in trouble?
In December 1995, Yonghui Supermarket was born in Fuzhou, Fujian Province, and was just an inconspicuous small supermarket at first. However, over time, Yonghui Supermarket gradually expanded to become a well-known local brand in Fujian and began to expand across the country.
At the beginning of the 21st century, supermarket chains became mainstream as agribusiness was restructured into supermarkets. Yonghui's founder, Zhang Xuansong, was keenly aware of this change and took the lead in transforming Yonghui into a supermarket. In the fierce competition, Yonghui stands out for its focus and innovation in fresh retail.
Other competitors may be discouraged in the fresh food sector, but for Zhang, this is a business opportunity. He went deep into the agricultural product base and worked with them to ensure that Yonghui's fresh produce was fresh**. This move won the trust of consumers and established Yonghui's market position.
Subsequently, Yonghui began to expand rapidly. From 2002 to 2007, Yonghui increased the number of stores every year, becoming the leader of supermarkets in the country. In 2013, Yonghui was successfully listed, and its market value soared, becoming one of the world's top 500 companies.
However, since 2018, Yonghui has been in trouble. Store closures, evaporation of market value, and increasing losses ......There are signs that Yonghui is experiencing unprecedented challenges.
There are many reasons why Yonghui is in trouble. Fierce competition in the market is one of its top challenges. In addition to the competition of traditional supermarkets, the rise of emerging e-commerce and the rise of the community ** model have also intensified market competition. In addition, the reduction in consumption during the epidemic also had a negative impact on Yonghui's operations.
Xiao Nan believes that although it is facing many difficulties, as long as it finds the right direction of development, Yonghui still has a chance to turn around. Let's wait and see how they rise to the challenge and get back to the top. So do you think Yonghui Supermarket can still turn around? Feel free to leave your views in the comment section.