In 2010, Yonghui Supermarket became the "No. 1 fresh stock" with a market value of 38 billion yuan, and achieved a revenue of more than 30 billion yuan in 2013. After JD.com and Tencent became shareholders, Yonghui Supermarket became the first supermarket in China with a market value of more than 100 billion yuan in 2018, and quickly became a supermarket "giant". However, the loss in 2021 triggered a plan to close stores for three consecutive years, with a loss of 8 billion yuan and a market value of nearly 70 billion yuan. Yonghui Supermarket has tried to transform, but failed to reverse the decline, who is behind this once "giant"?
Since Yonghui Supermarket went public in 2010, it has fallen into a downward trend, with continuous losses and the implementation of store closure plans that have caused investors to leave the market. In August 2022, Yonghui has closed nearly 400 stores. Consumers have complained that the quality of their fresh products is not fresh, and the service attitude of the store staff is worrying. However, in the eyes of most people, Yonghui Supermarket's previous brilliant achievements are undeniable, and the company, which was once the "first brother of China's supermarket", is now in deep trouble.
Yonghui Supermarket, established in 2001, has risen in Fujian Province with the model of "agricultural reform and super-supervision" and has become a local leader. Its core positioning is a fresh supermarket, and after winning the regional market, it will gradually achieve national expansion. In 2009, it entered the ranks of the national household appliances circulation enterprises in the countryside, and in 2010, it was successfully listed on the Shanghai ** Stock Exchange, and its stock price has been rising, becoming unique in the supermarket industry.
Yonghui Supermarket's fresh characteristics and in-depth cooperation with ** merchants have reduced operating costs. At the same time, it pays attention to logistics construction, further reduces transportation costs, and grasps the pricing power of fresh sales. In the rapid expansion, Yonghui opened 50 stores, achieved a nationwide layout in just three years, and became a dark horse in the market.
With the rise of e-commerce, Yonghui Supermarket has also begun to transform, launching "super species" in the new retail revolution, but the fresh preservation period makes logistics problems many. The internal decision-making is inconsistent and the layout is not accurate enough, which leads to the chaos of the ** chain and the loss of new formats such as mini stores. Under the impact of the epidemic, Yonghui and the community competed fiercely, lost its advantage, and gradually collapsed the fresh barrier.
With the rise of e-commerce and the impact of emerging online shopping models on traditional supermarkets, Yonghui is also doomed. On the road of innovation and transformation, the internal decision-making is not uniform, the layout appears to be slightly chaotic, and the best development strategy cannot be found under the wave of the new era.
In order to improve efficiency, Yonghui began to split the original ** chain, and the blind procurement of regional managers led to the loss of control of the ** chain. The launch of the new business format was also unsuccessful, further exacerbating the loss-making situation until it fell into a "bottomless pit".
Under the impact of the epidemic, the community has developed rapidly, and the fresh barriers built with Yonghui Supermarket have begun to be challenged. After losing its advantage, Yonghui was gradually marginalized by the market, the founders began to cash out, and the company went into decline.
Despite the difficulties, Yonghui did not give up, actively carried out innovation and transformation, and was committed to building a new model in the digital era. However, in order to get out of the predicament, it is necessary to carry out thorough reforms, rebuild the middle platform, and adapt to the changes in the market development pattern. Perhaps one day in the future, Yonghui Supermarket will be able to re-emerge and rejuvenate itself.
Recently, the former supermarket "giant" has fallen into an unprecedented predicament, and looking to the future, it still needs to face huge challenges and changes. For enterprises, only by keeping up with market changes and carrying out innovation and transformation can they be invincible in the fierce competition. I hope that Yonghui Supermarket can find a way to revitalize and usher in a better future.