Yonghui Turns the Tide With Revamp Inspired by Retail Pioneer Pangdonglai

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A Yonghui supermarket.

Taking a leaf out of Pangdonglai’s book, Yonghui Superstores Co. Ltd. has revamped a dozen of its stores, prioritized the quality of goods on offer and improved the pay and conditions of its staff. The result has been a significant increase in performance for the Fuzhou-based supermarket.

At its Xi’an Zhongmao store, daily sales rose from 200,000 yuan ($28,000) to 1.6 million yuan ($225,000) in the first two days after the revamp, while the daily customer flow surged from 3,000 to over 14,000, Yonghui said Monday.

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Yonghui revamped a dozen stores, enhancing product quality and staff conditions, leading to increased performance.
In its Xi’an store, daily sales rose from 200,000 to 1.6 million yuan, and customer flow increased from 3,000 to over 14,000 post-revamp.
The revamp followed Pangdonglai's model, focusing on high-quality products, reasonable pricing, better staff conditions, and streamlined store layouts.

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Who’s Who

Yonghui Superstores Co. Ltd.: Yonghui Superstores Co. Ltd. is a Fuzhou-based supermarket chain that has revamped several stores to improve performance, inspired by Pangdonglai's successful model. Changes include better pay and conditions for staff, enhancing product quality, and optimizing store layouts. This strategy, focusing on profitable locations, has led to the closure of 62 stores and the opening of five new ones in 2023. Despite a challenging year, the revamp significantly enhanced sales and customer flow in certain stores.

Pangdonglai: Pangdonglai is a regional retailer known for exceptional customer service, innovative management, and high-quality products, especially fresh produce. Operating mainly in lower-tier cities in Henan province, it maintains clean stores, offers a wide selection of goods at competitive prices, and provides better pay and working conditions for its employees. It stands as a success story in China's competitive retail market.

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What Happened When

2023：: Yonghui Superstores Co. Ltd. suffered a net loss of 1.3 billion yuan.

First half of 2024：: Yonghui reported revenue of 37.8 billion yuan, a decrease of 10.11% from the previous year, and a net profit of 275 million yuan, down 26.47% year-on-year.

By 2024：: Yonghui has already closed 62 stores and opened five new ones as part of its strategic shift.

September 2, 2024：: Yonghui Superstores Co. Ltd. reported the significant increase in performance for the Xi’an Zhongmao store, stating that daily sales rose from 200,000 yuan to 1.6 million yuan in the first two days after the revamp.

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