Caixin Weekly | JD.com and Alibaba Divest Supermarkets: Can Yonghui and RT-Mart Replicate the Myths of Pao Dang Lai? (AI Translation)
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文|财新周刊 孙嫣然 包云红
By Caixin Weekly Sun Yanran, Bao Yunhong
文|财新周刊 孙嫣然 包云红
By Sun Yanran and Bao Yunhong, Caixin Weekly
曾经备受电商平台追捧的线下零售资产——大型连锁超市,正在被战略性放弃。中国互联网巨头在经历十年狂飙突进投资并购后,转向整理资产剥离出售,收缩回归主营业务。
Once highly sought after by e-commerce platforms, offline retail assets—large chain supermarkets—are now being strategically abandoned. After a decade of aggressive investment and acquisition, Chinese internet giants are shifting towards asset divestment, pulling back to focus on their core businesses.
9月23日,家居潮玩连锁企业名创优品(NYSE:MNSO/09896.HK)突发公告收购第一大商超永辉超市(601933.SH)两大股东香港牛奶公司和京东(NASDAQ:JD/09618.HK)各自持有的21.1%、8.3%的股权,一跃成为第一大股东,交易对价62.70亿元。
On September 23, home decor and trendy toy retail chain Miniso (NYSE: MNSO/09896.HK) made a surprising announcement that it would acquire the stakes of the two largest shareholders in Yonghui Superstores (601933.SH)—Hong Kong Dairy Co. and JD.com (NASDAQ: JD/09618.HK)—which hold 21.1% and 8.3%, respectively. This acquisition makes Miniso the largest shareholder with a transaction price of 6.27 billion yuan.

- DIGEST HUB
- Chinese internet giants, including Alibaba and JD.com, are divesting from offline retail supermarket assets and refocusing on core businesses as hypermarket models become unsustainable.
- Miniso has acquired major stakes in Yonghui Superstores, making it the largest shareholder for 6.27 billion yuan—the largest acquisition in the sector—which reflects a strategic shift in China's retail landscape.
- Traditional supermarkets like RT-Mart and Yonghui are facing closures and challenges but are exploring new retail models, such as membership clubs and smaller formats, and adopting practices from successful international chains like Costco.
[para. 1]
- MINISO
- MINISO, founded in Guangzhou in 2013, is a popular lifestyle and variety store chain. It is seen as a beneficiary of post-pandemic consumption trends, with strong overseas market growth. In 2023, MINISO reported a 25% revenue increase and a 16.4% rise in net profit. The company recently announced plans to expand rapidly, aiming to double its global store count to over 12,000 by 2028, with approximately 5,000 stores abroad.
- Yonghui Superstores
- Yonghui Superstores is undergoing a restructuring as Miniso acquires significant stakes, making it the largest shareholder. The company previously struggled as partnerships, including with JD.com, failed to deliver successful transformation. To adapt, Yonghui collaborates with Henan-based premium supermarket Fangdonglai to revamp stores. This move aims at revitalizing the business amid challenging retail conditions following the exit of shareholders like JD.com and Hong Kong Dairy Company amidst structural retail challenges.
- JD.com
- JD.com has started divesting its stake in Yonghui Superstores to focus on core business. In 2024, JD.com reduced its stake in Yonghui by selling shares to Miniso for around ¥23.48 billion, a significant financial loss compared to its initial investment. JD's partnership with Yonghui aimed to expand its fresh O2O segment, but the collaboration did not yield the expected results, leading to JD's decision to divest and exit this investment.
- Alibaba
- Alibaba is strategically divesting from large supermarket chains like RT-Mart, having already restructured its retail operations. This aligns with Alibaba's aim to focus on core businesses, as it plans to withdraw from non-core retail ventures like RT-Mart and Freshippo. Alibaba's chairman Joe Tsai called this exit "very reasonable," while the group's CFO noted excluding these retail operations could boost the company's adjusted EBITA rate. Alibaba's investments in RT-Mart have depreciated significantly.
- RT-Mart
- RT-Mart, China's second-largest hypermarket, reportedly has a potential buyer. On September 27, 2024, its parent company, Sun Art Retail, received a privatization offer. Private equity firms Hillhouse and DCP are potential buyers. Sun Art's market value has dropped significantly since Alibaba's acquisition. RT-Mart has been closing stores and reducing costs, yet challenges persist. The company plans to enhance its retail fundamentals and explore new growth strategies, like membership and medium-sized stores.
- Sun Art Retail
- Sun Art Retail, a subsidiary of Chinese internet giant Alibaba, has been experiencing financial struggles with significant declines in revenue and profitability. Alibaba, looking to divest non-core assets, received a privatization offer from potential buyers, including Hillhouse Capital and DCP Capital. The company's market value has dropped by over 70% since Alibaba's investment, and uncertainties remain regarding the deal's progress and finalization.
- Pangdonglai
- Pangdonglai is a boutique supermarket chain based in Henan, China, known for defying trends like cost-cutting and price wars. It has 12 stores in Xuchang and Xinxiang, with a significant focus on customer experience and employee happiness. Pangdonglai has been collaborating with Yonghui Superstores to revamp its outlets, sharing its retail approach and helping Yonghui explore new retail strategies.
- Walmart
- The article mentions that in 2016, JD.com and Walmart engaged in a stock swap, with JD.com acquiring Walmart's e-commerce platform, Yihaodian, to expand its online supermarket offerings. There's no further detail about Walmart in the context of the broader discussion on the shift in retail strategy by Chinese e-commerce giants.
- Costco
- The article mentions that Costco's retail model is noted for large packaging and high-quality, low-priced products, which has proven successful in China. It is compared to the ideal retail model for China, alongside the praised Chinese retailer Fat Donglai, suggesting an opportunity for adapting such a model to meet Chinese consumer needs. Such a model is deemed more suitable than traditional Chinese grocery models.
- Sam's Club
- The article mentions Sam's Club in the context of its successful model in China, highlighting its large packaging, high-quality products, and warehouse-style, membership-based business approach. This model, along with Costco's, is cited as an example of growth in the supermarket industry, compared to traditional formats facing challenges. The discussion suggests that Sam's Club's model may offer insights into evolving retail strategies suitable for consumer needs.
- Meituan
- The article mentions Meituan as one of the platforms where Yonghui Superstores are listed. It notes that Meituan, which started with food delivery, has ample traffic and a higher conversion rate for retail, unlike JD.com, which struggled to transition its consumer electronics-focused traffic to fresh grocery retail effectively.
- Belle International
- Belle International was privatized in 2017 through a record-setting HKD 53.1 billion deal led by Hillhouse Capital and CDH Investments. Post-privatization, Hillhouse invested heavily in Belle, strategically focusing on the company's operations. In 2019, Belle's sportswear business, Topsports, was spun off and listed in Hong Kong, reaching a peak market value of around HKD 700 billion, although its current valuation is approximately HKD 140 billion.
- Topsports
- Topsports, a subsidiary of Belle International, is highlighted as a significant player under Hillhouse Capital's management. In 2019, after acquiring Belle, Hillhouse successfully spun off Topsports, which became China's largest distributor for international sports brands like Adidas, Nike, Puma, Converse, and others. Despite its strong market position, Topsports' current market value is approximately HKD 140 billion.
- In 2015:
- JD.com enters into a partnership with Yonghui Superstores, acquiring a 10% stake for 4.31 billion yuan.
- January 2016:
- Alibaba opens its first offline supermarket, Hema Fresh, in Shanghai's Pudong district.
- 2016:
- JD.com engages in a shares swap with Walmart, acquiring Yihaodian to expand its online supermarket presence.
- 2017:
- JD.com establishes its own supermarket, 7FRESH, benchmarking against Alibaba's Hema Fresh.
- 2017 and 2018:
- Alibaba spends nearly 50 billion Hong Kong dollars to acquire a controlling interest in Sun Art Retail Group.
- By October 2020:
- Alibaba increases its stake in Sun Art Retail Group to 77.02% by purchasing more shares.
- March 31, 2022:
- Sun Art Retail's fiscal year ends with a revenue drop of 29.3% to RMB 88.134 billion, turning a profit to a loss of RMB 739 million.
- February 2024:
- Alibaba's Chairman Joe Tsai describes the traditional brick-and-mortar retail business as a "non-core focus."
- In March 2024:
- JD.com reduces its stake in Yonghui Superstores through bidding and block trading systems.
- June 2024:
- JD.com further reduces its stake in Yonghui Superstores.
- June and July 2024:
- Ye Guofu visits Yonghui's adjusted stores.
- September 23, 2024:
- Miniso announces the acquisition of the stakes of the two largest shareholders in Yonghui Superstores, Hong Kong Dairy Co. and JD.com.
- September 27, 2024:
- Sun Art Retail Group suspends trading and discloses it received a privatization offer.
- November 14, 2024:
- JD.com CEO Xu Ran explains in an earnings call that JD.com's primary reason for exiting Yonghui was to focus on its core business.
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