Yonghui’s Makeover Draws Crowds, but Profits Lag
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Yonghui posted a net loss of 241 million yuan in the first half, reversing a 275 million yuan profit in the same period last year
Yonghui Superstores Co. Ltd.’s sweeping effort to remodel its outlets has driven an 80% average increase in customer traffic at revamped stores, Chief Executive Wang Shoucheng said on Sunday.
Speaking at a new product launch, Wang noted that over 60% of stores that have stabilized post-revamp are now more profitable than at any point in the last five years. Currently, 102 stores boast a net promoter score above 40%, with 19 exceeding 50%, he said.
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- Yonghui remodeled 124 stores by June 2025, increasing average customer traffic by 80% and improving profitability in over 60% of stabilized outlets.
- Despite progress, Yonghui posted a net loss of 241 million yuan in H1 2025 as revenue fell 20.7% to 29.95 billion yuan, due to store closures and renovations.
- The company aims for 300 revamped stores before China’s 2026 Spring Festival and launched new product lines targeting quality-focused middle-class consumers.
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Who’s Who
- Yonghui Superstores Co. Ltd.
- Yonghui Superstores Co. Ltd. is undergoing a significant transformation, remodeling outlets to boost customer traffic and profitability. With CEO Wang Shoucheng leading the charge, the company is focusing on product development, supply chain improvements, and a new corporate culture. Despite first-half losses due to store closures and renovations, Yonghui aims to revamp 300 more stores and achieve 100 high-performing products, targeting middle-class consumers with new "Yonghui Select" and "Yonghui Quality" lines.
- Pangdonglai
- Pangdonglai is a small yet influential Henan-based retail chain known for its high service standards and strong customer focus. Yonghui Superstores has taken inspiration from Pangdonglai's model for its own transformation efforts. This includes flattening corporate hierarchies, retooling supply chains, developing in-house brands, and implementing a worker-friendly approach, such as distributing employee dividends, as seen in Pangdonglai's operations.
- Miniso Group Holding Ltd.
- Miniso Group Holding Ltd. has invested in Yonghui Superstores Co. Ltd. This investment has backed Yonghui's transformation initiative, which began in May and was inspired by the chain Pangdonglai.
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What Happened When
- June 2024：
- The first revamped Yonghui outlet opened.
- May 2025：
- Yonghui launched its Pangdonglai-inspired transformation, backed by an investment from Miniso Group Holding Ltd.
- First half of 2025：
- Yonghui posted a net loss of 241 million yuan, reversing a 275 million yuan profit in the same period in 2024. Revenue declined 20.7% to 29.95 billion yuan.
- Between January and June 2025：
- Yonghui closed 227 stores and opened four, bringing its total to 552 as of June 2025.
- By the end of June 2025：
- 124 revamped Yonghui outlets were completed.
- August 2025：
- By this time, Yonghui had distributed over 31 million yuan ($4.3 million) in employee dividends.
- September 18, 2025：
- Wang Shoucheng was appointed CEO of Yonghui, ending a six-month vacancy.
- Friday, October 10, 2025：
- Yonghui’s Shanghai-listed shares rose 5.16% to close at 4.89 yuan.
- Sunday, October 12, 2025：
- CEO Wang Shoucheng publicly discussed revamp results and company strategy at a new product launch event. Two new product lines were rolled out: 'Yonghui Select' and 'Yonghui Quality.'
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