In June of this year, Yonghui's first store after the transformation of Pangdonglai just opened, and in September, Miniso announced the acquisition of Yonghui Supermarket. It only took three months for Pangdong to redesign Yonghui and for Miniso to invest in Yonghui.
On the evening of September 28th, Yonghui Supermarket's WeChat official account Yonghui Tongdao published an article stating that Yonghui Supermarket will continue to learn from Fat Donglai, and Fat Donglai will also continue to assist Yonghui Supermarket in adjusting and striving to achieve its healthy operation goals.
However, the fact is that Yonghui's store in Zhengzhou has run out of stock for some of the products previously supplied by Pangdonglai.
Some of the special supply products in the adjustment store are out of stock
Yonghui Supermarket, founded in 2001, is one of the first circulation enterprises in Chinese Mainland to introduce fresh agricultural products into modern supermarkets. According to official website data, Yonghui Supermarket has developed over 800 chain supermarkets nationwide, covering 29 provinces.
As a large chain supermarket with a peak annual revenue of over 90 billion yuan and a net profit attributable to its parent company of about 1.8 billion yuan, Yonghui Supermarket's revenue has been declining year by year in the past three years, and its operating performance has continued to suffer losses. It will not be until the first half of 2024 that we will achieve a turnaround from losses to profits.
Yonghui Supermarket is determined to seek change. In May of this year, Zhang Xuansong, founder of Yonghui Supermarket, and Li Songfeng, CEO, along with a group of executives, visited Yu Donglai, chairman of Pangdonglai, in Xuchang, Henan. After talks, on May 7th, Yu Donglai decided to launch assistance and adjustment for Yonghui Supermarket.
According to the plan, Pangdong plans to make systematic adjustments in various aspects such as employee salaries, working hours, store planning, product restructuring, supply chain, price optimization, and service improvement. In terms of product strategy, the store's products will fully reference the product structure of Pangdonglai, with Yonghui Supermarket's existing supply chain system as the main focus, and Pangdonglai as a structural supplement. The support and maintenance period will reach one year.
According to previous reports, Yonghui's store has eliminated 70% of its existing products and re planned based on the product structure of Pangdonglai. At the same time, Pangdonglai has introduced its own brand products, including rice strips, DL juice, DL craft wheat beer, DL oatmeal, and DL laundry detergent.
On June 19th, Pangdonglai's first revamped Yonghui Zhengzhou Xinwan Plaza store reopened. On that day, the sales of Yonghui Zhengzhou Xinwan Plaza store reached 1.88 million yuan, which was 13.9 times the average daily sales before the adjustment; The daily passenger flow was 12926 people, which was 5.3 times the average daily passenger flow before the adjustment.
However, just two months later, the Fat Donglai products in Yonghui Supermarket's adjustment store were already out of stock. In early September, a consumer posted a video on social media claiming that some of the Fat Donglai special supply product shelves in Yonghui's store had been vacant since the end of August.
In response to this, Time Weekly recently contacted relevant personnel from Pangdonglai and Yonghui Supermarket. Among them, Pangdonglai staff stated that there are currently three stores assisted by Pangdonglai in Yonghui's adjustment, and the specific supply situation is not yet known. However, according to the previous agreement, Pangdonglai is still in the supply cycle to Yonghui.
The staff of a renovation store in Yonghui Zhengzhou stated that the current situation of some products supplied by Pangdonglai being out of stock is true. Some products such as fruit juice and mineral water are still on sale, while others are out of stock
When asked when the supply will resume, the relevant personnel stated that they are not clear about the future business arrangements, but some of the products currently on Yonghui's shelves are directly purchased from suppliers from Pangdong.
Miniso enters the market
On the evening of September 23rd, Yonghui Supermarket and Miniso announced that Juncai International, controlled by Miniso, plans to acquire 29.4% of Yonghui Supermarket's shares for RMB 6.27 billion, including 21.1% held by Milk Co., Ltd. and 8.3% held by Beijing JD Century Trading Co., Ltd.
During the conference call that day, Ye Guofu, founder and CEO of Miniso, stated that the Fat Donglai model is the only way out for Chinese supermarkets. It was only after seeing the two renovated Yonghui stores in Pangdonglai that I decided to invest in Yonghui.
Judging from the opening time of the Pangdong store, the second store only resumed operations in early August. Based on the estimated date of reaching the agreement, it only took one month for both parties to inspect the store and sign the equity transfer agreement.
With the capital agreement being struck, Miniso will become the new controlling shareholder of Yonghui Supermarket. But currently, the products supplied by Pangdonglai to Yonghui are out of stock. Regarding whether Yonghui Supermarket will carry out large-scale adjustments in the future and what role Miniso will play in it, as of the time of writing, Yonghui Supermarket has not yet replied to the Times Weekly report.
It is worth noting that in the business course sharing in June this year, Yu Donglai stated that there will be no more new adjustment and reform enterprises added. In his recent statement, he once again stated that the action to assist enterprises, support joint business student enterprises, and Yonghui BBK will continue for about two years, and these enterprises can basically make their own adjustments. In order to ensure the normal work and life of Pangdonglai employees, we will no longer send teams to the new enterprise for assistance.
On the evening of September 27th, Yonghui Supermarket issued a stock trading risk warning announcement, stating that there is still uncertainty in the transfer of shareholder equity and that relevant review and approval procedures are needed.
In the latest article released by Yonghui Supermarket on the 28th, Yonghui responded that in the context of assisting and learning from Pangdong's main tone reform, some stores in the first 10 cities across the country are undergoing comprehensive adjustments in terms of product structure, quality and price, store layout and flow, environment, service, and employee benefits; Next, Yonghui Supermarket will continue to learn from Pangdonglai, and Pangdonglai will also continue to assist Yonghui Supermarket in adjusting and striving to achieve its healthy operation goals.