Yonghui Supermarkets recently responded to market rumors about its potential receipt of assistance from Pang Donglai. Staff indicated that Yonghui will learn from Pang Donglai, acknowledging Pang Donglai’s strengths. As for the messages about taking over or assistance that are circulating online, there is currently no more information to disclose.
Meanwhile, reports suggest that Pang Donglai plans to implement an assistance program for Yonghui Supermarket and has already started working on two stores — Hanhai Beijin and Xinxiang Baolong Plaza. It is said that dedicated teams will be responsible for management, and Yonghui Supermarket will also organize a special team to support this transformation. This news has attracted widespread attention in the industry.
Pang Donglai has previously provided help to other brands in the retail industry, including Jia Baile in Jiangxi and Bubugao in Hunan. The assistance measures have included improving employee management, store layout, product quality, and optimizing service quality. In particular, sales performance at Bubugao stores has seen significant improvement after assistance from Pang Donglai.
Yonghui Supermarket’s business revenue and net profit both showed a downward trend in 2023, which is related to proactive store adjustments and the overall challenges of the physical retail industry. Faced with complex market competition, Yonghui Supermarket plans to optimize its business in 2024 through a series of measures such as reducing costs, improving operational efficiency, and digital transformation.
Yonghui is committed to enhancing products, scenarios, and services, based on the core upgrade logic of these three elements, using technological means to strengthen competitiveness and supply chain efficiency. The company also intends to improve its online business, while enhancing cooperation with third-party platforms, and exploring new business channels in the future.
In addition, due to losses, relocations, and contract expirations, Yonghui Supermarket announced plans to close 31 Bravo stores in the fourth quarter of 2023 to the first quarter of 2024, estimating a loss of approximately 77.6179 million yuan.
Yonghui Supermarket is at a critical stage of its transformational development. In a recent announcement, the company disclosed, after comprehensive consideration, that Vice President Wu Guangwang was unable to fully adapt to the role and responsibility requirements of the Vice President position and therefore suggested the dismissal from his post. Additionally, due to health reasons, Vice President Lin Jianhua cannot continue his duties and, after full consultation, it was also proposed to relieve him of his Vice President duties. These changes have been recognized and agreed upon by Yonghui Supermarket’s board of directors.
It is reported that Yonghui Supermarket is committed to focusing on its core business and continuously optimizing its supply chain structure. The company has taken a series of measures, including closing some less profitable stores and advancing omnichannel digital transformation. These measures are aimed at continuously improving the operational efficiency of the stores. Industry analysis reports indicate that with the advancement of these strategic adjustments, Yonghui Supermarket is expected to achieve a turnaround from loss to profit by 2024.
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