Yonghui, who has been losing money for three consecutive years, finally remembered the supermarket "big brother" Fat Donglai!
As soon as Fat Donglai extended a "helping hand", the stock price of Yonghui Supermarket immediately rose to the limit, and the attention soared.
For Yonghui, which has lost 8 billion yuan in three years, Fat Donglai's "explosion reform" is very effective, and in just one day, Yonghui's market value has skyrocketed by 2.2 billion, which is the charm of "industry benchmark".
Not only higher than the industry standard, but also cost-effective, the success of Fat Donglai is actually very simple!
Even though Yonghui is one of the top three supermarkets in China, it is still powerless in the face of this "walking wealth and wealth".
In addition to being amazed, will Fat Donglai help the peer giant Yonghui bring a strong "opponent" to himself?
In fact, Fat Donglai has never been worried about the matter of "teaching apprentices to starve to death of masters", because Fat Donglai wants to make the future of the industry broader, and hopes that his peers will make this cake bigger and stronger.
Live like Huawei, become an industry benchmark at the same time, raise the domestic level to a higher level, so as to lead the world!
Now I look at the "apprentice" Fat Donglai Yonghui, can I learn a little "real skills"?
01
Following backgammon, Fat Donglai is going to "explode" Yonghui again!
According to a number of media reports, Fat Donglai once again made a major decision: to start the help and reform of Yonghui Supermarket, which will officially open the adjustment and reform of Yonghui Supermarket Hanhai Beijin Store on June 1, and start the adjustment and reform of Yonghui Supermarket Xinxiang Baolong Plaza Store at the end of June.
For a while, there was a lot of discussion on the Internet, does this mean that Zhengzhou people will be able to visit "Fat Donglai" at their doorstep in the future? Will Fat Donglai help Yonghui create a more powerful "opponent" for himself?
On the day the news was released, the stock price of Yonghui Supermarket rose to a limit, which was also the first daily limit of Yonghui in 2024, and its market value soared by 2.2 billion yuan.
This is just the beginning of Fat Donglai's "explosive reform" Yonghui, and Fat Donglai's courage has been ridiculed by netizens as "walking sky-breaking wealth".
In March, after Changsha BBK Supermarket accepted Fat Donglai's "explosive reform", the average daily passenger flow increased from 2,000 to nearly 20,000, and the turnover rose from 150,000 to 2.1 million.
Yonghui Supermarket, which ranks third in the retail market share, has been anxious about the decline in performance for a long time.
According to the financial report, Yonghui Supermarket has lost money for three consecutive years, with a loss of more than 8 billion yuan.
In the past year, Zhang Xuansong, chairman of Yonghui Supermarket, and Yu Donglai have had no less than four in-depth exchanges.
Finally, "big brother" Fat Donglai came to help.
One is an industry benchmark, the other is a supermarket giant, what kind of sparks will be sparked, let's wait and see!
It is worth mentioning that this time Fat Dong came to help Yonghui Supermarket did not involve returns, and the help team's wages, transportation, accommodation and other assistance costs were borne by Fat Dong himself.
02
In fact, in terms of scale alone, Yonghui Supermarket is far more than Fat Donglai.
Today's Fat Donglai stores are only concentrated in Xuchang and Xinxiang, while Yonghui Supermarket has developed more than 1,000 supermarket chains across the country, covering 530 cities. Ranked second in the top 100 supermarkets in China in 2022 and fourth in the top 100 chain chains in China in 2022.
Yu Donglai, chairman of Fat Donglai, has foresight and is well versed in the essence of the retail industry, and has been deeply engaged in services and products for many years, without overly pursuing large-scale exaggeration, and has become a "benchmark" in the supermarket retail industry.
On the contrary, Yonghui Supermarket has become an industry giant through continuous expansion and huge scale.
Yonghui Supermarket was established in 2001 and landed on the A-share market in 2010, known as the "first fresh stock".
At that time, the industry crisis of offline retail had begun to brew, and leading players such as Xinyijia, Haoyouduo, and Tesco had withdrawn one after another. However, Yonghui Supermarket has bucked the tide and started a road of rapid expansion with the opportunity of listing, and the number of stores has increased nearly 10 times in 10 years, steadily entering the top three supermarket chains in China.
In 2019, Yonghui Supermarket ushered in its peak, with 1,440 stores and 205 new stores that year, with a revenue of 93.2 billion yuan and a net profit of 1.794 billion yuan, both of which reached a record high.
The founders of Yonghui Supermarket, Zhang Xuansong and Zhang Xuanning, have been climbing for 30 years, and with the rapid development of Yonghui, their worth has risen and they once sat on a wealth of 28.2 billion yuan.
However, the subsequent epidemic, intensified online competition and the superimposed impact of the economic environment have put pressure on the performance of supermarkets and hypermarkets, and Yonghui Supermarket has also been unable to reverse the general trend and its development is in trouble.
According to the financial report, in 2023, Yonghui Supermarket will achieve revenue of 78.642 billion yuan, a year-on-year decrease of 12.71%; net loss was 1.329 billion yuan, a year-on-year decrease of 51.90%;
In 2022, Yonghui Supermarket lost 2.763 billion yuan and 3.944 billion yuan in 2021.
After the high point in 2019, Yonghui Supermarket's revenue has declined year-on-year for four consecutive years, and there have been huge losses for three consecutive years, with a total of more than 8 billion yuan.
03
In order to turn around its losses, Yonghui began to experiment with digital transformation and diversification of business formats early on, and also adopted a variety of measures to reduce costs and increase efficiency, such as closing loss-making stores, selling assets, laying off employees, and reducing R&D costs...... The drastic changes have also involved personnel changes at the top level, with three vice presidents resigning from their positions since the beginning of this year, and new changes in the company's board secretary and chief financial officer.
However, the effect has always been unsatisfactory, and the financial report data for the first quarter of 2024 shows that Yonghui Supermarket is still in a state of loss. The operating income was 21.6 billion yuan, a decrease of 8.98% over the same period of last year, and the net profit after deducting non-recurring gains and losses was 599 million yuan, a year-on-year decrease of 3.08%. As of December 31, 2023, the number of Yonghui supermarket stores has been reduced to 1,000.
You must know that the market value of Yonghui Supermarket was as high as 111.8 billion yuan at its peak, and as of the close of trading on May 10, its market value was only 23.2 billion yuan, a decrease of nearly 80%.
After many adjustments and transformations, but repeatedly hitting a wall, Yonghui Supermarket, a Chinese retail giant eager to change, decided to "apprentice" Fat Donglai and introduce Fat Donglai-style management, hoping to be as popular as Fat Donglai.
It is understood that Fat Donglai's assistance and adjustment of Yonghui Supermarket will be systematically adjusted from various aspects such as employee salary, working hours, store planning, commodity reorganization, supply chain, price optimization, and service improvement, which can be said to be unreserved.
"Peers don't have to be competitors, we can also be friends." For Fat Donglai, there is no so-called competitor.
"What Fat Donglai hopes to do is a school, we hope that all companies can get better, and we hope that other companies can influence and change them by learning our culture and system, and hope that they will become enterprises like Fat Donglai, not that Fat Donglai will open many stores."
Yu Donglai believes that this assistance to Yonghui is actually a special period in the industry, a help for the overall development of China's supermarket industry, and also a reminder, reflection and calibration of the development concept of Chinese enterprises.
04
Those who come do not refuse and do not ask for anything in return!
Fat Donglai has gradually become an industry benchmark, and Yu Donglai is becoming more and more a "big brother in the industry".
It is not difficult to find that from Jiabaile to BBK, and then to Yonghui Supermarket, the volume of Fat Donglai's help objects is expanding step by step.
Although Yonghui has been a little weak recently, it is definitely one of the top three supermarkets in China, which shows the great influence of Fat Donglai, which has brought changes to the industry, and a new business model may be born.
Lei Jun once said after visiting Fat Donglai on the spot: Fat Donglai is a "god" in China's retail industry!
Of course, Fat Donglai is not a god, but when you walk into Fat Donglai Supermarket, you can really feel: this is what God feels like!
It is worth mentioning that Fat Donglai is not only good to customers, but also better to employees!
"Fat Donglai announced that employees will leave work 3 hours early" and set up "grievance awards" for employees...... It is necessary for the work to be rewarded, and to gain empathy and understanding is the greatest recognition of the boss to the employee!
Despite its limited profitability, brick-and-mortar retail has been willing to spend money on its employees, and its compensation and benefits system is the envy of its peers: employees take 140 days off a year and are expected to generate more than $10 billion in revenue this year...... Fat Donglai has become the "dream emotional enterprise" of many workers, and such a conscientious enterprise deserves to explode!
Jack Ma also spoke highly of Fat Donglai: it has triggered new thinking for Chinese retailers and is a flag for Chinese companies.
Fat Donglai became popular on the Internet because of its warm corporate culture and meticulous service, and some people said that Fat Donglai's success "cannot be replicated".
So, with its successful experience of standing out from many supermarkets with good quality, low price and good service, can Fat Donglai help Yonghui Supermarket get out of the dilemma of losing money year after year?
The key value of Fat Donglai is that it has completely liberated the productivity of employees, and because it has been supported by high-quality employees from the heart, the measures of fine management promoted can be 100% implemented in Fat Donglai, while in other enterprises may not even be 60%, so Fat Donglai helps Yonghui to quickly improve the level of fine management, as well as the real execution behind it.
Therefore, even if the market value increases by 2.2 billion in one day, whether Yonghui Supermarket can catch this "walking splashing wealth" will still be a challenge.
Fat Donglai's "phenomenal" popularity has also triggered new thinking from Chinese retailers, and it is nothing more than one point to be recognized by everyone:
It is not only higher than the industry standard, but also cost-effective, that is the explosive Tiantiao!
"Supermarket Big Brother" Fat Donglai, "Smart Car" Look at Huawei!
Give people roses, and there is fragrance in your hands!
I hope that more leading enterprises, like Huawei and Fat Donglai, will sprinkle the fragrance of flowers all over the land of China.
Don't forget to click "watching"
Resources:
"Heavy! Fat Donglai will "explode reform" Yonghui", Fuzhou Evening News
"After changing backgammon and changing Yonghui, why does Fat Donglai want to help the "opponent"? Elephant News