After 19 days of closed store adjustment, Yonghui Supermarket Zhengzhou Xinwan Plaza store reopened with a new look, attracting a large number of customers to queue up in advance, even implemented limited flow control shortly after opening.

This 'explosive reform' action not only improves the shopping experience of customers, but also significantly boosts the stock price and market cap of Yonghui Supermarket.

On June 19th, Yonghui Supermarket rose sharply in the afternoon and even surged nearly 9% at one point. By the close, the stock price had fallen slightly but closed up 2.48% at 2.89 yuan/share, with a turnover of more than 800 million yuan. Zhongbai Holdings Group also rose strongly and rose to the daily limit until the close.

During the 'explosive reform' period, the market cap increased by 4.9 billion yuan.

Yonghui Supermarket has previously faced the dilemma of declining revenue and losses.

In 2023, Yonghui Supermarket's revenue was 78.642 billion yuan, a year-on-year decrease of 12.71%, with a net loss of 1.33 billion yuan.In the past three years, Yonghui Supermarket's cumulative losses have reached as high as 8 billion yuan, and revenue has also decreased year by year.

In the eyes of many people, the 46th in the '2023 China Chain TOP100' helped the 4th, known as being a 'little brother' helping the 'big brother', and facing the dilemma of the aforementioned performance, Pinduoduo's 'explosive reform' has become the focus of everyone's attention.

The 'explosive reform' includes optimization of product structure, adjustment of movement lines, update of equipment and facilities, training of professional skills, and improvement of employee benefits.

Specifically, Yonghui Supermarket delisted 10,841 SKUs, accounting for 81.3%, and added 12,581 SKUs, accounting for 80% of new SKUs. In terms of movement line layout, the mandatory movement line was cancelled, the store channel was widened, and cigarette and wine cabinets, customer rest areas, baking areas, etc. were added to enhance the shopping experience of customers. In terms of equipment and facilities, daily fresh cold chain was added, and the proportion of overall hardware facility updates reached 45%.

Source: Large River Wealth Square

In addition, there have been nearly 30 training sessions, which have improved the professional skills of employees. In terms of employee benefits, the salary has been increased from 2500 yuan to 4500 yuan, and the average daily working time does not exceed 8 hours, with added annual leave.

These measures have been positively received in the market, and Yonghui Supermarket's stock price has risen sharply during the adjustment period. From the announcement of the adjustment of this store on May 27th to today, the company's stock price has increased from 2.35 yuan to 2.89 yuan, an increase of 22.98%, with a market cap increase of 4.9 billion yuan.

Obviously, Pinduoduo's influence and adjustment effect have been recognized by the market.

In addition to Yonghui Supermarket, Pinduoduo has also 'explosively reformed' Bubugao Supermarket. On June 11th, the official WeChat public account of Bubugao Group announced that Two Bubugao Supermarket stores adjusted by Pinduoduo during the Dragon Boat Festival holiday performed well, with a total sales volume of 10.8325 million yuan.

After the adjustment, the daily average sales of Bubugao Changsha Meixihu store was 1.5003 million yuan, with an average daily foot traffic of 12,400 people; the daily average sales of Xiangtan Jiuhua New World store was 1.3269 million yuan, with an average daily foot traffic of 11,000 people. According to Bubugao Group, the adjustment team has reorganized the store layout, optimized the procurement channels, increased staff salaries and welfare treatment, and enhanced employee service awareness.

Before Bubugao Supermarket, Jiabaile Supermarket in Shangrao, Jiangxi also received Pinduoduo's 'assistance'.

Pinduoduo, a supermarket in Henan, is famous for its innovative management system and generous treatment of employees. Its founder, Yu Donglai, has helped many supermarket companies achieve positive growth through visits and adjustments. In the case of Yonghui Supermarket, Yu Donglai said that the goal of the adjustment is to make the store run normally and not lose money, and hopes that Yonghui can take off again through this adjustment.

However, some points of view hold that the Pinduoduo model is not a universal solution. Song Xiangqing, a well-known economist and vice president of the China Commercial Economics Society, believes that the effectiveness of the adjustment and reform depends on two factors:

First, whether the adjustment and reform team can adapt to local conditions and carry out precise grafting of the Pinduoduo model, and second, the degree of acceptance and cooperation of the investors of the adjusted and reformed enterprises.

Although the adjustment and reform of Yonghui Superstores and BBK have achieved preliminary results, their future development still needs to be observed. Yu Donglai, chairman of Pinduoduo, also reminded that the daily revenue of Yonghui Superstores after the adjustment and reform can be increased by 5 times, but this is a long-term process that needs to be taken slowly.In addition, last night, some retail self-media reported that Yonghui Supermarkets plans to significantly optimize its existing store system by closing around 200 tail-end stores in 2024, accounting for about 20% of its current store count. On June 19, the media requested confirmation from Yonghui Supermarkets officials regarding this matter. Yonghui Supermarkets responded that they "have no comment on this at the moment."

On the same day, when Yu Donglai, founder of Pinduoduo, was interviewed by the media, he mentioned his expectations for Yonghui's adjustment and reform, "as long as each store can operate normally and not lose money."Generally speaking, Pinduoduo's "explosive reform" has indeed brought new vitality to Yonghui Superstores and BBK, and provided new ideas for the transformation of traditional supermarket enterprises. In the future, whether these two supermarkets can sustain this development trend, achieve a turnaround and wait for market validation!

On the same day, during an interview with the media, Yu Donglai, the founder of Pangdonglai, mentioned his expectations for Yonghui's restructuring.As long as each store can operate normally and not lose money.

At the same time, he also said that Yonghui has made many contributions to China's retail industry and has taken some detours in its later development due to its too rapid development. "We look forward to Yonghui's re-launch through this adjustment and reform.""We look forward to Yonghui's re-launch through this adjustment and reform."

Overall, Pinduoduo's "explosive reform" has indeed brought new vitality to Yonghui Superstores and BBK, and provided new ideas for the transformation of traditional supermarket enterprises.

In the future, whether these two supermarkets can sustain this development trend, achieve a turnaround and wait for market validation!