According to monitoring data from the China Commercial Information Center, retail sales of 50 key large-scale retail enterprises nationwide fell 0.5% year-on-year in 2016, with growth slowing by 0.3 percentage points compared to the same period last year. Online retail growth also slowed; according to data from China's National Bureau of Statistics, online retail sales in 2016 grew 26.2% year-on-year, down 7.1 percentage points from the 33.3% growth in the same period last year.

Overall, in the new economic environment, the retail industry has seen some recovery, but the situation remains severe. As of now, most listed retail companies have published their 2016 annual reports. So, how did they perform overall in 2016, and what are their plans for 2017?

Two Tables to Understand the 2016 Performance of 15 Mainstream Retailers

Store Situation

Retailer | Stores Opened | Stores Closed | Total Stores Walmart | 24 | 13 | 458 Carrefour | 5 | 5 | 263 Yonghui Superstores | 105 | 0 | 319 Hongqi Chain | 538 | 108 | 2704 Renrenle | 12 | 5 | 121 Lianhua Supermarket | 212 | 477 | 3618 Jingkelong | 6 | 19 | 248 CP Lotus | 3 | 2 | 61 Wuhan Zhongnan | / | / | 45 Sanjiang Shopping | 21 | 27 | 158 AEON | 8 | 1 | 85 Liyuan Retail | 29 | 26 | 587 Shun Kelong | 12 | 22 | 75 RT-Mart | 33 | 1 | 368 Auchan | 5 | 0 | 78

Note: Walmart and Carrefour store counts are for China only.

Revenue and Net Profit Situation

Unit: 100 million RMB

Retailer | Revenue | YoY Growth | Net Profit | YoY Growth Walmart | 33445.47 | -0.7% | 1011.83 | -7.2% Carrefour | 5153.61 | -0.1% | 75.69 | -7.4% Yonghui Superstores | 492.32 | 16.82% | 12.42 | 105.18% Hongqi Chain | 63.22 | 15.23% | 1.44 | -19.47% Renrenle | 101.57 | -9.46% | 0.60 | 112.74% Lianhua Supermarket | 266.66 | -2.0% | -4.50 | 11.67% Jingkelong | 118.82 | 3.03% | 0.27 | 7.32% CP Lotus | 100.86 | -5.4% | -5.38 | -2986.7% Wuhan Zhongnan | 40.11 | -9.00% | 0.02 | 104.25% Sanjiang Shopping | 40.96 | -6.00% | 1.01 | 50.69% AEON | 80.04 | 0.7% | -0.21 | -124.9% Liyuan Retail | 43.14 | 3.0% | 1.24 | 4.1% Shun Kelong | 10.89 | 4.8% | 0.24 | -14.8% Sun Art Retail | 1004.41 | 4.2% | 25.71 | 5.2%

In 2016, the 15 mainstream retailers closed a total of 738 stores, while opening over 1,000 new stores. Among them, Yonghui Superstores and Auchan did not close any stores throughout the year.

From a revenue and net profit perspective, the number of retailers with revenue and net profit growth and decline is similar, with revenue declines remaining in single digits. Net profit is less optimistic: Lianhua Supermarket and CP Lotus remain in losses, and some companies saw net profit declines exceeding double digits, indicating that retailers are still in the painful stage of transformation.

While summarizing their 2016 operations, retailers also outlined their plans for 2017.

Walmart

Walmart stated that it is excited about the future of e-commerce in China and that its strategic cooperation with JD.com will continue to expand its e-commerce services in China. Walmart also said it will add 30-40 new stores in China in 2017, upgrade 50 existing stores, and test new hypermarket formats, continue investing in logistics and distribution centers, strengthen private brands and direct imports, and accelerate e-commerce integration.

Carrefour

In 2017, Carrefour will further open all store formats, especially convenience stores, and continue to develop e-commerce. Additionally, Carrefour will further boost non-food and service offerings.

Yonghui Superstores

In 2017, it will actively promote the integrated development of its four major segments: "Yunchao," "Yunchuang," "Yunshang," and "Yunjin". In "Yunchao," it will open more than 100 Bravo stores, selectively enter new provinces, shorten the incubation period, and improve labor efficiency. In "Yunchuang," it will guide consumption upgrades, continue to lead the "supermarket + dining" industry transformation, continue to expand membership stores, create a new "Super Species," and strive to open 24 stores throughout the year. In "Yunshang," it will explore a new B2B2C franchise model and vigorously build the "Caishixian" central kitchen. In "Yunjin," it will strategically invest in Huatong Bank and actively carry out financial services such as factoring and small loans.

Hongqi Chain

In 2017, the company will continue to adhere to the policy of "radiating from Chengdu to surrounding economically developed regions," consolidate and enhance its leading advantage in the convenience store industry within the greater Chengdu area, and strive to achieve the new business model goal of "chain + internet + finance."

Wuhan Zhongnan

Wuhan Zhongnan will actively explore specialty supermarkets, such as fresh-produce-enhanced supermarkets and other business models. It will reclassify and reposition existing supermarkets, positioning some stores as small shopping centers with specialty supermarkets + multi-function + compound dining; upgrade community stores with development potential to become refined community supermarkets. Optimize and strengthen the supply chain, focusing on imported and fresh products as key supermarket operations, and introduce imported goods from national and provincial agents nationwide.

Renrenle

In 2017, Renrenle will achieve its annual business plan through the following main tasks: 1. Accelerate the adjustment and upgrade of shopping environments and product structures, continue renovating old stores, optimize shopping environments, improve product quality, and increase supporting services; 2. Continuously strengthen fresh food operations, strengthen the construction of fresh food procurement bases, and adhere to the self-operated model; 3. Comprehensively promote omni-channel business in stores, both online and offline, increase the proportion of online shopping with in-store fulfillment, and optimize platform services such as Renrenle Go, Renrenle Paradise, and Renrenle Micro Mall.

Sanjiang Shopping

As a pilot for innovative stores, the "Yongjiang Store" has begun trial operations, sounding the first whistle for the company's new retail transformation. Subsequent follow-up, adjustment work, and opening innovative stores will be the focus of 2017.

AEON

Seeking opportunities and expanding in mainland China through prudent store-opening strategies, it is expected to open four stores in China in 2017.

Lianhua Supermarket

Accelerate the construction of a central kitchen to promote the comprehensive upgrade of fresh food operations from "raw" to "cooked." Use e-commerce technology to actively expand online channels, focusing on developing "home delivery" business and online-order-store-pickup services; build a complete O2O value chain to fully leverage the advantages of both offline and online. Accelerate the development of supermarket and convenience store formats, with convenience stores entering new regions. At the same time, open premium supermarkets and explore the transformation and upgrade model of convenience store format 2.0.

Liyuan Retail

Increase efforts to focus on expanding "Internet+" initiatives, analyze how people interact and influence each other, and then develop new products and services suitable for these relationships. The group will continue to grow its "online-to-offline" retail business by responding to customers' purchase intentions, thereby driving high-volume, high-quality transactions in stores.

Jingkelong

Leverage the advantages of physical stores and promote integrated online-offline development. On the basis of continuously improving and refining community fresh food store operations, continue to accelerate the adjustment of convenience store formats; in line with the trend of online-offline integration, increase the promotion of the Jingkelong mobile APP through various channels such as WeChat traffic, in-store promotions, and member conversion, and continuously improve and optimize APP functions.

CP Lotus

Choose new store locations more prudently to ensure quality and profitability. Continue to grasp new consumption trends, improve product mix, increase direct procurement, and enhance brand development capabilities.

Sun Art Retail

It is expected to achieve this by leveraging the advantages and core competitiveness of physical stores (such as mature supply chains, professional procurement, strong execution capabilities, excellent logistics and IT systems) and as an online carrier. In 2017, it will continue to make physical stores internet-based, continuously consolidate the O2O business model, and also try more different types of retail formats.

Shun Kelong

Continue to promote the development of its own e-commerce business, fully leverage the synergies between retail stores and its own e-commerce platform "Haoligou," further develop O2O projects, and improve revenue growth.

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