Source | Yilan Business

Supermarkets continued to struggle in the first half of the year. According to data from the National Bureau of Statistics, in the first half of the year, total retail sales of consumer goods reached 24,545.8 billion yuan, a year-on-year increase of 5.0%. Among them, supermarket retail sales increased by 5.4% year-on-year, slightly higher than the overall market. Behind this macro data, there are significant differences in the actual experiences of different enterprises. The performance of some listed companies provides an important window for observing the substance of the current consumption recovery and the real state of the industry. Yonghui's Revenue Decline Largest, Industry Net Profit Halved According to Yilan Business statistics, in the first half of 2025, the total revenue of 12 listed supermarket companies was 73.419 billion yuan, a year-on-year decrease of 13.20%; total net profit reached 265 million yuan, a year-on-year decrease of 48.12%, nearly halved. Among them, four companies achieved growth in both revenue and net profit: Bubugao, Guoguang Chain, Sanjiang Shopping, and Huangshang. Specifically, Bubugao performed best in both revenue and net profit, achieving revenue of 2.129 billion yuan, a year-on-year increase of 24.45%, and net profit of 201 million yuan, an increase of 357.71% compared to a loss of 78 million yuan in the same period last year. Guoguang Chain had the smallest net profit growth among the four, increasing from 19 million yuan in the same period last year to 20 million yuan, a growth of 4.15%. It is worth noting that four companies saw revenue decline but net profit increase: Lianhua Supermarket, Jiajiayue, Hongqi Chain, and China Shunlong. This phenomenon typically indicates that while revenue scale shrinks, companies achieve profit growth by optimizing costs, improving efficiency, or enhancing profit structure. Specifically, Lianhua Supermarket's revenue decreased by 1.305 billion yuan year-on-year, while sales costs decreased by 1.194 billion yuan. Jiajiayue's R&D expenses decreased by 6 million yuan, a year-on-year decrease of 87.69%, and financial expenses decreased by 47 million yuan, a year-on-year decrease of 36.33%. Hongqi Chain's three period expenses decreased by 6.5% year-on-year in the first half. China Shunlong reduced sales costs by nearly 20 million yuan. In terms of revenue, only 4 of the 12 companies achieved positive growth, while 8 experienced varying degrees of decline. The highest revenue was Yonghui Supermarket, ranking first with nearly 30 billion yuan, 3.12 times that of the second-ranked Lianhua Supermarket, but with a year-on-year decline of 20.73%, the largest among the surveyed companies. Jiajiayue ranked third with 9.007 billion yuan, a year-on-year decrease of 3.79%. China Shunlong had the lowest revenue at 246 million yuan, a decrease of 20.19% from the same period last year, with a decline second only to Yonghui. In terms of net profit, 8 companies were profitable, while 4 fell into losses. Among them, Hongqi Chain had the highest net profit at 281 million yuan, a year-on-year increase of 5.33%. Bubugao and Lianhua Supermarket successfully turned losses into profits: Bubugao's net profit reached 201 million yuan, ranking second; Lianhua Supermarket's net profit was 60 million yuan. Liqun Co., Ltd. had a profit of 7 million yuan, a year-on-year decrease of 65.94%, the smallest profit scale. Among the 4 loss-making companies, Zhongbai Group had the highest loss at 255 million yuan, a year-on-year expansion of 79.5%. Yonghui Supermarket turned from profit to loss, with a loss of 241 million yuan in the first half. From an annual perspective, Yonghui has been loss-making for four consecutive years. China Shunlong lost 3 million yuan, narrowing by 82.48% year-on-year. Yonghui, Zhongbai, and Lianhua Lead in Store Closures Changes in store numbers are a direct reflection of retail enterprises' strategic adjustments, market adaptability, and the overall industry development trend. Among companies with available store data, the total number of stores in the first half was 6,691, a decrease of 449 from 7,340 at the end of 2024. In addition, 227 new stores were opened and 631 stores were closed in the first half. Lianhua Supermarket ranked first with 3,091 stores; Zhongbai Group followed closely with 1,526 existing stores; Jiajiayue ranked third with 1,084 stores; China Shunlong had the fewest existing stores, with 39. Yonghui Supermarket had the largest change in store numbers, decreasing by 88 from 775 at the end of 2024 to 552. Bubugao, Guoguang Chain, and Sanjiang Shopping had relatively small changes. In terms of new store openings, the top three were still the above three companies. Among them, Zhongbai Group added 89 new stores, including 18 community supermarkets. Overall, the industry's expansion pace has become conservative, with most companies choosing to reduce or even suspend new store development. Closing stores to stop losses has become the consensus of most companies. Data shows that all 9 companies with available data saw a net decrease in stores. Specifically, Yonghui Supermarket closed the most stores, closing 227 stores in the first half. Zhongbai Group and Lianhua Supermarket closed 177 and 121 stores, respectively. Among them, Zhongbai Group closed 13 hypermarkets and 109 community supermarkets. Other supermarkets also reflect similar trends. According to incomplete statistics from Yilan Business, in 2024, at least 782 supermarkets closed nationwide, including national and even global brands such as CP Lotus, RT-Mart, Maxvalu, and Izumiya, as well as regional brands like Jinan's well-known supermarket Guiren Supermarket and Hubei's local supermarket Fudi Supermarket. Specifically, Fudi Supermarket closed all its stores due to operating difficulties, involving more than 100 stores. Xinglong Family Commercial Group declared bankruptcy, closing its 92 stores. Yonghui Supermarket closed 85 stores. China Resources Group closed 34 stores, including Vanguard, Suguo, and blt. Walmart closed 22 stores, including its first store in Jiangxi, which had been operating for 20 years and once set a record for the highest single-day global sales. Where Does the Crisis Come From? So, what is affecting the development of traditional supermarkets? From external shocks, the diversion effect of e-commerce platforms and instant retail continues to intensify. According to data from the National Bureau of Statistics, in the first half of the year, national online retail sales reached 7,429.5 billion yuan, a year-on-year increase of 8.5%, while total retail sales of consumer goods in the first half were 24,545.8 billion yuan. Based on this calculation, physical retail sales were 17,116.3 billion yuan, a year-on-year increase of 3.75%, significantly lower than online retail sales. This means that consumers' shopping habits are accelerating their shift online. Especially for standardized products that traditional supermarkets mainly sell, such as daily necessities, rice, flour, and cooking oil, consumers can choose to shop online and enjoy the convenience of home delivery. The rise of instant retail has further impacted the survival foundation of supermarkets. First, the geographical moat centered on proximity. Second, the consumer mindset of "one-stop shopping." It reconstructs the relationship between people, goods, and places through the model of "ordering online, delivering quickly offline," transforming the traditional "people looking for goods" into "goods looking for people," significantly raising consumers' convenience expectations. According to the National Bureau of Statistics and the Ministry of Commerce Research Institute, the non-food market of instant retail has maintained rapid growth in recent years, with the overall scale rising from 36.6 billion yuan in 2017 to 650 billion yuan in 2023. It is expected that in 2024, this scale will account for 6.0% of online retail sales of physical goods, with a market growth rate of 20.0%. In addition, emerging channels represented by bulk snack stores and brand discount stores have achieved rapid expansion with focused categories, flexible supply chains, and highly competitive prices. According to data from Zhiyan Consulting, in 2024, China's snack bulk retail market has grown from 4.08 billion yuan in 2019 to 104.59 billion yuan, becoming the fastest-growing and strongest channel in China's snack market. The rapid expansion of the industry scale further compresses the profit space of traditional supermarkets. From internal factors, traditional supermarkets also face multiple bottlenecks. Many stores have been operating for more than ten years, with outdated hardware facilities, unreasonable layout designs, and lagging consumer experiences, making it difficult to attract the younger generation of customers. In addition, lease expiration is also an important factor. As operating costs such as rent and labor continue to rise, many companies choose not to renew leases after they expire. Adjustment and Innovation Go Hand in Hand In response, major supermarkets have also clarified their adjustment directions. First, close inefficient loss-making stores in non-core areas, renovate existing stores, and simultaneously launch online businesses. For example, in the first half of the year, Zhongbai completed renovations of 14 warehouse-format stores and 55 community supermarket stores, with customer traffic increasing by 9% and 6%, respectively. It built an online business matrix, conducting about 500 live-streaming sessions across various formats. Its local life service platform "Baobao Life" was launched, and Zhongbai Neighborhood Shopping sales increased by 16% year-on-year. Yonghui Supermarket opened a total of 124 renovated stores, with 99 of them having launched online businesses. Jiajiayue completed the renovation and upgrade of 30 stores in the first half. Second, focus on business model innovation and transformation, laying out hard discount stores and small and medium-sized community stores. Hard discount stores, characterized by low prices and high quality, cater to consumers' pursuit of cost-effectiveness. According to financial reports, Zhongbai Group is laying out hard discount stores, with its first Xiaobaihui discount store and a new generation food supermarket opening at the end of June. Lianhua Supermarket is actively incubating discount formats in the Zhejiang region, having opened 13 stores covering multiple urban areas in Zhejiang. In addition, companies such as Meituan, JD.com, Hema, and ALDI are also making efforts in the hard discount track. Small and medium-sized community stores also have significant advantages. From a location perspective, small commercial resources around communities are relatively abundant, making it easier to find suitable store locations. Being close to residential areas shortens shopping distances and provides consumers with a convenient shopping experience. From a cost perspective, compared to large supermarkets, small and medium-sized community stores have smaller areas, lower rent costs, and require less labor and operational costs, effectively reducing operational pressure on enterprises. Overall, the supermarket industry is undergoing profound structural adjustments. In the short term, closing inefficient stores and controlling costs are prerequisites for survival. In the medium to long term, it is necessary to rebuild offline experiences and improve operational efficiency through business model innovation, supply chain optimization, and digital transformation. In the future, the value of supermarkets will no longer depend on scale, but on whether they can truly get close to consumers and create differentiated efficiency and experience value.