These Adjustments by 19 Retailers in 2018 Are Closely Related to You!

Introduction: These adjustments by 19 retailers in 2018 are closely related to you! As the old saying goes, "When the lips are gone, the teeth feel cold." As an important channel, the development of the retail industry is closely related to the food industry and has always been a focus of industry attention. In recent years, the shrinkage of hypermarkets has become a common topic, e-commerce retail has gradually risen, and new formats such as unmanned convenience stores and unmanned shelves have flourished. New retail is becoming the vane of retail development. What will 2018 look like? By sorting out the financial reports and other news reports of 19 retail enterprises, we hope to provide a clear idea: 1. Hema Fresh: Rapid store expansion, integrating upstream products, and strengthening the supply chain system In 2018, Hou Yi planned three things for Hema: The first is store expansion. For example, it plans to open 30 more stores in Beijing, and has set targets of several or about 10 stores in Xi'an, Nanjing, Wuhan, Guangzhou, Shanghai, and Hangzhou; The second is to integrate upstream products, "to establish Hema's own planting bases, breeding bases, and fishing bases nationwide and even globally. We also went to Canada to prepare supplies for the Spring Festival."; The third is to continue strengthening the supply chain system. For example, establish normal temperature and cold chain logistics centers, processing centers, vegetable and fruit processing centers, central kitchens, including the live seafood breeding center we are building, etc. 2. Walmart: In 2018, betting on fresh food front warehouses and vigorously promoting membership system In February 2018, Walmart stopped using the name Wal-Mart, removed the suffix "stores," and directly renamed it to Walmart. This global largest retailer stopped using the name it had used for 48 years to emphasize its dual-market goal of online and offline. In the Chinese market, after a series of strategic cooperation with JD.com in June 2016, it has continuously increased cooperation, focusing on the fresh food sector in 2018. Chen Zhiyu, Vice President of Walmart China, said: In 2018, we will deepen cooperation with JD.com in membership and logistics, and specific projects will be shared with you when they are more mature. But we will increase the integration of JD Plus and Sam's Club membership, and more comprehensively integrate into JD's logistics system to improve the coverage and efficiency of Sam's products, especially fresh products. This is the work to be done in the coming year. 3. Sun Art Retail: Will undergo new retail transformation, with enhanced sustainable profitability Since Alibaba acquired Sun Art Retail in December last year, Sun Art Retail will continue to transform its stores with new retail in 2018. Hema Fresh will enter RT-Mart as the vanguard, upgrading and transforming the fresh food and catering sections of RT-Mart stores. Tmall, which manages many domestic and foreign brands, will also enter RT-Mart stores in the "Tmall Descends to Earth" plan. At the same time, with the overall retail environment recovering, the launch of Jisu Da and RT-Mart Youxian, the development of O2O and B2B businesses, and the layout of new formats such as boutique supermarkets, beauty stores, and unmanned convenience stores, will provide momentum for long-term growth. In the short term, Feiniu.com is also expected to turn losses into profits, and profit margins will continue to improve. 4. Carrefour: More focus on smart retail and selling organic food On January 23, 2018, French retail giant Carrefour released its "Carrefour 2022 Plan," announcing it would cut 2,400 jobs at its French headquarters and shift its business focus to e-commerce and organic products. According to the "Carrefour 2022 Plan," Carrefour will focus on online food sales in the future, planning to invest 2.8 billion euros in e-commerce over five years, striving to increase e-commerce food sales to 5 billion euros. At the same time, Carrefour's goal in the organic food sector is to achieve sales of 5 billion euros by 2022, and provide financial support to agricultural operators to guide them in transitioning to organic production. With cooperation with Tencent and Yonghui, Carrefour will increase its online visibility, increase traffic for offline and online retail businesses, and benefit from Tencent's advanced digital and technical expertise to develop new smart retail plans. Tencent will further develop retail services on its social platform and promote the application of WeChat, WeChat Pay, cloud computing, and other services within the Carrefour ecosystem. 5. Yonghui Superstores: Continue rapid store opening and accelerate the establishment of a membership system Yonghui Superstores achieved revenue of 58.395 billion yuan in 2017, a year-on-year increase of 18.61%; net profit attributable to the parent company was about 1.801 billion yuan, a year-on-year increase of about 45%. In 2018, it is expected to continue rapid store opening, providing momentum for performance growth in 2018. At the same time, the scale effects of stores in sub-new areas such as Sichuan and East China are gradually emerging, and profitability is expected to continue improving. Online, it is expected to accelerate the establishment of a membership system in 2018, integrating global supply chain resources into the Yonghui Life APP to enhance self-traffic generation capabilities. As of now, Yonghui has 594 large stores, over 200 life stores, and 28 Super Species stores, and it is expected that in 2018, it will open 150, 800, and 100 new stores respectively. 6. Zhongbai Group: Annual report forecast increase of more than nine times, continuing to explore unmanned convenience store business On the evening of January 19, Zhongbai Group announced that for 2017, the company expects net profit attributable to listed company shareholders of 65.8 million to 69 million yuan, an increase of 918% to 967% compared with the same period last year. As of the end of the third quarter of 2017, the company had 1,077 chain outlets, including 175 Zhongbai warehouse supermarkets (67 in Wuhan, 77 in Hubei outside Wuhan, and 31 in Chongqing); 873 Zhongbai convenience supermarkets (including 148 Zhongbai Lawson convenience stores and 35 neighborhood fresh green-label stores); 11 Zhongbai department stores; and 18 Zhongbai appliance stores. In 2018, while optimizing business, it will continue to strengthen internal management, including promoting product reduction and new product introduction, increasing joint direct procurement with Yonghui; strengthening human resource management, increasing the implementation of the "hourly wage system," actively exploring the "partner" system, and increasing the reform of partnership operations. In addition, it will continue to explore the development of new businesses such as Zhongbai Lawson convenience stores and unmanned convenience stores to open up incremental markets. At the same time, according to the company's official WeChat, Zhongbai Group opened its first unmanned convenience store using vending machine technology on January 8, 2018, at East Lake Greenway - Zhongbai Haobang E-Go (Tianyuan Tongqu Store), and will gradually open 4 more stores. 7. Wumart: Fully building a supermarket + catering scenario-based complex In 2017, offline large supermarkets accelerated transformation. In addition to "slimming down," many supermarkets chose to cross over into catering. Wumart also launched 3 "supermarket + catering" stores, namely Hangzhou Jinjiang Store, Beijing Lianxiangqiao Store, and Jinbaojie Store. Among them, Hangzhou Jinjiang Store is the first community store opened by Wumart in East China, and the two Beijing stores were upgraded and renovated on the original basis. Not only that, Wumart Supermarket also joined hands with Duodian Dmall to launch a "self-service shopping" model, further deepening the new retail layout. According to reports, consumers use the Duodian APP to scan product barcodes, and the products are automatically added to the electronic shopping cart. After checkout and payment, when leaving the store, they go to the self-service checkout counter, scan the QR code generated by self-service shopping on the "small white box," and after system verification, they can leave the store, skipping the queue payment step. In addition to exploring new retail, in 2018, Wumart will conduct in-depth discussions with Evergrande on future deep cooperation in large commercial complexes, community commercial centers, and big data-based community supporting services, and reached full consensus. In the future, Wumart will enter hundreds of Evergrande commercial projects nationwide, achieving a strong alliance and jointly exploring new models of commercial development in the wave of new urbanization. 8. Hongqi Chain: Creating a new format of "goods + fresh food + services" On February 10, 2018, after Yonghui acquired shares in Hongqi Chain and became the second largest shareholder, the upgraded stores jointly built - Hongqi Chain Haichang Road Branch and Huarun Road Branch - debuted in Chengdu. Next, Hongqi Chain will be committed to creating a new format of community life stores with "goods + fresh food + services," and will gradually open 300 similar stores, with other stores strengthening fresh food to varying degrees. It will also strengthen the intelligent construction of information platforms and create a self-service shopping model. 9. Better Life: Competing in new retail, deeply cultivating the Southwest On February 23, Better Life announced that it signed a strategic cooperation framework agreement with Tencent and JD.com, transferring 6% of shares to Tencent and 5% to JD.com. This will help Better Life in 2018 to use Tencent and JD's online data and traffic resources to expand online retail channels and connect online and offline, thus "embracing" new retail. 2018 is the second year of Better Life's implementation of its core three-year strategy of "solidifying Hunan, strengthening Guangxi, doing well in Jiangxi and Sichuan, and developing the Chongqing market." On the basis of opening 50 new stores in 2017, 2018 will still maintain the momentum of opening 100+ new stores. Among them, the Xintiandi project is a key tool for Better Life's layout in third- and fourth-tier cities in the Southwest. As of now, Better Life has opened 9 Better Life Xintiandi stores in Hunan, Sichuan, Guangxi, and other places. 10. Lotus: Strengthening online and offline integration, expanding the overall market On the evening of February 23, Lotus announced its 2017 annual results. In 2017, the company achieved revenue of 9.655 billion yuan, a year-on-year decrease of 4.3%; net profit attributable to shareholders of the company was 179 million yuan, turning losses into profits. On October 11, 2017, Lotus and JD Daojia announced that more than 20 Lotus stores in Shanghai and Kunshan had joined JD Daojia, and the two sides would jointly strengthen cooperation in online business. This is another move by Lotus East China after acquiring 5 stores under Shanghai E-Mart Supermarket Co., Ltd., Shanghai Xinyi Department Store Co., Ltd., and Kunshan E-Mart Shopping Center Co., Ltd. last month. Lotus Group currently has 70 retail stores with a total sales area of approximately 525,000 square meters. The future focus is to appropriately expand the overall market while innovating the supply structure and improving the quality and efficiency of the supply system. In 2018, the group plans to further strengthen network expansion and continue to be very cautious in selecting new store locations, which is crucial to ensuring quality and improving profitability. To meet different customer needs and develop different business models, the company is actively studying the development of small retail businesses. 11. Hualian Supermarket: Performance turns losses into profits, continuously strengthening operational capabilities On January 29, Hualian Supermarket released its 2017 annual performance pre-profit announcement. The company expects that in 2017, net profit attributable to listed company shareholders will turn from losses to profits compared with the same period last year, achieving net profit attributable to listed company shareholders of 94.23 million yuan. Since the first half of 2017, Hualian Supermarket has been continuously strengthening its operational capabilities. In terms of operations, it adjusted the product structure, strengthened operational management, strengthened logistics construction, and promoted institutional reform; in terms of development, it expanded new stores while ensuring quality, and improved the incentive and constraint mechanism for new stores. As of the end of the third quarter, the company had 156 stores, including 144 life supermarkets and 12 premium supermarkets. 12. Renrenle: Expected loss of 500-600 million yuan in 2017, actively embracing new retail Renrenle expects net profit for 2017 to be -600 million to -500 million yuan, a year-on-year decrease of 1092.05% to 926.71%. On January 15, 2018, Renrenle and JD Daojia jointly announced that 41 core location stores of Renrenle Supermarket in Xi'an, Tianjin, Chengdu, Shenzhen, and other places had officially joined JD Daojia. It is expected that before the Spring Festival of 2018, 21 stores under Renrenle Supermarket in Changsha, Chongqing, Guangzhou, and other places will also gradually join. A relevant person in charge of Renrenle also revealed that in the face of consumption demand upgrading, Renrenle has smoothly passed the transformation pain period. In the future, Renrenle will continue to actively embrace new retail, increase cooperation with JD Daojia, and deeply coordinate, gradually bringing its new formats such as lesuper premium supermarket and lefresh fresh supermarket to JD Daojia, providing more categories such as high-end fresh vegetables and fruits, high-quality meat, imported healthy food, and other imported goods from around the world. 13. Jiajiayue: Opening 100 stores in 2018, deeply cultivating Shandong In the first three quarters of 2017, Jiajiayue achieved revenue of 8.386 billion yuan, a year-on-year increase of 3.49%; net profit attributable to the parent company was 225 million yuan, a year-on-year increase of 25.94%. Jiajiayue is a leading supermarket chain in Shandong, with business concentrated in the Jiaodong region. As of now, the company has a total of 654 stores. In 2018, Jiajiayue Life Supermarket will adopt refined fresh food and full physical experience as its development strategy, and will open 100 new stores in 2018. 14. Sanjiang Shopping Club: 2017 revenue decreased by 7.78%, net profit increased by 6.96% Sanjiang Shopping Club achieved operating revenue of 3.777 billion yuan in 2017, a year-on-year decrease of 7.78%; net profit attributable to listed company shareholders was 108 million yuan, a year-on-year increase of 6.96%. Sanjiang Shopping Club stated that the strategic cooperation with Hangzhou Alibaba Zetai led to the divestiture of the cigarette business and the closure of underperforming stores, resulting in a 7.78% year-on-year decrease in operating revenue in 2017. 15. New Huadu: Survival of the fittest, drastic reform of its stores On the evening of January 29, New Huadu released a revised 2017 annual performance forecast. The company expects a loss of 45 million to 55 million yuan in 2017, compared with a profit of 54.3836 million yuan in the same period last year. To optimize corporate management resources, New Huadu has made drastic adjustments to its stores. In the first half of 2017, while opening 5 new stores, it closed 8 stores including Xiamen Xianyue Store, Xiamen Xiang'an Store, Sanming Youxi Store, Jinjiang Hongshan Store, Anxi Datong Store, Quanzhou Qingmeng Store, Fuzhou Dongjie Department Store, and Quanzhou Zhonglou Department Store, with cumulative losses reaching 8.64 million yuan. As of the first half of 2017, New Huadu had a total of 131 stores, including 124 supermarkets and 7 department stores. 16. Xinhua Department Store: 2017 revenue of 7.436 billion yuan, net profit up 69.88% On February 13, Xinhua Department Store released its 2017 financial report. According to the announcement, as of December 31, 2017, Xinhua Department Store achieved revenue of 7.436 billion yuan, a year-on-year increase of 5.49%; net profit attributable to listed company shareholders was 107 million yuan, a year-on-year increase of 69.88%. Xinhua Department Store believes that the 5.49% revenue growth is mainly due to the increase in operating revenue of supermarket stores compared with the same period last year. According to the announcement, in 2017, Xinhua Department Store added 15 new supermarket stores, achieving operating revenue of 3.82 billion yuan, a year-on-year increase of 11.01%. During the reporting period, Xinhua Department Store added 30 new stores, including 1 department store, and closed 22 stores, all of which were supermarket stores. As of the end of the reporting period, Xinhua Department Store had 9 department stores, 8 in Ningxia and 1 in Qinghai; and 137 supermarkets, all in Ningxia except one in Qinghai. 17. China Resources Vanguard: CEO Xu Hui, restructuring new retail in 2018 Recently, Xu Hui, CEO of China Resources Vanguard, accepted an exclusive interview with the "Leaders Look at 2018" column of Economic Observer, and conducted a detailed analysis of the upgrading and transformation of the retail industry, the current industry environment, and business models. Xu Hui, CEO of China Resources Vanguard, said that in 2018, to restructure the new retail industry ecosystem and win users, we will focus on four development directions. Build a regional supply chain system for super-large urban clusters, focusing on the business layout of the Greater Bay Area and the Beijing-Tianjin-Hebei integrated urban cluster. Focus on improving the quality and efficiency of offline hypermarkets. In 2018, Vanguard's hypermarkets will continue to focus on their base areas, adjust the business structure, improve product and supply chain efficiency, and use big data analysis to provide additional services such as catering, travel, and education, transforming to a "goods + services" business model. Continue to upgrade and accelerate the development of Ole' premium supermarkets. Traditional formats cannot meet diversified consumer needs. High-end consumers have increasing requirements for purchasing high-end products, and the market demand for premium supermarkets is gradually growing. Vigorously develop small formats to meet consumers' demand for convenience of "all production factors." Due to changes in consumer habits in recent years, the convenience of small stores fits consumer wishes, and the operation of small formats is more flexible than large stores, making them expected to become the most dynamic format in the future. 18. Meiyijia enters three markets in one month, accelerating national expansion strategy Meiyijia's 2018 started with entering three markets in one month, setting the tone for accelerating national expansion. On January 3 and 16, it opened 12 stores in Chongqing and Zhengzhou respectively; on January 18, 10 new Meiyijia stores appeared in Nanning, Guangxi. According to its official disclosure, Meiyijia will soon enter the Anhui market. In addition, Meiyijia will actively lay out online in 2018. On the one hand, Meiyijia plans to lay out online through B2C business with product differentiation from physical stores; on the other hand, Meiyijia hopes to transform stores into front warehouses and use O2O business to promote online and offline integration. 19. Bianlifeng welcomes its 100th store, will accelerate store layout On February 8, 2018, Bianlifeng held its anniversary celebration and 100-store celebration event in Beijing. Wang Zi, CEO of Bianlifeng Store Operations, said at the event that Bianlifeng is about to usher in the first milestone in its development history, with the number of open stores reaching 100 this month. At the same time, Bianlifeng will also go out of Beijing and begin to lay out nationwide. Stores in Shanghai, Tianjin, Nanjing, and other places will also open after the Spring Festival. Bianlifeng is a startup company with new convenience stores as its core, invested and founded by Zebra Capital. The company was formally established in December 2016, and in February 2017, the first batch of 5 convenience stores opened simultaneously in Beijing's Zhongguancun area. Since then, dozens of stores have been opened in Beijing. -END-