This year, Yonghui Supermarket (601933.SH) performance is under pressure. The financial report shows that in the first three quarters of this year, Yonghui Supermarket attributable to shareholders of the listed company's net profit of -2.178 billion yuan, and before that, Yonghui Supermarket has not yet appeared in the case of negative net profit.

Pressure at the same time in the stock price. As of the close of business on November 4, Yonghui Supermarket share price of 4.17 yuan / share, from the end of the first quarter of last year's share price of 10 yuan / share has fallen nearly 60%.

Performance continued to lose

On October 29, Yonghui Supermarket released its 2021 third quarter report. The financial report shows that in the third quarter of 2021, Yonghui's operating income was 23.008 billion yuan, a year-on-year increase of 3.86%, a year-on-year increase of 12.28%; net profit attributable to shareholders of listed companies was -1.095 billion yuan, a year-on-year decrease of 726.56%.

In fact, the performance of Yonghui Supermarket this year has been unsatisfactory. In the first three quarters of this year, Yonghui Supermarket's net profit attributable to shareholders of listed companies was -2.178 billion yuan, a year-on-year decrease of 207.37%.

For the reason of the loss, Yonghui Supermarket said in the financial report, the company's first three quarters of net profit attributable to the mother, net profit and non-deductible net profit and earnings per share year-on-year decline is mainly affected by three aspects: by the epidemic and the community group purchasing and other external environment, as well as the company's initiative in the first half of the year to adjust the structure of the inventory reduction of the comprehensive impact of the company's first three quarters of the decline in revenues and gross profit margins; by the impact of the fluctuation of share prices, the company held at the end of the period The impact of stock price fluctuations, the company held at the end of the period of the fair price of financial assets fell in the first three quarters of the mother of the net profit decreased by 566 million yuan; the implementation of the new leasing standards make the company in the first three quarters of the mother of the net profit decreased by 300 million yuan.

In fact, in addition to Yonghui Supermarket, the entire industry's three-quarter results are not satisfactory. According to Wind data, Jiajiaoyue and Hongqi Chain's profits in the first three quarters were all lower than last year.

Bao Yuezhong, a new retail expert, said, "This year, the supermarket industry is mainly affected by the diversification of channels more. Community group purchasing has a certain impact on the supermarket, but the volume of community group purchasing is still small, can not have a greater impact on the supermarket industry. Therefore, the supermarket industry once the problem is said to be caused by community group purchasing is inappropriate. In fact, the overall poor performance of the supermarket industry has existed five or six years ago."

For Yonghui's situation, Lai Yang, president of the Beijing Jingshang Strategic Research Institute, said: "In the other hypermarkets earlier decline, Yonghui due to fresh food to do well, attractive to consumers, cover up the hypermarket industry in its own decadence. But the hypermarket business in the gradual demise of the enterprise must be to a new type of supermarket transformation, and in this regard Wing Fai did not successfully explore. In addition, the current fresh food business competition has intensified, the daily fresh and Dingtong buy food have led to the diversion of consumers, other supermarkets are also increasing investment in fresh food. Yonghui in the absence of new growth points, the core revenue mainly rely on hypermarkets, which is clearly not ideal at the moment."

"Yonghui-style" warehouse membership store: one piece is also wholesale price

Competition in the warehouse membership store industry is heating up, in addition to Costco, Walmart Sam's membership store to increase investment in addition to the domestic retail enterprises Box Horse, Carrefour have also entered.

In this context, Yonghui Supermarket also entered the warehouse membership store track. In May this year, Yonghui Supermarket opened its first warehouse membership store in Fujian. As of the end of June, the national re-store opened up to 20 warehousing stores. Yonghui Supermarket half-yearly report shows that during the reporting period, warehouse store sales amounted to 150 million yuan.

At the same time, in terms of merchandising, and Sam and other enterprises to sell large packages of products in a different way, Yonghui warehousing membership store stores playing "a piece of wholesale price" slogan, Yonghui warehousing membership store stores similar to Sam's membership store large packages of products is very small, most of the products of the brand, specifications and general Yonghui store similar, only the price will be cheaper. The price will be even cheaper.

Ding Liguo, an expert in the retail industry, said: "Wing Fai's warehouse store is different from Costco and Sam's warehouse membership store, the business logic is different, and the profit model is also different. Yonghui's so-called warehouse store is nothing more than a variant of the hypermarket, there is no fundamental change."

In the opinion of chain business expert Li Weihua, Yonghui into the membership warehouse supermarket advantages and disadvantages are very obvious.

"The advantage lies in the well-known brand, a certain supply chain foundation, a considerable number of consumers and member groups, a ready-made team, the capital chain is also good, etc.; disadvantage lies in the late entry into the membership market, no experience accumulation of mature and successful stores, and unfamiliarity with the operation of the membership model. For example, not charging membership fees is contrary to the main profit model of the popular membership business; lack of professional membership warehousing supermarket team; commodities and supermarkets are the same is a violation of the membership warehousing supermarket commodities differences, uniqueness, etc.; its supply chain due to long-term commitment to the domestic, resulting in the lack of the ability to search the world for the middle class like a unique, well-known commodities and so on." Li Weihua said.

Walmart China CEO Zhu Xiaojing said in an interview with 36 Krypton that the essence of the membership model is that members pay to enter, hoping to get the goods that can not be bought outside.

For the Yonghui warehouse membership store model, Shanghai Shangyi consulting general manager Hu Chuncai said: "The current domestic warehouse membership store to take differentiated competition, commodity force is very strong, so the corresponding gross profit return is also relatively high. And from the Yonghui warehouse membership store model, due to do is standard products, compared with e-commerce has a natural disadvantage. Need to look at when it is after the decline in gross profit, the corresponding incremental sales can give the whole gross profit to bring back up. If it can do is appropriate; if it can not do, then Yonghui this strategy may fail."

Exploration in the mist

In the history of Yonghui, there have been many industry explorations. 2017, in the context of the hot new retail concept, Yonghui explored the "retail + catering + APP" model of super species, which opened nearly 30 stores that year. In 2017, against the backdrop of the new retail concept, Yonghui explored the "retail + catering + APP" model of super species and opened nearly 30 stores that year. But since then, super species continued to lose money until it was divested from the listed company at the end of 2018. In addition, Yonghui has also explored mini stores, boutique supermarkets and other formats.

In terms of the operation of Yonghui mini stores, Wen Zhihong, general manager of Hehong Consulting and an expert in chain operations at Hejun Consulting, said, "In the last year or so, it is rare to see the progress of Yonghui mini stores. According to my observation, Yonghui mini should not have further strength, and even some stores are closed. In fact, large stores, small stores seem to be selling goods, in fact, the logic behind the operation is a big difference. Small community stores will have higher requirements for site selection, product selection, and refined operation. In addition, many small fresh food store chain is not easy to earn money, because although fresh food is high-frequency, but due to the high sensitivity of consumers to the price of fresh food, its gross profit is not high, the logistics cost is not low, in this case, for the refinement of the operation of the enterprise's requirements are higher. In my opinion, the small fresh food store is more suitable for the expansion of the franchise rather than direct operation, direct mode of enterprise personnel costs, management costs are very high. So in the mini store this piece, I think Yonghui did not find a best model."

Interestingly, in August this year, Yonghui Supermarket's fourth session of the Board of Directors of the thirtieth meeting of the deliberations, director Liao Jianwen for the turnover of personnel raised objections, he believes that the candidate (Mr. Li Songfeng) to be supplemented in the retail, especially in the supermarket industry, the experience and leadership and organizational skills.

In this regard, Hu Chuncai argued, "Yonghui's huge investment in digital management will allow it to have some explosive power in the future. But digital management is helpful to improve management efficiency, but still need to have accurate business positioning to play. China's next wave of consumer upgrades is a dividend, brick-and-mortar stores if you can not seize this dividend, it is difficult to have a big future."

For the next wave of dividends, Hu Chuncai believes that "the next wave of consumption dividends of brick-and-mortar stores, in fact, is like semi-finished fresh food, finished fresh food, cooked food, pasta products, etc., these products can significantly improve the quality of life of consumers, as people often say, want to eat better."