author: Retail eight groups, thematic map from: IC photo
In recent years, with the changes in China ’s shopping habits, the same-store sales growth in the store industry has been weak, and the number of new stores has continued to decline. The players in the supermarket industry have gradually transformed from small stores to small businesses. The road to transformation began.
Reflections under Yonghui mini’s high-speed development
Yonghui, as the main force to take the lead in experimenting new retail and O2O, has bucked the trend in the past five years, and its stores and revenue have maintained double-digit growth. Carrefour site. The 2019 annual report and the quarterly report for the first quarter of 2020 announced on April 29 show that the main business income in 2019 is nearly 85 billion, an increase of 20.4%, and entering 2020, the first quarter revenue and profits both achieved substantial growth, year-on-year growth came to 31.6% and 39.5% respectively. At the same time, the net cash flow at the end of the first quarter reached 4.2 billion yuan.
With such dazzling achievements and cash flow, it should be leaping forward and investing more. However, in the past 15 months, Yonghui mini has opened 580, but at the same time closed the store has reached 121 Among them, 74 of them were closed in the first quarter of 2020. The overall project failure rate so far is 20.9%, and there is news that the market will continue to consolidate after the year and hundreds of stores will be closed.
In just one year, is it normal for more than one-fifth of store failures? This means that these stores have been internally determined to be completely unsuitable for continued operation, and there will be no signs of improvement in the short term, exposing the problem of unsatisfactory implementation of strategies such as site selection and operation. But what is curious is that Yonghui is not a net red box horse and is a senior player in the industry. It has a highly efficient operation capability in the hypermarket and supermarket formats that has been verified by the market. It has also been explored and tried in the past few years. New retail and other formats, from Yonghui Life to Super Species to Yonghui Mini, can be said to have gone through three rounds of complete trial and error and iteration cycles. What are the reasons for the high failure rate that still exists today? We try to analyze the logic and reasons behind this from various angles such as development and operation.
Analysis of development model and selection of business district
Yonghui mini is positioned as “Yonghui at the door of the house”. Most stores are located close to the user ’s door and the community. The small store of 300-500 square meters provides convenience for residents. The goal should be to create High-frequency, low- and medium-price customer places.
However, in the development of Yonghui mini, we learned that in addition to the traditional web development team, store operations employees have also joined the ranks of recommending finds. This bottom-up model undoubtedly supports its rapid expansion rhythm , After the founder Zhang Xuansong took the oath in May 2019