Regarding "Panggai," Yonghui Supermarket's latest disclosure

After nearly two years of deep adjustments, Yonghui Superstores is breaking through from the “survival line” and shifting towards refined cultivation.

On March 27, at the first annual meeting of Yonghui Superstore’s private brand “Quality Yonghui” for 2026, CEO Wang Shoucheng disclosed the company’s latest strategic progress and goals: after the first phase of adjustment, Yonghui Superstores achieved double growth in same-store traffic and sales in 2025, marking the first positive growth in nearly five years. In 2026, Yonghui entered the second phase of adjustments, focusing on refined cultivation of existing adjusted stores, with the goal of “achieving corporate health” by June 2027.

Yonghui Superstores CEO Wang Shoucheng

Achieving double growth in same-store traffic and sales for the first time in five years

In May 2024, Yonghui Superstores embarked on the “Fat Transformation” journey, learning from the operational model of “Fat Donglai.” In September 2025, Wang Shoucheng, the deputy head of the adjustment team, was appointed as the new CEO. He stated at that time that starting from May 2024, Yonghui aimed to take 2 to 3 years to move beyond the “survival line.”

At the annual meeting on the 27th, Wang Shoucheng revealed the core achievements of the first phase of adjustments. He introduced that after three breakthroughs in the first phase of adjustments—“rebuilding the space, disrupting the goods, and reshaping the people”—Yonghui Superstores achieved double growth in same-store traffic and sales for the first time in five years. Additionally, to further reinforce the concept of “people first,” Yonghui continued to promote the “profit-sharing” mechanism, distributing a total of 35.24 million yuan in employee bonuses during the 2026 Spring Festival period.

The performance of Yonghui Superstores’ private brand “Quality Yonghui” was also impressive, with nearly 60 products launched in 2025 that saw sales during the Spring Festival increase by over 70% compared to the previous year.

Wang Shoucheng made it clear that in 2026, Yonghui officially entered the second phase of adjustments, maintaining the same direction by focusing on products, customers, employees, and culture, with a shift from “doing it” to “doing it better,” refining the cultivation of existing adjusted stores, and aiming to “achieve corporate health” by June 2027.

Firmly promoting the “product-centric” strategy

To achieve this goal, supply chain reform has become a core focus.

Yonghui Superstores Vice President and Chief Product Officer She Xianping stated that Yonghui is firmly promoting the “product-centric” strategy, and the “Yonghui Custom” series co-created with leading brands achieved good market performance during the 2026 Spring Festival. For example, Yonghui custom fresh Norwegian salmon saw sales during the 2026 Spring Festival increase more than tenfold compared to 2025, Yonghui custom fragrant glutinous bananas grew over four times, and Yonghui custom selected fresh eggs nearly doubled year-on-year.

It was introduced that in the future, Quality Yonghui plans to create 500 billion-level flagship products, aiming for its private brand sales share to reach 40%.

Yonghui Superstores private brand Quality Yonghui section

Pang Xiaowei, Chairman of Zhejiang Huilian Supply Chain Co., Ltd., stated at the annual meeting that products are the core of business, and Quality Yonghui will continuously strengthen cooperation with high-quality suppliers, enhancing full-chain quality control management from R&D, product selection, production to sales, co-creating more quality products to help offline stores regain customer trust.

Calling for healthy competition externally

It is worth noting that while promoting its own transformation, Yonghui Superstores also made an industry appeal externally.

On March 16, Yonghui released an open letter titled “To Sam’s Club MM,” calling for suppliers not to be forced into “two-choice,” to avoid dragging the industry into a vicious competition quagmire, and to adhere to the “six musts” for promoting healthy development: “to create better quality, to make clean formulas, to offer reasonable prices, to achieve employee success, to promote ESG, and to continue innovating.”

Internally, Yonghui continues to strengthen quality control. On the day of the annual meeting, Yonghui Superstores held two communication meetings simultaneously, inviting frontline store managers, operational coaches, and benchmark suppliers—core participants in building “Quality Yonghui”—to discuss quality management throughout the entire chain from product development to shelf sales, emphasizing that the private brand must maintain stable quality output to effectively protect consumer rights.

From a performance perspective, Yonghui Superstores’ transformation is still in a period of pain. The company’s previous announcement of expected losses for the 2025 annual performance indicated an estimated net loss of 2.14 billion yuan for 2025, a 45.6% year-on-year increase in losses; the net loss adjusted for non-recurring items is expected to be 2.94 billion yuan.

Yonghui Superstores explained that the main reason for this period’s performance loss is due to significant strategic adjustments made in 2025. In terms of store layout, the company deeply adjusted 315 stores during the reporting period and closed 381 stores that did not align with the company’s future strategic positioning; among them, the asset write-offs and one-time expenditures related to store adjustments totaled approximately 910 million yuan, with estimated gross margin losses of about 300 million yuan due to temporary closures for renovations. In terms of product strategy, the company reformed the supply chain, thus facing short-term pressures of stockouts and declining gross margins. In addition, the company conducted impairment testing on its long-term assets (mainly assets of continuously loss-making stores) and made provisions for impairment, expecting to recognize long-term asset impairments of 162 million yuan.

Author: Wang Qiaoqi

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