Extremely high expansion costs are difficult to load. Yonghui Supermarket 1000 store plan “strands”

On November 14th, a few days ago, Yonghui Supermarket responded to investors’ questions on the interactive platform and said that it is difficult to complete the store opening plan of Yonghui Life Store. The company needs to adjust according to the dynamic environment.

Subsequently, the relevant person in charge of the Yonghui Supermarket Securities Department said in an interview that Yonghui Life has opened more than 400 stores so far. From the timetable, there are great pressures to start the first 1,000 stores, and the super species The store opening plan will also be adjusted from 100 stores opened during the year to a total of 100 stores.

According to the “Electronic Business Daily”, Yonghui Supermarket said in its 2017 annual business plan that it plans to open a new store: 135 Bravo stores, 100 super species, and 1000 Yonghui life stores. As of Yonghui Supermarket’s semi-annual report data, Yonghui lived until June 2018, and the national layout reached 285 in 10 cities. The super-species reached a total of 46 cities in 10 cities in June 2018. According to the data of Yonghui Supermarket’s third quarterly report, Yonghui opened a total of 172 stores in the third quarter of this year. Among them, there are 25 green label stores, 137 Yonghui life stores, and 10 super species. Judging from these data, the expansion speed of Yonghui Supermarket has been very fast, but it is really difficult for Yonghui Supermarket to complete the “Thousand Stores Plan” this year.

According to public information, in November 2015, Yonghui Life’s first store opened in Shanghai; in 2016, Yonghui Supermarket opened 80 new stores; 2017 annual report showed that Yonghui lived in 173 stores that year, and by the end of 2017, the national layout reached 10 cities. 200 stores. Now, 172 stores opened in 3 months, and the momentum is very fast. However, this rapid expansion has led to the income growth of Yonghui Supermarket and the continuous decline in net profit. The adjustment of the store plan may be a helpless solution to this situation.

In fact, before March 2018, Yonghui Supermarket’s operating income and net profit were positive, but since March, Yonghui’s operating income is still growing, and its net profit has suddenly declined. The third quarter financial report showed that as of September 30, the company’s operating income was 52.692 billion yuan, an increase of 21.67% year-on-year, and a quarter-on-quarter increase of 15.05%. The net profit was only 1.018 billion yuan, a year-on-year increase of -26.90%, and a quarter-on-quarter growth of -54.55%. This is also a continuation of the second quarter contrast. According to the semi-annual report, as of June 30, the company’s operating income was 34.397 billion yuan, a year-on-year increase of 21.47%, a quarter-on-quarter growth of -16.72%, but the net profit was only 933 million yuan, an increase of -11.54%, a quarter-on-quarter growth of -75.18%. .

Yonghui Supermarket once said that revenue growth was benefited from the rapid expansion of stores and the improvement of the same store, while the decline in profits was affected by equity incentives, store opening costs and interest income. According to the financial report, Yonghui’s sales expenses in the third quarter increased by 40.37% year-on-year, mainly due to the increase in the cost of newly opened stores. In fact, from the 200 at the beginning of the year to more than 400 now, the expansion cost can be imagined. Yonghui Supermarket has to face a series of problems such as the substantial increase in financial expenses, the loss of new store cultivation period, the decline in performance and net profit.

At present, the traditional retail industry is getting more and more difficult. Due to the impact of E-Commerce and rising financial costs, the hypermarket supermarket model has also taken its declining trend. Whether it is Yonghui Life or Super Species, it is still offline store, Yonghui Supermarket. It is really necessary to slow down to solve some practical problems, such as adjusting the store plan, standardizing the use of funds, accelerating online and offline integration, etc., in order to better meet the challenges in the future.