Research on Financial Performance of Chain Supermarkets During Strategic Transformation

A Case Study of Yonghui Superstores

Abstract

Over the past few years, conventional retail companies have been subjected to double pressure coming from the emergence of online e-commerce sites and community group-buying, and therefore have found themselves in the midst of a transformation cycle where stock restructuring and quality improvement have become a norm. This paper takes the strategic transformation of “quality retail” in 2024 in Yonghui Superstores, which adopts the Pangdonglai model of transformation, as an example and examines the company’s annual statements for the period 2021-2025 and Q1 2026, analyzing financial changes through the lens of profitability, solvency, efficiency, and growth potential. The results show that the transformation of Yonghui is following a “pain for short-term, little improvement” pattern, which is based on three major financial contradictions: huge expenses incurred for transformation reducing profit; high leverage and rigid debts leading to liquidity problems; and improvements in efficiency based on shutting down the stores. In order to solve these problems, this study will offer actionable strategies in three major areas: upgrading proprietary supply chain brands, optimizing capital structure, and improving the operations of existing retail outlets. These suggestions seek to assist Yonghui in dealing with the financial risks arising from its transformation process and improve its operational efficiency, providing an empirical benchmark in the process for assessing such transformations from the financial perspective.