According to Cailian News, the topic of "Box Horse Sam’s business war is crazy"Boarded Weibo Hot Search.. The price of durian Melaleuca cake was lowered by the warehouse member store Box Horse and Sam. It is reported that the price of durian Melaleuca cake in Sam plummeted from 128 yuan to 85 yuan, while the price of the cake with the same box horse was adjusted from 99 yuan to 79 yuan.
Just as the two giants are fighting for a piece of cake, the traditional supermarket industry is experiencing an awkward retreat. According to CCTV news, it was established in 1930 on August 10th, local time.Wilko, an old British chain retailer, declared bankruptcy.. Looking at China again, CR Vanguard and other chain supermarkets are caught in the storm of "closing stores", leading the A-share fresh supermarket.Yonghui Supermarket’s share price has fallen by nearly 80% from the highest point in history.,The stock price of RT Mart’s parent company Gaoxin retail Hong Kong stocks has fallen by more than 90% since its high point in 2020.Carrefour, one of the world’s top 500 companies, was rushed to the hot search because of "default".Wal-Mart, a supermarket giant, should have held the same script, but recently the share price of US stocks climbed to an all-time high.. Analysts pointed out that it rewrote its destiny with Sam.
The second half of commercial retail starts from membership: the share price of Wal-Mart, the parent company of Sam, hit a record high, the rise of box horse and the "zero membership fee" of Yonghui Supermarket in Sam may put pressure on the cost.
In recent years, Wal-Mart has frequently closed stores. From 2016 to 2022, Wal-Mart closed more than 130 stores in mainland China, leaving only 365 stores, butHowever, its 42 Sam stores have made great strides, pulling the average store sales of Wal-Mart to 300 million on their own.Wal-Mart’s US stock price hit a record high on Monday. According to the financial report, the net sales of Wal-Mart China in Q1 of fiscal year 2024 (from February 1 to April 30, 2023) was US$ 5.3 billion, up by 28.3% year-on-year, and the net sales of e-commerce business increased by 54%. Among them,Member’s Mark, Sam’s own brand, achieved outstanding performance and achieved 46% sales growth..
The second half of commercial retail starts in the paid membership system. Traditional Shangchao once tried to make its stores as large as possible and used tens of thousands of SKUs to please all consumers, while Sam only kept more than 4,000 SKUs. Analysts pointed out that the advantage of this is that consumers can really buy what I sell.Sam can achieve the premise that supply determines demand because it has already completed the screening of consumers through membership..
According to the research report released by Fu Rong of Guosheng Securities at the end of last year, the membership supermarket took shape in China in 1996. High-end member stores aimed at middle-and high-income people, selected high-cost products globally, reduced costs by purchasing in large quantities and operating their own brands, and realized profits through membership fee income and product price difference. According to Euromonitor consulting data,Among the mainstream offline retail formats in China, compared with four years ago, only the income of warehouse member stores maintained growth, and the growth rate was close to 20%. existIn 2022, the sales of this format in China also more than doubled from $1.8 billion four years ago., reaching $3.7 billion.
Behind running all the way is the rise of China forces represented by Box Horse. In fact,Durian Melaleuca is just the tip of the iceberg of box horse and Sam’s close combat., the two have "bayonet see red". In October, 2020, the first member store of Box Horse X opened in Shanghai, followed by Sam’s flagship store in Shanghai in 2021. On July 30 this year,Box Horse Club launched the "Mountain-moving Price" preferential activity in Shanghai.. The word "Yishan" in the name of the event is considered to be meaningful. Moreover, similar products of the same paragraph can be found in Sam for many commodities that Box Horse initiated "Yishan Price". In the industry’s view, behind the price war,It reflects the war of grabbing people by membership-based supermarkets..
Analysts pointed out that the box horse is valued by Sam because it is a new species in the retail market.Box horseback riding on Tmall, which has trillions of transactions, is subverting the entire retail system with a set of Internet gameplay that Sam may not understand and understand.The advantage of this dimension-reducing attack enables it to compete with established giants such as Sam. In addition, in June this year, Ali launched the 1+6+N reform. It is reported that,The listing of Box Horse is expected to be completed in the next 6-12 months., or it will become the first independent listed business group after the change of Ali organization.
Box horse public data shows thatIn 2022, Box Horse X member stores increased by more than 247%.The unit price of customers increased by about 30% year-on-year. It is understood that,It is estimated that six Sam member stores will be opened in China in 2023.Before the end of the year, the number of member stores in Sam increased to 48. observe from an opposite angleYonghui Supermarket, the number of stores has been decreasing year by year since it reached a peak of 1,440 in 2019.In April 1, 2019-2020, the total number of closed stores reached 349. As of February this year, the number of stores in Yonghui Supermarket has dropped to 1,029.
The paid membership system has become a new battlefield in that retail industry,Carrefour, RT Mart, Metro, Renrenle, Jiajiayue, Hualian, Yonghui Supermarket and other well-known Shangchao brands have all opened at least one warehouse member store.. But unlike the peers who raised the threshold,Yonghui directly adopts the "0 membership fee" model.In the mode of low price +0 threshold, Yonghui’s warehouse stores,It’s more like a fair-price store.. However, regarding warehouse member stores, Yonghui has not disclosed more information separately in its annual reports in recent years. Another analysis pointed out that the essence of warehousing member stores is to earn membership fees and sell low-priced goods, butWhile emphasizing low prices, Yonghui also adopts "zero membership fee", which may bring great pressure on operating costs.. Carrefour, which claims to open 100 paid membership stores within three years, is under the influence of tight capital chain.In April this year, Carrefour China successively closed two member stores, Shanghai Chengshan Road Store and Shanghai Zhongshan Park Store.Among them, Chengshan Road Store in Shanghai is the first store of Carrefour member stores.
It is worth noting that analysts pointed out that,Box Horse and Sam "fight" for a piece of cake, the essence of which is "grabbing the head" in the era of middle-class stock.According to relevant calculations, a paid member store like Sam needs 200,000-300,000 members to support a store. If calculated by urban population,Opening five member stores in a city like Beijing is likely to lead to over-saturation of the market.. This means that it is difficult for the market scale to increase greatly in the short term. butCostco, the originator of the member store, also failed to meet expectations in the third quarter of fiscal year 2023.During the reporting period, the company’s total revenue was $53.648 billion, which was lower than the market expectation of $54.66 billion. The company’s net profit was $1.302 billion, down 3.8% compared with $1.353 billion in the same period of last year.
▌ Breakthrough in the difficult transformation of traditional supermarkets: Yonghui Supermarket, the leader of A-share fresh supermarkets, and JD.COM rumored that the Internet giants embraced traffic and faced traffic struggles.
In sharp contrast to the warehouse-style member stores that are in full swing, traditional supermarkets actively "save themselves" in difficulties. In terms of performance, Yonghui Supermarket, the leader of A-share fresh specialty supermarket, announced on July 14,It is estimated that the net profit for the first half of the year will be 390 million yuan.. Behind this is the "broken wrist" price and the breakthrough of online business. For this pre-profit, Yonghui said in the performance forecast that it actively promoted the optimization of stores.Close some long-term loss-making stores,Vigorously promote digitalizationThe result of a series of measures such as comprehensive action.Another semi-annual report of Hongqi Chain, which laid out online business, also achieved growth.Its semi-annual report announced on Tuesday showed that its net profit was 257 million yuan, a year-on-year increase of 15.23%. The open source securities research report pointed out that,Hongqi chain is centered on "Hongqi Cloud", relying on offline stores and supplementing business online,Increase business cooperation with online platforms.And continue to make efforts to home business, live broadcast business, etc.
In the past two years, Yonghui Supermarket experienced a "dark moment", with losses of 3.944 billion yuan and 2.763 billion yuan in 2021 and 2022 respectively.The total loss in the two years exceeded 6.7 billion yuan, almost offsetting the profits in the four years from 2017 to 2020.. Nowadays, the transition line seems to give Yonghui hope. The data shows that,In 2022, Yonghui was still in a quagmire of losses, but its online business was "particularly stealing the mirror".Its annual online business revenue was 15.936 billion yuan, up 21.37% year-on-year, with an average daily order volume of 518,000. A quarterly report also shows that online business revenue is 4.02 billion yuan, accounting for 16.90%, and the number of registered members of Yonghui Life has exceeded 105 million.
Despite the semi-annual earnings forecast and the breakthrough in online business, the stock price performance of Yonghui Supermarket is still hovering at the bottom.Until August 1 ST, there was a "hand-in-hand scandal" with JD.COM, Yonghui SupermarketIt rose nearly 4% on the same day, and the daily limit of the next day, and the stock price "rippled at the bottom", hitting the highest point of the year. However, the company announced after-hours on the same dayAfter clarifying that there is no such thing as "JD.COM negotiates the wholly-owned acquisition of Yonghui", the stock price goes down all the way.. Looking at it for a long time,Yonghui Supermarket’s total market value once exceeded 100 billion, and now only about 30 billion is left.It has fallen by nearly 80%. The "RT Mart" supermarket, which was once spread all over cities, has its parent company-a listed company in Hong Kong stock market.Gaoxin retailBasically copied the track of Yonghui Supermarket,In 2020, the stock price briefly reached a record high and then fell all the way. So far,The cumulative maximum decline is over 90%.
In fact, JD.COM, who heard the "gossip" this time, is also one of the channels on Yonghui Online. When the news came out that "JD.COM is in contact with Yonghui for acquisition recently", some netizens commented that "this news is released once every six months, and I have seen it at least twice".As early as August 2015, JD.COM had already invested in Yonghui Supermarket.At that time, it was the "golden period" of the development of fresh e-commerce. The head platforms such as Daily Fresh, Tmall Fresh, Box Horse Fresh, and SF Express were all in the game.
Under the impact of the new retail format on the Internet, traditional supermarkets are forced to enter the transition moment and choose to "stand in line" with the Internet giant. Analysts pointed out that since 2014, Ali has successively invested in Yintai Department Store, Suning, Sanjiang Shopping and other shopping malls; In 2016, Wal-Mart and JD.COM reached a strategic cooperation, and the Sam member store officially entered the JD.COM Mall exclusively. On the whole,RT Mart and Xinhuadu joined the Ali camp.,Yonghui Supermarket, Wal-Mart and Carrefour joined the Tencent camp.. In 2017,Yonghui Supermarket launches super species, focusing on the "catering+retail" format, positioning high-quality fresh ingredients experience stores,Mark the box of Ma Xiansheng with his back to Ali.. In the same year,Tencent acquired a 5% stake in Yonghui Super Species.In the second year, Carrefour also entered the game, and the three parties joined forces to embrace online traffic.
It is worth noting that analysts pointed out that,The alliance between Shangchao and Internet giants is also facing traffic competition.. With the cooperation between the two parties, Shangchao seems to have the traffic of the e-commerce platform. In fact,It is difficult to translate into a valid order.. The supply scale and richness of a store can’t reach the millions of merchants on the whole platform after all.
Original title: Behind the "Crazy Killing" of the Sam Box Horse Business War: The total market value of Yonghui Supermarket has evaporated by nearly 80%, and the "cheap hypermarket" is no match for the paid membership system?
Editor: Deng Xi
Editor: Wu Zhonglan
Audit: Feng Fei
