Study on the Influence of “New Retail” Mode on Financial Performance of Yonghui Supermarket

Abstract

In the new wave of retail industry reform, the dual challenges of constrained growth in offline physical stores and the gradual fading of online dividend have forced retail enterprises to accelerate their transformation. Both online retailers and physical supermarkets have realized that in order to maintain the company's long-term sustainable development, it is necessary to achieve a seamless connection between the company's online and physical businesses, and use the latest technologies such as big data to provide customers with targeted products and services, improve the customer shopping experience, achieve better operational results, and continuously improve performance. The inevitability of transformation is obvious, but how to integrate it into the overall work is a problem faced by most retail enterprises. As a leader in China's retail industry, Yonghui Supermarket has played a pioneering role in the new retail transformation.

This paper takes Yonghui Supermarket as a research sample and comprehensively uses literature research and case analysis methods to construct a multi-dimensional framework to evaluate the effect of new retail transformation. Firstly, the connotation of new retail theory is traced, and the core theory of enterprise performance evaluation is sorted out. Secondly, through the cross-analysis of financial indicators, non-financial indicators and economic added value (EVA) model, the transformation effect is quantitatively evaluated. Finally, the research concludes that Yonghui Supermarket's profitability fluctuated during the transformation of new retail, the expansion of brand awareness in non-financial performance fell short of expectations, and the comprehensive evaluation based on the EVA model showed that the EVA value of Yonghui Supermarket from 2018 to 2022 showed a trend of fluctuating first and then deteriorating significantly.

Through a series of analyses of the case, this paper intends to put forward several application suggestions for other companies facing transformation: first, optimize capital allocation and structure; second, deepen supply chain integration and cost control; third, differentiate online business positioning and implement precise marketing; fourth, optimize store layout and business format innovation.