The retail sector plays a significant role in boosting consumption and investment. On the morning of December 10, Yonghui Superstores (601933) opened with a limit-up and maintained over 4 million buy orders by midday, with funds exceeding 2.1 billion yuan. Regarding the stock price movement, Yonghui stated that its production and operations remain normal, with steady progress in store adjustments. No major undisclosed changes in internal or external conditions were reported.
The commercial department store sector surged in early trading, with nearly 10 stocks, including Dongbai Group, Yonghui Superstores, Central Department Store, Macrolink, and Maoye Commercial, hitting the limit-up. Others like Zhongbai Group, Tianhong Holdings, and Guofang Group also posted significant gains. Notably, Dongbai Group achieved four consecutive limit-ups, while Yonghui Superstores secured its third.
The rally follows the National Retail Industry Innovation and Development Conference held in Beijing on December 9–10. Vice Minister of Commerce Sheng Qiuping emphasized that during the "15th Five-Year Plan" period, retail will be a key driver in strengthening domestic demand and circulation, shifting toward quality- and service-driven growth. Sheng highlighted the need to learn from successful models like Pang Donglai, accelerate transformation, and focus on lower-tier markets with new formats and scenarios to unlock consumption potential. He also urged deeper integration between online and offline retail through mutual traffic, complementary experiences, data sharing, and supply chain collaboration.
**A Pillar of Domestic Circulation** Retail serves as a core vehicle for domestic consumption, fueling demand through innovation, optimized structures, and supply-demand alignment. It is a vital support for the domestic economic cycle. The "15th Five-Year Plan" proposal stresses expanding domestic demand as a strategic focus, linking consumption and investment to generate new supply and demand.
This year, policies have actively promoted retail growth. Key measures include: - February: A three-year action plan to optimize the consumption environment, covering supply, market order, and consumer rights. - March: Policies to foster international consumption hubs in cities like Beijing and Shanghai. - November: Duty-free shop reforms to boost retail via expanded product categories and streamlined approvals.
Data shows retail’s substantial impact. In 2024, total retail sales grew 3.5% YoY. For Q1–Q3 2025, convenience stores, supermarkets, and department stores saw sales rise 6.4%, 4.4%, and 0.9%, respectively.
Orient Securities predicts the 2026 Spring Festival, coinciding with Valentine’s Day, could create a 10-day consumption peak, benefiting offline retailers. Cities like Urumqi and Chongqing may see tourism-driven retail spikes.
**Sector’s Underperformance** Despite the rally, the A-share retail sector has lagged this year. As of December 9, the SW Commercial Retail Index rose just 4.85%, trailing major indices. Leaders like Yonghui and Supply Chain Integration Group fell over 25%, while sector median gains stayed below 4%.
Per DataYes, 15 retail stocks have ratings from two or more analysts. Small Commodities City, Yonghui, and Chongqing Department Store are top picks, with over 10 analyst ratings. Small Commodities City, surveyed by 350+ institutions, is expanding high-value imports like cosmetics under trade reforms, targeting 300 billion yuan in import trade by 2030.
Yonghui, adopting Pang Donglai’s supply chain since May 2024, accelerated store upgrades in Q3. Shanxi Securities notes improved sales per store and faster loss-cutting efforts, signaling strong earnings potential.
Other heavily researched firms include Huijia Times, Agricultural Products, and Macrolink, with over 50 institutional surveys each.
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