Yonghui Superstores Co.,Ltd. (601933) will shut down two of its stores in Shenzhen on November 16, according to an announcement posted at the locations.
The affected stores, located in Luohu's Sun Plaza and Nanshan's Raffles City, confirmed the closures through on-site notices. Customers holding gift cards or membership points can continue using them until the shutdown date, with remaining balances redeemable at other Yonghui outlets nationwide.
At the Luohu Sun Plaza branch, clearance sales banners advertising discounts of up to 50% were prominently displayed. Staff clarified that the store would cease operations permanently due to poor performance, with no plans for restructuring.
The closure notice acknowledged operational shortcomings: "Our previous business philosophy and management experience were immature, failing to deliver quality products, a comfortable shopping environment, or satisfactory service to customers. We also fell short in providing employees with adequate platforms and benefits."
On October 30, Yonghui reported a Q3 2025 revenue of 42.43 billion yuan, down 22.21% year-on-year, with net losses widening to 710 million yuan—an 80% plunge from 2024. The company attributed the decline to intensified retail competition, reduced foot traffic, and lower average spending, alongside margin compression during merchandise and procurement restructuring.
Newly appointed CEO Wang Shoucheng, who heads the nationwide restructuring initiative, stated at a recent press conference: "Since launching reforms on May 6, 2024, Yonghui aims to overcome critical challenges within 2–3 years and regain customer trust within 3–5 years."
As of Q3 2025, Yonghui operates 450 stores nationwide, with 222 locations undergoing restructuring since adopting a "quality retail" strategy inspired by Pang Donglai's model in May 2024.
Shares of Yonghui Superstores dipped 0.85% to 4.64 yuan by midday on November 4, valuing the company at 42.11 billion yuan.
Comments