Huarun Wanjia Plans To Expand The Small Format Stores To 5000 Stores

In Huarun, Wanjia integrated Tesco's "1st anniversary" has experienced adjustment of stores.

After screening, Zheng Weixia, general manager of Huarun Wancheng Jiangsu, told reporters in an exclusive interview in June 5th that Huarun is planning to open the franchise of small format stores. In the future, Huarun plans to expand the small format stores to about 5000 in 2020.

"Huarun 10000 has many formats such as hypermarkets, high-end supermarkets, standard supermarkets, convenience stores and so on. We categorize convenience stores and Tesco Express into small format stores. At present, there are about 1500 small shops in Huarun, and our plan is to expand the small format stores to about 5000 by 2020."

Zheng Weixia told reporters.

Now that we need to accelerate the expansion of small format stores, we must change the way we operate.

Zheng Weixia disclosed that at present, the small format stores are basically direct battalion mode, and plans to open up in the future, and the joining scheme will start testing the water from the inside of Huarun Wanjia company, and try it first from East China, because at present there are sub warehouses in East China, while the small format stores have a high demand for the demolition business of warehousing and pportation, and if they can succeed, they will then be promoted to the outside world.

It is reported that Huarun's convenience store is about 100 square meters, while Tesco Express is about 500 square meters.

"Precisely because of the location of community stores.

Small format stores will emphasize more on the related functions of fresh products and service residents in the future. At the same time, they will also provide services to store and pick up goods with Huarun's suppliers. This also requires that the layout of small format stores be densely packed, which can satisfy the function of online shopping and offline pickup. Therefore, we will accelerate the expansion of small format stores in the future. We hope that in every city there can be a small shop of Huarun 10000 for every 3000 people.

Zheng Weixia revealed that at present, there are 550 Suguo convenience stores and supermarkets in Huarun, which are likely to continue to flop in order to unify brand management in the future.

"Brand".

According to the analysis of the personages in the industry, at present, the cost of rent and labor is rising rapidly, and the single store daily turnover of the convenience store has to be more than 7000 yuan to break even, while the standard supermarket has to achieve a profit and loss balance by 15 thousand yuan per day. It is difficult for many operators to achieve the above figures, and the profit pressure is huge. This is the fundamental reason why the convenience stores and other small retail formats are frequently closed.

Plus the store's goods management and distribution is more complicated, so Huarun Wanjia has to expand the small format stores still challenges.

In this regard, Zheng Weixia said that rising costs and market competition has always been there, which can be felt. Therefore, Huarun 10000 will develop these small formats to notice these problems. The new version of Tesco Express, which has already started testing, has good performance figures, exceeding expectations, and is confident that it will be a small shop in Rio Tinto in the future.