Consumers are attracted by the fresh seafood and cooking service at BravoYH in Fuzhou, Fujian province. (Photo by Zheng Shuai/For China Daily)
Yonghui Superstores has proved adept at rolling out new business models to retain market share and combat the challenges thrown up by online rivals.
The traditional retail chain has nearly 500 stores, with another 200 due to be opened later this year, and employs more than 70,000 staff.
Sales topped about $7.3 billion, according to Forbes magazine, while the company's market cap came in at $8 billion. It also made Forbes' Asia's Fab 50 List of Companies in 2015.
But even Yonghui Superstores has been forced to change its approach in the face of fierce online competition.
"Consumers now have higher expectations for online-to-offline business," said Bruno Lannes, a partner at Bain & Co, the global management consulting firm, in China. "Retailers must come up with new models."
Yonghui Superstores has done just that.
Known for its massive 5,000-square-meter hypermarkets, the company launched Super Species, a smaller-sized supermarket brand, in its home city of Fuzhou in Fujian province.
The 500-square-meter stores target middle class consumers that like to combine shopping with dining.
Customers choose their favorite foods, such as salmon or prime beef, which are cooked in store. Wine is also available at the store.
With a wide range of produce, the company's plan appears to be working.
"Up to 50 Super Species stores are scheduled to be opened this year," said Lin Chuangyan, a partner at Super Species. "The ultimate goal is to introduce the consumers, who come into the store, to our online platform."
Still, these niche outlets are just the latest attempt Yonghui Superstores has made in recent years.
Back in 2015, the retailer launched its first YH Member Experience brand outlet in Shanghai. So far, they have opened more than 30. But the aim was to roll out 800 outlets in the city by 2018.
Defined as a mid-to high-level community supermarket, the branded stores covered just 200 meters, and featured fresh products and imported goods.
Consumers living within a few kilometers of these outlets could shop online with the added attraction of a delivery service.
In May, another new brand was launched by the company. YH Life first popped up in the financial hub of Shanghai with the store covering the neighbouring one square kilometer.
Just like a small convenience shop, it sells mainly cigarettes, ice-creams, semi-finished food products and fresh food. Online services are also available, including delivery.
The move has proved a hit.
