Chinese Grocers Averted Department Stores', Malls' Nosedives Amid Covid-19
Le Yan
DATE:  May 21 2020
/ SOURCE:  Yicai
Chinese Grocers Averted Department Stores', Malls' Nosedives Amid Covid-19 Chinese Grocers Averted Department Stores', Malls' Nosedives Amid Covid-19

(Yicai Global) May 21 -- Chinese grocery stores have by and large managed to avoid the awful lull that department stores and malls have endured during the first quarter due to the Covid-19 epidemic by offering digital services such as home delivery.

Nearly 10 supermarket operators even turned a profit during the virus-hit quarter, according to Yicai Global's incomplete statistics. Many retailers said that they need to focus on integrating online and offline services in the future.

Yuyuan Tourist Mart has developed its online business because of the virus and achieved nearly CNY10 million (USD1.4 million) in sales via live-steaming and one-to-one member services since the outbreaks started, Huang Zhen, president at the Shanghai-headquartered conglomerate, told Yicai Global.

Live-streaming will also become a part of Bailian Group's normal business in the future amid its digital transformation, said Pu Jingbo, the department store firm's vice president.

Some business growth was attributable to home delivery options. Fujian province-based supermarket firm Yonghui Group achieved CNY1.6 billion (USD225.6 million) in net profit in the first quarter, up 39 percent, partly driven by a two-fold sales increase in home delivery.

Meanwhile, Sichuan province-based supermarket operator Hongqi Chain boosted its net profit by 81 percent to CNY143 million.

Pretty much all domestic department store and shopping mall operators have lost money in the same quarter while sellers have been pushed to move online, according to data from retailers.

Hubei province’s Wuhan Department Store Group lost CNY225 million (USD31.7 million) over the three months after posting a net profit of CNY295 million a year earlier. Beijing-based department store firm Wangfujiang Group lost CNY202 million and Hangzhou-based Jiebai Group CNY52,300 (USD7,372).

Editor: Emmi Laine

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Keywords:   Retail,Department stores,Supermarkets,China,Covid-19