5,000 square meters, opening sales of 1.95 million, how did the Xiangyang Good Neighbor Wanda Store do it?

Wanda MAX store represents the development direction of Good Neighbor in the Xiangyang market.

Chairman Zhang Hongtao believes that the current retail industry has seriously lagged behind consumers, and companies need to be aggressive more than before. In a series of reports on Xiangyang Good Neighbors, Zhang Hongtao mentioned that companies that aim at service have an easier time living than companies that follow the "performance theory". Under this thinking, "upgrading service and quality" has become the iteration idea of ??Good Neighbor stores.

At the end of September 2019, Good Neighbor’s first fifth-generation store, the Wanda MAX store, opened. It is understood that the Wanda MAX store was formerly known as China Resources Vanguard. In March 2019, China Resources Vanguard announced that it would be closed due to poor management. The store is officially closed and will be taken over by Xiangyang Good Neighbors.

The vivid on-site experience and scene interaction of Xiangyang Good Neighbors are obviously different from China Resources Vanguard’s previous business philosophy.

The Good Neighbor Wanda MAX store is located on the basement floor of Wanda Plaza. It has an actual operating area of ??5,000 square meters, and the fresh food area accounts for about 50%. The active line is U-shaped, and the category layout starts with the baking area and the fruit and vegetable area. Then it connects processed daily products such as meat, aquatic products, cooked food, staple food, catering snacks, etc. In addition to traditional snacks such as spicy hotpot and cross-bridge rice noodles, Wanda MAX store introduces Xiangyang local specialty snacks, such as lean meat noodles, beef patties, etc. The 3-meter-high viewing fish tank in the food area has become a check-in point for children in the supermarket. The coffee bar and craft beer bar next to it not only create a leisure area for young people, but also cleverly integrate the large fresh food The area is separated from the food area, so that the moving line naturally turns to the other side of the U-shape. Beverages, grains, oils, seasonings, snack foods, and household and personal care products are distributed along the two ends of the moving line until they are connected to the cashier.

By segmenting customers, Wanda MAX store focuses its operations on high-value customers and meets the needs of high-value customers through scene creation and product selection. This is why the sales on the opening day can reach 1.95 million. The reason is.

Internet celebrities, imported goods and experiential services firmly connect Wanda MAX stores with high-value customers.

In recent years, under the general trend of consumption upgrading, the consumption power of second- and third-tier cities has risen. Many supermarkets have begun to increase the proportion of imported goods and new domestic products with spiritual connotations to capture the young and price-conscious consumers. The minds of the customer groups who are not very sensitive also rely on the endorsement of offline physical stores. On the one hand, consumers do not have to worry about the quality and logistics issues of the goods. On the other hand, the shopping scene created by offline stores also subtly stimulates In line with the customer's desire to purchase. It has both experience and consumption functions, which is one of the characteristics of Wanda MAX store.

Gu Guojian, a retail expert and professor at Shanghai Business School, believes that “in the process of consumption upgrading, material consumption will always reach its peak, while spiritual consumption has huge room for growth. The flat customer base in the past has evolved into a multi-level customer base. groups, the retail industry must segment customers to target its own target customers.”

While some companies are still hesitant to “catering”, the proportion of catering area in Good Neighbor MAX stores has already increased. Reaching 30, which is rare in hypermarkets of the same area.

Zhang Hongtao believes that the integration of the concept of "catering" into supermarkets will have a broad market in the future. With the acceleration of the pace of life and the shrinking of families, there are more and more young people who cannot cook or order takeout. The more finished products and semi-finished products in supermarkets can not only meet the needs of customers for quick consumption, but also be produced and sold on-site in a fresher and safer form.

Setting up a large dine-in area in a store can attract customers to a certain extent and extend the time customers stay in the store. More importantly, it drives "low-frequency categories" such as seafood Consumption, various cooking techniques and life proposal-style displays combine different categories of goods to create a "fireworks" consumption scene for customers.

Good Neighbor Wanda MAX store took over China Resources Vanguard, which is the result of "density advantage".

Last year, Xiangyang China Resources Vanguard stated in its store closing announcement: In the regional market of Xiangyang, single store operations are weak and without helpers, resulting in continuous operating losses, so it chose to withdraw from the Xiangyang market. In contrast, Xiangyang Good Neighbors has more than 70 stores in its base camp in Xiangyang since its establishment in 1999. It has stronger circulation and supply capabilities in the local market, which is difficult for foreign companies to match.

In 2000, Good Neighbor gradually moved from vegetables, fruits, and meat to self-operation. In 2014, it began to self-operate in cooked food and pasta, and in 2016, it began to self-operate in aquatic products. In this process, Xiangyang Good Neighbor has gradually increased its basic investment in fresh food sorting, deep processing, etc., and these investments have become the "moat" of Xiangyang Good Neighbor, bringing absolute advantages to Good Neighbor's development in Xiangyang.

According to reports, Xiangyang Good Neighbor has the most modern logistics and distribution center in northwest Hubei. The entire warehouse can accommodate more than 20,000 individual products. The annual output value of processed agricultural and sideline products is approximately 1 billion yuan. The annual distribution capacity Reaching 5 billion yuan, it can cover the goods distribution needs of 82 supermarkets in Xiangyang and surrounding Shiyan, Suizhou, and Wuhan. In the more than a year since the distribution center was put into use, the out-of-stock rate of best-selling products has dropped to 2 points, and the inventory turnover days have dropped to about 30 days, which is nearly a week shorter than before. At present, this distribution center is mainly responsible for the distribution of room temperature commodities. In May next year, Good Neighbor's self-built fresh food processing center will be put into use.

Zhang Hongtao said, "The current scale of Xiangyang Good Neighbor is sufficient to support the operation of heavy assets such as processing and distribution centers, and form a positive driver for the development of stores."