Retail Weekly Roundup: Yonghui Cuts Losses, Hema Enters Chengdu, Wumart Joins the Fray—Discount Retailers Flood the Market

2026.07.21 — 07.27 · Supermarket Retail Weekly Report

This week has been quite lively in the retail world.

Yonghui released its semi-annual report: it's no longer losing money, but a closer look at the numbers suggests things aren't as rosy as they seem. Hema Super opened 6 new stores in Chengdu in a single day, while Wumart unveiled its new "Wumart+" brand in Beijing on the same day. ALDI expanded into Anhui without delay. Pupu Supermarket pivoted hard—dropping fresh produce to launch hot pot restaurants. Walmart is aggressively pushing its private label line toward "food and medicine sharing the same origin." Meanwhile, following the致癌 controversy over Entenmann's strawberries, Sam's Club, Hema, and Yonghui all removed the product from shelves.

Let's go one by one.

I. Yonghui's Half-Year Report: Profit of 2.5 Billion, But Hold Your Applause

Mid-month of 7, Yonghui Superstores released its semi-annual earnings forecast for 2026: net profit attributable to the parent company is expected to be approximately 2.5 billion yuan, marking a turnaround from loss to profit year-over-year.

Sounds like good news, right? But dig into the data—it's not that simple.

Yonghui's boldest move in the first half wasn't just about making money—it was about cutting itself: completing renovations at 331 stores to emulate Pang Dong Lai, while closing nearly 400 underperforming, loss-making locations. Gross margin did improve, rising 1.6 percentage points year over year to 21.4%, and expense ratio dropped by 1.8 percentage points.

However, the company's core business posted an actual loss of approximately 3700 million in Q2. Nearly 8900 million of the reported profit came from fair value changes in U.S. stock investments. In short, profits were driven by investment gains, not by product sales.

Hongqi Chain performed much more steadily in the same period—revenue dipped slightly while non-GAAP net profit rose nearly 8%, driven by a high community store density of over 1400 locations across Sichuan and gross margins exceeding 30%. In contrast, Zhongbai Group continued to lose money, with a projected loss for the first half reaching up to 3.31 billion yuan; closing 414 stores failed to stem the losses.

Those who dare to operate are recovering; those who hold their ground are earning; those who refuse to change are exiting.According to "21 Economic Observer"Over the past two years, more than 1200 hypermarkets exceeding 500 square meters have closed nationwide as the one-stop hypermarket model undergoes physical consolidation.

2. Ma Chao Box and NB enter Chengdu, 6 stores open simultaneously to capture Southwest China

On 7 24, Hema's hard-discount community supermarket, "Super Box NB," officially entered Southwest China. The first 6 stores opened simultaneously in Chenghua District, Pidu District, High-tech Zone, and Chongzhou City of Chengdu.

This is another regional milestone for SuperBox NB, following our expansions in East and North China. To date, we have opened over 550 stores nationwide.

These 6 Chengdu stores are quite interesting—all street-level units, not the typical basement locations in large shopping malls where Hema Fresh usually sets up. Store sizes range from 600 to 800 sqm, with around 1500 SKUs and private label products making up nearly 60% of the assortment. They open at 5:30 AM, positioning themselves as a "buy-it-downstairs" community convenience model.

Pricing: 950 ml fresh milk for 6.9, 30 fresh eggs for 15.9, and 24 bottles of purified water for 9.9—30% to 40% lower than traditional supermarkets. As our first entry into Sichuan, 30% to 40% of our products are local Chengdu specialties, including Fufu beef, Bobo chicken, and Leshan sweet duck, all available in the ready-to-eat section.

Hema's strategy is clear: Hema Fresh targets urban transit hubs, with one store serving each district; Super Boxuan NB mimics bus stops, focusing on grid density for immediate accessibility.According to Sichuan NewsHard-discount community supermarkets, dubbed "the vegetable market young people love," are gaining momentum in this hot sector.

III. Wumei Opens Its First Beijing Store: Another Major Player Enters the Discount Arena

On the same day, 7 24, Wumart launched its new business format "Wumart+" in Maodian, Beijing. The 2000-square-meter store saw long queues forming before 3 a.m. on opening day.

This store was formerly a long-standing Wumart supermarket serving the local community. After closing for renovation, it has rebranded as "Wumart+"—focusing on private-label products and everyday discounts. Over 50% of its assortment is private label, sourced directly from farms and factories to eliminate middlemen and deliver low prices every day.

Unlike "Wumei Super Value" (a 800-sq-ft hard-discount format launched by Wumei last year, with 23 stores already open), "Wumei+" features a larger footprint and a broader product assortment, resembling a hybrid of Wumei Super Value and Wumei's AI-driven new-quality retail stores.According to China Business NewsWumei stated it will continue to open new stores, though no fixed target has been set.

The hard-discount sector is now saturated: Chaohe Suan NB has surpassed 550 stores, ALDI has broken through 100, Happy Monkey exceeds 40, and JD Discount Supermarket is also scaling up. With Wumei+ entering the fray, this赛道 has officially shifted from a "trend" to a "main battlefield."

IV. ALDI Makes Debut in Anhui: Three Stores Launch Simultaneously in Hefei and Wuhu

ALDI made waves this week with its first entry into Anhui Province. The brand opened its inaugural store at Hefei Binhu Fangyuanhui, while also signing agreements for locations at Wuhu Intime City and Parkson. With moves in both Hefei and Wuhu, ALDI is advancing across the city duo.

Hefei's first-phase plan includes 5 stores, covering the five core areas of Binhu, Shushan, Feixi, Yaohai, and Luyang. Two additional stores in Wuhu are expected to open by year-end. On 6/24, Aeon Mall Commercial Management (Hefei) Co., Ltd. was registered with a paid-in capital of 1000 million RMB, wholly owned (100%) by Aeon China.

Entered Shanghai in 2019, spent six years refining the model, then expanded to Jiangsu in 2025, followed by a move into Anhui in 2026. ALDI's growth strategy is deliberate: perfect the concept before scaling, and never advance without preparation. With over 100 stores now open, the company plans to add more than 50 locations this year, bringing the total to exceed 150 by year-end.

Auchan has completed its core layout across the Yangtze River Delta by expanding from Shanghai to Jiangsu and Anhui.According to Retail CircleALDI's core strategy is "great quality at low prices." With a streamlined, manageable SKU count per store and private labels accounting for over 90% of offerings, the brand eliminates middleman markups.

5. Pupu Supermarket Expands into Hot Pot Dining: From Grocery Delivery to In-Store Dining

The biggest surprise this week: Pupu Supermarket opened a hot pot restaurant.

On 7 24, Pupu's "Nian Shanhai · Pupu's Self-Selected Hot Pot" began trial operations at Fuzhou Ledigang. The 2000-sqm store offers over 300 menu items in a one-person-one-pot self-service format, with an entry price of 1.9 yuan and an average spend of approximately 100 yuan per person.

This isn't a team built from scratch by Pupu. The original "Nian Shan Hai · Beef & Seafood Hotpot Buffet" 2024 opened at Le Di Port and has earned strong reviews. In 3, Pupu took a 75% controlling stake, providing its supply chain and online traffic while the original team continues operations. This approach differs fundamentally from Hema's model of building an in-house restaurant team—Pupu acquires a proven system through capital, bypassing the inherent conflict between retail and F&B DNA.

PuPu's logic is straightforward: with over 400 forward warehouses in Fujian, it sources fresh produce directly from farms and delivers via cold chain straight to hot pot kitchens. Traditional hot pot restaurants typically see food costs at 41%, but PuPu's centralized procurement drives this even lower while keeping spoilage under 8%. Even better, near-expiry items from the supermarket can be diverted to the hot pot section—same inventory, two sales channels.According to Beijing Business TodayPupu is taking a strategic step from instant retail to in-store experiences—a move worth watching.

6. Walmart's Woxi Fresh Launches "Medicine and Food Share the Same Origin," a New Retail Strategy for the 3700 Billion Market

Walmart's private brand, Sam's Choice, did something innovative this week by officially launching its "Medicinal Food" series.

Partnering with a century-old Chinese heritage brand, we've developed seven classic formulas rooted in time-honored recipes—including Si Shen Fu Shi Fang, Ren Shen Huang Qi Fang, and E Jiao Wu Hong Fang. These will launch across beverages, baked goods, snacks, and dairy categories, with over 100 products rolling out gradually.

This market is substantial. In 2025, China's medicine-food homology terminal market size surpassed 3700 billion yuan, with online industry growth reaching 28.9%. On Xiaohongshu, wellness posts have exceeded 10 million, and brewing goji berries in thermos flasks has become a daily routine for young people.

Wojixian's approach differs from market trends that rely on superficial additives. We focus on authenticity and traceability: every product is rooted in a well-documented traditional formula. For instance, our Jujube Kernel Walnut Cake contains at least 13% millet flour, and each bottle of Poria & Coix Milk includes over 10.5 grams of Poria-Coix paste.According to Shangtu reportsWalmart's core strategy is "Freshness through Simplicity, Expertise with Balance." We focus on everyday groceries, not health supplements.

Hema, Sam's Club, and Pang Dong Lai are all entering the "medicinal food" market. However, Walmart's deep supply chain and quality control system built through partnerships with time-honored brands have taken a distinctly different path.

7. Blueberry PFAS Controversy: Strawberry Recall Sparks Supermarket Pullout

The most talked-about food safety story this week—no question about it.

Driscoll's, a leading U.S. berry brand, was found to contain PFAS (per- and polyfluoroalkyl substances), known as "forever chemicals," with some components classified as carcinogens by the World Health Organization. 6 consumers in the U.S. have filed a class-action lawsuit. Major retailers in China responded quickly: Sam's Club and Ole' immediately removed all Driscoll's products from shelves, while Hema, Yonghui, and Costco marked items as "restocking" and paused sales.

Blueberry China issues urgent response: US and Chinese supply chains are independent. Products from China originate in Yunnan, meet national standards, and have passed 361 pesticide residue tests. However, as of 7/23, Blueberry raspberries remain on sale at Hangzhou Sam's Club. Sam's Club customer service stated the issue has been reported to relevant authorities.

The real story here goes beyond food safety itself. Consumers' reactions are genuine—they won't just accept "compliant" as reassurance. Now they're asking: Which farm grew this? What inputs were used? Who conducted the testing? Where can I see the test report?According to Hubei DailyThis incident highlights consumers' growing demand for transparency in food safety—the label "qualified" is no longer enough.

Final Thoughts

This week's news was packed. Yonghui has stopped the bleeding but isn't fully recovered yet; Hema and Wumart both doubled down on the discount channel on the same day, ALDI continued expanding into new cities, Pupu ventured into food service, Walmart extended its private label line toward healthier options, and another food safety incident served as a stark reminder for everyone.

Viewed together, these events reveal a clear trend: the retail industry is shifting from "bigger wins" to "efficiency and customer insight determine survival." Hypermarkets are physically shrinking, hard discounters are accelerating their expansion, and private labels have become the core engine for all players. In the second half of 2026, this efficiency war will only intensify.

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