Core Viewpoint - The article discusses the struggles of Yonghui Supermarket, highlighting its rapid expansion and subsequent financial difficulties in the face of rising e-commerce competition. Group 1: Financial Performance - Yonghui Supermarket has faced significant losses, with over 10 billion yuan in losses over five years, and an expected loss of 2.14 billion yuan in 2025, which is a 45.6% increase from the previous year [8][10] - As of September 2025, Yonghui's cash reserves dropped to 3.358 billion yuan, the lowest in a decade, with liabilities exceeding current assets by 6.597 billion yuan, resulting in a debt ratio of 88.96% [10] - The company initially planned to raise 3.992 billion yuan for emergency funding but had to reduce it to 3.114 billion yuan, indicating severe cash flow issues [12] Group 2: Operational Challenges - Yonghui's rapid expansion led to a lack of supply chain management and operational efficiency, resulting in a significant decline in customer traffic as consumers shifted to online shopping [6][8] - The company has closed 381 unprofitable stores and restructured 315 others, with 70% of the restructuring completed by Q3 2025 [16] - Despite efforts to enhance its product offerings and customer services, the transition has resulted in over 1.8 billion yuan in losses due to asset write-offs and employee compensation [18] Group 3: Strategic Direction - Yonghui's transformation strategy has been criticized for being reactive rather than proactive, failing to address its supply chain weaknesses and customer loyalty issues [22] - The new CEO, Wang Shoucheng, is tasked with completing the transformation by the end of 2026, but the outcome remains uncertain [24] - The article suggests that Yonghui must identify its weaknesses and balance transformation speed with cost management to survive in a highly competitive market [28]