Research On The Cash Flow Risk Management Of Yonghui Supermarket’s Transformation Into A New Retail Model

With the wide popularization of mobile Internet,the growth of the number of network users has slowed down or even stagnated.Traditional physical retail enterprises and e-commerce retail enterprises began to seek transformation and upgrading,so the concept of "New retail" emerged.On November 11,2016,the government provided policy support for the innovation and transformation of traditional retail enterprises.However,the new retail model needs the traditional retail enterprises to invest a lot of money in scale expansion,system development and platform construction,which may lead to the shortage of capital supply.Therefore,the author thinks it is necessary to study the cash flow risk of the transformation of the traditional retail enterprises into the new retail model.It is generally accepted in academic circles to study the cash flow risk management from the perspective of value chain,because cash is the carrier of corporate value circulation,and the fracture of cash flow may cause the suspension of corporate value creation activities.Based on the above analysis,this paper studies the enterprise’s cash flow risk from the perspective of internal and external value chain to help the traditional retail enterprises in transition manage the cash flow risk.This paper uses the methods of literature research,case analysis,ratio analysis and comparative analysis,selects Yonghui Supermarket,a representative enterprise of the new retail model,as a case study enterprise,and analyzes the cash flow risk management of Yonghui Supermarket with the combination of risk management theory and value chain theory.First of all,this paper reviews the concepts and theories related to the new retail model,cash flow risk and value chain,and introduces the relevant research literature.Secondly,from the perspective of internal and external value chain,the paper identifies the factors that may increase the cash flow risk in Yonghui’s transformation.Thirdly,this paper establishes the cash flow risk assessment index system,and evaluate the cash flow risk with AHP.Finally,from the perspective of internal and external value chain,this paper analyzes the measures taken by Yonghui Supermarket to manage the cash flow risk in the transformation of new retail model.There are two innovations in this paper.Firstly,the research content is innovative.Most scholars have studied the business model,supply chain or the problems existing in the transformation of new retail.But the research on cash flow risk management of the transformation of new retail model is insufficient.Secondly,the research method is innovative.When establishing the cash flow risk assessment index system,this paper makes innovations on the basis of predecessors’ research content.Through the case study of Yonghui Supermarket,this paper draws the following conclusions:(1)The new retail model transformation of Yonghui Supermarket increases the cash flow risk in operating activities and investment activities,but does not significantly affect the cash flow risk in financing activities.(2)The new retail model transformation of Yonghui Supermarket has no significant impact on the liquidity and debt-paying of cash flow;cash flow profitability is decreasing and lower than the industry average;cash flow growth decreases but it is expected to improve significantly in the later period.(3)During Yonghui Supermarket’s new retail model transformation,the control measures of cash flow risk are reasonable and effective.But there are still optimization methods in the aspects of procurement,logistics and transportation,technology application and financing activities.Based on this,this paper puts forward four optimization suggestions,hoping to improve the level of cash flow risk management of Yonghui Supermarket,and provide help for other retail enterprises in the new retail model transformation.