A Case Study On Financial Strategy Of Yonghui Supemarket Under New Retailing Business Format

With the development of the economy and the popularity of the Internet,the offline business of the retail industry has been under great pressure.Later,the outbreak of the novel coronavirus and the normalization of epidemic prevention and control have also brought certain challenges to the offline stores of the retail industry.Yonghui Supermarket began to develop towards the business model of new retail formats,focusing on the integration of supply chains,the construction of high-quality supermarket formats,the construction of logistics centers and the construction of scientific and technological systems.However,in recent years,many stores of Yonghui supermarket lost money,and its market value evaporated.Its stock has fallen for six consecutive quarters.The exploration of new retail formats of Yonghui supermarket has certain risks,which is worthy of in-depth study from the perspective of financial strategy.This paper uses literature research method,case study method,quantitative analysis and qualitative analysis method to study the new retail formats of Yonghui supermarket from the perspective of financial strategy.First of all,through the study of the literature,we know that the new retail business is developed based on the network technology,and the financial strategy is of great significance to the development of the new retail business.Secondly,it takes Yonghui Supermarket as the case to analyze the financial strategy under the new retail format.In the investment strategy,Yonghui supermarket invests in its subsidiaries and other enterprises in the supply chain,and attaches importance to the integration of supply chain,the construction of high-quality supermarket formats and the construction of logistics center.In the financing strategy,in addition to equity financing and short-term loans,Yonghui supermarket ensures its own capital needs through supply chain financing;In the working capital management strategy,the purchasing,inventory distribution and sales links should be managed scientifically and effectively.Finally,it evaluates the effect of financial strategy under the new retail format of Yonghui supermarket,and draws inspiration and puts forward suggestions according to the achievements and risks of Yonghui supermarket.Finally,through the study of this paper,the conclusion is drawn that Yonghui supermarket’s active exploration of the transformation of new retail formats conforms to the needs of the development of The Times.At the same time,the financial strategy of Yonghui supermarket under the new retail formats supports the enterprise strategy,and it performs well in the construction of logistics center,inventory distribution management,inventory management and fund recovery.However,the investment effect in the supply chain is not ideal,the blind expansion of stores serious losses,debt repayment ability decline,enterprises should pay attention to these risks.It is hoped that the case study of financial strategy under the new retail format of Yonghui supermarket can provide some references for other retail enterprises,so that the retail industry can prosper and develop.