Wumart recorded total revenue of approximately RMB10bn (USD mn), up 9.2% over the corresponding period of 2013. The steady growth in revenue was mainly attributable to sales growth driven by newly opened stores, increase in rental income and growth in comparable store sales. Comparable store sales growth rate was 0.9%, a decrease of 2.9% points as compared to H1 2013, which was mainly attributable to the slowdown in growth of the domestic economy and the impact of ecommerce.
Expanding retail network
As at 30 June 2014, the company had a retail network of 545 stores (30 June 2013: 541 stores) comprising 160 superstores and 385 mini-marts, occupying an aggregate saleable area of approximately 844,760 square metres (30 June 2013: 777,167 square metres)
Fresh as core competence
Both the sales and consolidated gross profit of fresh products continued to achieve double-digit growth, as a result of increasing direct sourcing and enhancing farm-retailer link, optimizing the procurement approaches of fruits, vegetables and meat. Efforts were also made to upgrade distribution technology for cold chain and seafood and reduce the shrinkage rate.
Enhancing competitiveness of merchandises
Wumart carried out store-level analysis on commercial circle, consumer needs and display resources, and allocated merchandises accordingly, so as to raise efficiency of individual items. It also attracted brand suppliers through consignment approach. To address the trend of consumption upgrade, the Group increased direct purchase of imported merchandises, providing products with good quality at competitive price.
Improving shopper loyalty via social media
Wumart launched Wechat public platforms “Wumart Stores” and “Wumart Membership”. “Wumart Stores” mainly provides the information of latest store promotions, coupons, new products and brands. Through “Wumart Membership”, customers can apply for and bundle with membership cards, inquire redemption points and balances of e-wallets and prepaid cards, receive exclusive services tailored for members. Sales to members accounted for approximately 67%.