On April 29, Better Life Commercial Chain Share Co.Ltd(002251) disclosed the annual report of 2021. During the reporting period, the company achieved an operating income of 13.256 billion yuan and a loss of 187 million yuan. It is worth mentioning that the company has been deeply engaged in digital transformation. By the end of 2021, Better Life Commercial Chain Share Co.Ltd(002251) digital members had reached 30.89 million, and there were 6.1 million new customers during the year.
The first quarter report of 2022 disclosed on the same day showed that Better Life Commercial Chain Share Co.Ltd(002251) made a profit of 28.06 million yuan in the first quarter, turning losses into profits month on month.
Better Life Commercial Chain Share Co.Ltd(002251) said that in 2021, due to the impact of weak consumption, increased competitive pressure, rising rigid costs, the implementation of new leasing standards in the retail industry and community group purchase, the company’s operation was under great pressure and its net profit suffered a loss.
During the reporting period, Better Life Commercial Chain Share Co.Ltd(002251) took various measures to improve business efficiency and competitiveness and seek high-quality development.
In terms of stores, while 25 new stores were added during the year, Better Life Commercial Chain Share Co.Ltd(002251) closed 52 stores that were hopeless to turn losses around or the property could not be renewed. The company also formulated a new principle of opening stores based on the partner model, which is intended to ensure that new stores can quickly enter the profit period through the joint efforts of the company and the management team.
In addition, Better Life Commercial Chain Share Co.Ltd(002251) defines the new strategy and business direction, reconstructs the supermarket business form from the three directions of “goods, field and people”, comprehensively upgrades the commodity portfolio of stores, the shopping environment and the application of smart retail related technologies, makes physical stores more attractive and weakens the impact of the external environment.
In terms of commodities, Better Life Commercial Chain Share Co.Ltd(002251) by building a differentiated supply chain and guided by the shopping needs of young customer groups and medium and high-end customer groups, has selected a number of high-value, cost-effective and hot commodities. The company introduced 9269 effective new products throughout the year, and achieved a commodity renewal rate of 30% – 50% in 26 reform model stores in Hunan.
In terms of shopping environment, Better Life Commercial Chain Share Co.Ltd(002251) selected 38 core stores for proofing, and used high-cost and high-value goods to create a display pile with visual beauty and impact, so as to attract more young customers to shop in the stores.
In terms of smart retail, Better Life Commercial Chain Share Co.Ltd(002251) leveraging the cooperation and empowerment of Tencent and jd.com, expanding online business through self-supporting small programs and third-party distribution platforms, continued to promote the company’s Wuxi Online Offline Communication Information Technology Co.Ltd(300959) full coverage strategy, and further implemented the digitization and online of the whole process of store operation process to optimize store operation efficiency.
By the end of 2021, Better Life Commercial Chain Share Co.Ltd(002251) digital members had reached 30.89 million, and 6.1 million new customers were registered during the year; Online transactions amounted to 1.88 billion yuan, and the dynamic sales rate of digital members reached 60%; The supermarket launched 371 better shopping app stores, 369 self-service cashier stores, 371 home stores, 353 community stores and 20873 communities.
Better Life Commercial Chain Share Co.Ltd(002251) said that in 2022, we will focus on endogenous growth, seek progress while maintaining stability, seek high-quality development inward, and achieve symbiosis and win-win results outward. While strengthening its operation, the company did a good job in epidemic prevention and control, actively built a competitive supply chain, refined operation stores, steadily promoted digital construction, and made every effort to promote the steady development of the company.
