People queue at Yonghui's first revamped store in Chongqing on November 15 before opening hours. (Photo/Zhang Chunxiao)

Chongqing - Taking a page from Pangdonglai's playbook, Yonghui's first revamped store in Chongqing, following the renovation of a dozen stores across the country, reopened on Friday to overwhelming popularity.

The data from Yonghui showed that in the first three days, the newly renovated supermarket saw over 180,000 visits and 48,000 purchases. Total sales reached 5.13 million yuan ($709,678), marking a year-on-year increase of over 500 percent.

Due to the overwhelming customer flow, the supermarket had to implement daily crowd control, with lines forming before opening hours.

Pangdonglai has gained national fame for its exceptional customer service and employee benefits, such as the 10-day "unhappy leave," to help employees achieve a better work-life balance. This success comes despite operating only 13 stores in Xuchang and Xinxiang, two fourth-tier cities in Henan province.

"I'm here for Pangdonglai's craft beer and other popular products, as well as the freshly made baked goods," a customer, surnamed Wang, said on Sunday.

Another customer, surnamed Liu, valued the store's service. "The service details here are excellent, like the tips on selecting hairy crabs and other seafood, as well as seafood recipes. They solved my problem of not knowing how to choose and cook seafood," Liu said, adding that such service is very thoughtful.

"The revamped store has undergone significant changes in both products and services," a representative from Yonghui.

In terms of products, the store removed 10,685 items, a 71.8 percent reduction, while reorganizing 12,545 items and adding 7,527 new products, accounting for 60 percent of the store's offerings. The new product structure now mirrors over 80 percent of Pangdonglai's model.

Additionally, the store features sections for local specialty products, Yonghui's premium selection, Pang Donglai's brand, fresh produce, and a baking zone. New concepts such as freshly made and sold products and open kitchens have been introduced, with Yonghui now self-operating all products.

From a service perspective, many small details stand out. For example, magnifying glasses are provided next to shelves for elderly customers, disposable gloves are available by the fresh produce refrigerators, and various menus and tips for selecting fresh items are available in the fresh food section. The store also offers microwave heating services and has added customer rest areas, a nursing room, and a pet zone, among other thoughtful touches.

Mo Yuanming, a researcher at the Chengdu-Chongqing Economic Circle Collaborative Development Center of Chongqing Technology and Business University, attributed the popularity of Chongqing's renovated store to three factors.

Firstly, the economic situation has gradually improved under policy incentives, leading to a recovery in consumer spending. Secondly, as the first store in Chongqing to adopt the Pangdonglai model, the influence of the Pangdonglai brand attracted many curious consumers. Thirdly, the revamp improved product quality and service, meeting the diverse shopping needs of consumers, Mo said.

Yonghui's first revamped store in Chongqing reopened on November 15 to overwhelming popularity. (Photo/Zhang Chunxiao)

Can these Pangdonglai-inspired stores sustain long-term success

In recent years, with the rise of online shopping, community group buying, and same-city delivery, the retail industry has undergone a significant transformation, placing traditional supermarkets under increasing pressure.

Additionally, with the oversupply of goods and shopping channels, the retail industry has shifted from a "product-first" and "channel-first" approach to a "customer-first" model, giving consumers more influence. As a result, traditional supermarkets are facing substantial operational challenges, making transformation and upgrading essential.

Since April, Pangdonglai has helped revive many stores, including those of Yonghui and Zhongbai Group, by implementing its reform model.

"Objectively, Yonghui Supermarket has indeed faced significant operational pressure in recent years. Under such pressure, we learned from Pangdonglai's approach of high self-sourcing and self-operation, focusing on product quality, customer experience, and greater respect for employees," said a representative from Yonghui.

The representative also mentioned that, based on the strong initial performance of the revamped Yonghui store in Chongqing, adopting the Pangdonglai model has yielded positive results. In the future, Yonghui plans to gradually implement the model at other stores in the city.

However, some industry insiders believe that after the short-term buzz from the store opening fades, whether "Pangdonglai-inspired" stores can maintain their popularity in the long run remains uncertain.

According to Liao Chenglin, professor at the School of Economics and Business Administration of Chongqing University, Pangdonglai's success is based on genuine, high-quality products, refined services, and respect for employees' rights. However, he sees Pangdonglai as an industry outlier, and simply copying his model may not resolve traditional supermarkets' fundamental issues. At present, the "zero to one" reform has been effective, but sustaining long-term operational success remains to be seen. This will be a challenge for traditional supermarkets like Yonghui, which are learning from Pangdonglai.

"In today's environment, traditional supermarkets must transform and upgrade to stay attractive. They need to focus on market demand and continually improve quality and service," suggested Mo.

Mo emphasized the importance of seizing strategic opportunities for transformation, continuously innovating, optimizing product offerings for better quality and pricing, introducing new consumer experiences and models, nurturing both company and product brands to enhance influence, and transitioning to modern enterprises that inspire creativity in management and staff to provide better services to consumers.

(Huang Guanghong and Qiu Xiaoya, reporters from Chongqing Daily, also contributed to this report)