The first thousand one hundred and sixty-four chapters Shenlan supermarket expansion
Things were going well in the stock market, and Li Guangyu temporarily put aside his concern and turned his attention to Xuelan Retail Company, a subsidiary of Hengyu Supermarket Group.
After several months of operation, the Vancouver store finally achieved profitability last month, excluding membership fees and the salaries of company executives.
Excluding the wages of store employees, as well as water, electricity and store expenses, the profit of the Shenandoah Supermarket Vancouver store last month was converted into US dollars, which was close to 5,000, which is equivalent to 39,000 Hong Kong dollars, which is less than the weekly profit of a convenience store in Central.
But this has made Li Guangyu very happy, and the monthly turnover of the Vancouver store continues to rise, and the number of members continues to increase. As long as this continues, the future prospects of Xuelan Supermarket will be very bright.
Li Guangyu has never been very familiar with this business model, so he has never been confident. He is also more willing to do retail in Dahengyu Supermarket, South China Electrical Appliance Chain and other models. Xuelan Supermarket is more of an experimental product.
Li Guangyu didn't have high expectations for this. It was similar to the Caojie Power Station Development Company jointly established with the Mainland. If it could succeed, it would be the best. If it failed, it would be turned around in time. Anyway, it would be easier to turn it into a Hengyu Supermarket.
At present, Xuelin Supermarket is already in operation in Vancouver, Toronto, Ottawa, and Quebec, and its stores in Tokyo, Osaka, Nagoya, Taipei, and Kaohsiung are under renovation.
Canada is the focus of the development of Shenandoah Supermarket, and the layout of Japan and Taiwan was specially ordered by Li Guangyu to expand in order to compete with Ito-Yokado and Wal-Mart.
In the conference room of Hengyu Supermarket Group, Li Guangyu, Gan Qin, Li Xuelan and senior executives of Hengyu Supermarket Group discussed the development of Xuelan Supermarket in the future.
Li Guangyu said: "I am very happy to see that the Xuelan Supermarket Vancouver store can achieve profitability without relying on membership fees. This shows that this model is completely feasible. Next, we need to consider expanding the scale of Xuelan Supermarket.
Let’s seize the market of Costco and Sam’s Club in advance. Let us know if you have any opinions.”
The senior executives of Hengyu Supermarket Group are very happy. With Li Guangyu's approval, Xuelan Supermarket will become the second Hengyu Supermarket. In the future, Hengyu Supermarket Group will include Hengyu Supermarket, 7-11 convenience store and Xuelan Supermarket.
Standing on three pillars, each company is extremely powerful.
As long as this continues to develop, in the future retail market, any of these three companies will be able to enter the top ten global retail companies, and they are in charge of three of the top ten retail companies in the world, which will make their reputations infinitely higher.
Li Xuelan is also very happy about this. Her own core team is Hengyu Supermarket Group. The better this group develops, the greater her voice will be within the Li Group.
Moreover, this supermarket is named after her, so she naturally hopes that Xuelan Supermarket will be as big as possible.
Liu Weifang, vice president of the group and general manager of Xuelan Supermarket Company, said: "Li Sheng, because of our model, it is mainly suitable for development in Europe and the United States. My personal opinion is to increase the layout in North America and Western Europe, especially the U.S. market.
, I suggest focusing on layout and seizing the market of Sam’s Club and Costco in advance.”
As the general manager of Xuelan Retail Supermarket Company, Liu Weifang naturally hopes that Xuelan Supermarket will expand as fast as possible. She knows very well that it is simply unrealistic for the store size to reach that of Hengyu Supermarket Group. In large cities, Hengyu Supermarket can open multiple stores.
, they can only open one, or at most two, stores in one city.
She now hopes that Li Guangyu can approve more expansion funds. She will first occupy the large urban markets in the United States, especially New York, Los Angeles, Philadelphia, San Francisco, Dallas, Houston, Washington, Chicago, Boston, San Jose and other places.
The expansion of Xuelan Supermarket is much more convenient than that of Costco. It has the support of Hengyu Supermarket Group in terms of logistics and warehousing. She does not need to think too much about it for the time being. Now Hengyu Supermarket Group is not short of funds and is fully capable of expanding its business in Canada and
The layout of large and medium-sized cities in the United States.
Li Xuelan said aloud: "Li Sheng, I agree with Miss Liu's opinion. At the same time, I suggest building a Xuelan supermarket in Singapore, Hong Kong and Seoul to see the market response in these regions.
In addition, we cannot give up on Western Europe. We can temporarily establish one in London, Paris, Berlin, and Rome, and then expand to the surrounding areas."
Chen Linwen, president of Hengyu Supermarket Group, has no objection to such expansion. Anyway, the Hengyu Supermarket Group now has a lot of funds in its account, which is enough to support the expansion of Xuelan Supermarket.
In the first three quarters of this year, Hengyu Supermarket Group's turnover has exceeded US$15 billion, and it is expected to exceed US$20 billion this year.
If Kmart in the United States does not have much growth this year, Hengyu Supermarket Group is likely to surpass them, leaving only Sears in front.
However, it is estimated that it will take a few years for Hengyu Supermarket Group to catch up with Sears. Sears this year is really awesome. After Sears changed its president, its sales continued to soar. Last year, it was 27 billion US dollars.
The turnover has reached 35 billion in the first three quarters of this year, and the annual revenue is expected to be more than 47 billion US dollars.
Wal-Mart is getting farther and farther away from Hengyu Supermarket Group. Wal-Mart's revenue in the first three quarters was only US$9 billion, and it is expected to be around US$13 billion this year.
If Xuelan Supermarket expands rapidly, it will allow Hengyu Supermarket Group to quickly reach the top of the world in terms of revenue. This is a huge honor, and this is what the top management of Hengyu Supermarket Group has been striving for.
It's a pity that they don't know the future. Li Guangyu will split the Hengyu Supermarket Group into four in the future. Hengyu Supermarket will remain in the Hengyu Supermarket Group, 7-11 will become an independent convenience store chain group, and Xuelan Retail Supermarket will also become an independent convenience store chain group.
group.
Hengyu Logistics has also become an independent group, specializing in logistics services for the entire Lee Group. It will also integrate Heung Kong Freight Company and Wheelock Shipping Company.
In the future, the Wheelock Group will mainly be Wheelock Plaza, and the fleet will be too awkward there. It would be better to integrate it into the logistics side.
By then, these three major retailers plus South China Electrical Appliances Retail will be the biggest cash flow pillar of the Li Group. The only advantage of these groups under the Li Group is that they don’t need to worry about rising housing prices. Li Guangyu has basically bought these stores himself.
Come down.
After these senior executives spoke, Li Guangyu said aloud: "I know that the group now needs money, money, and people. I can understand your eagerness to seize the market. It's just that Xuelan Supermarket is different from 7-11 and also different from 7-11."
Hengyu Supermarket, due to the particularity of the membership system, we need to understand the local market in detail before selecting a location for construction. The expansion should not be too rapid.
This year I propose to establish eight more in North America, four in Asia, and four in Western Europe. After these are put into use, we will start a new round of expansion."
Li Guangyu knew very well that if he did not impose quantity restrictions, Li Xuelan and Hengyu Supermarket Group would probably follow Fujiwara Keiyin's example and create hundreds of stores at once. Hengyu Supermarket Group has very strong funds in its account.
In the first three quarters, Hengyu Supermarket Group's profit exceeded US$2.5 billion. There is no limit, and they can plan all the money.
You must know that after every year-end review, their profits must be handed over. The major groups are now trying every means to obtain expansion funds from Li Guangyu to avoid handing over all the group's profits.
Li Xuelan and others felt a little disappointed when they heard Li Guangyu's restriction, but they still agreed. Li Guangyu had already decided, and it was useless for them to object.
Fang Ruoqiang, executive vice president of Hengyu Supermarket Group, said: "Li Sheng, currently our supermarkets can expand to provincial capital cities in mainland China, but this poses considerable challenges to our supply. This involves warehousing bases. Do we need each provincial capital?
Build a warehousing center?"
Now the top management of Hengyu Supermarket Group is in a dilemma. They have to build stores in every provincial capital and only serve a few stores in the provincial capitals. The cost is too high. If they don't build, the distribution of goods will not be able to keep up with the current transportation in the mainland.