The Chinese Chain Store Business Association released a list of "the 100 strongest chain stores in China in 2020". The list ranks growth compared to last year. Pagoda has been the strongest chain store for 6 years in a row. The list also shows that chain store sales figures suffered from the pandemic and a trend towards group buying in 2020. Data from the association shows that the top 100 chain stores are experiencing negative growth for the first time, although some chain stores still grew and some even opened new stores despite the general economic recession.
Why do some companies suffer from the economic recession and shrink, while others manage to defy the trend and grow? Analysts from the association explained that consumers changed their purchase patterns and moved to online retail during the pandemic. Companies that took advantage of this trend to provide home delivery, live-stream activities, and community services, combined with in-store services and customer experiences, all of them supported by digitized platforms. These companies defied the trend and managed to grow during a pandemic. Pagoda was one of the companies that steadily developed integrated online and offline customer services aimed at communities during the pandemic.
Pagoda first started developing 'new retail' in 2016. They provide integrated services from production area to consumer market. They rely on a superior supply chain. Pagoda has more than 4,000 shops throughout the country and they remained open during the pandemic to guarantee a supply of essentials for the people. They also considered the convenience of people who could not leave the house to go shopping. Pagoda provided online shopping with delivery to the door. In addition to the app, Pagoda also actively engaged with neighborhood stores to provide group purchases and scheduled deliveries for the convenience of people in communities. Pagoda also tried new methods to promote sales, such as live-stream sales. They engaged in a number of activities to compensate for the impact of the pandemic on brick-and-mortar stores. That is how Pagoda stabilized sales.
In addition, the published list also shows Yonghui Supermarkets ranks fourth with a total sales value of 104.53 billion yuan [16 billion USD], just ahead of Joy Wing Mau and CR Vanguard.