Financial Performance Research Based On The New Retail Business Model

With the development of new technologies such as Internet+,big data,and artificial intelligence,consumption structure and concept have undergone subtle changes,and the traditional retail industry is facing a series of iterative upgrade challenges.The state has issued policy documents to encourage brick-and-mortar retail enterprises to innovate business models and actively cope with the current challenges of retail enterprises’ transformation for many times.As a representative enterprise of new retail,Yonghui Supermarket has certain reference significance for the research on new retail and the transformation of other retail enterprises.Due to the relatively short development time of new retail and the lack of related research of new retail and financial performance,this paper links various elements with financial performance,to which explore the impact of new retail on the financial performance of Yonghui Supermarket.Moreover,this paper wants to find problems with the current model and can also provide reference for other retail industries.Firstly,this paper introduces the development of the retail industry based on domestic and foreign literature and theory.Secondly,it analyzes the new retail business model of Yonghui Supermarket.In this aspect,it uses PEST and SWOT analysis methods to discuss the reasons for Yonghui Supermarket to transform into a new retail business model.Thirdly,it introduces the operation stage of Yonghui Supermarket’s business model,and then analyzes five business model elements of Yonghui Supermarket,including positioning,business system,key resource capability,profit model and cash flow structure.Fourthly,it establishes business model elements and financial performance analysis framework starting from the four dimensions of profitability: asset allocation,capital acquisition and cash structure,and analyzes the financial performance of the company in combination with profitability,operating ability and solvency.Lastly,this paper used EVA evaluation method to comprehensively evaluate the financial performance of Yonghui Supermarket.Through research,it is found that the new retail business model has a certain positive effect on the financial performance of enterprises.Since the layout of the new retail strategy in 2017,Yonghui Supermarket’s revenue capacity and cash hematopoietic capacity have risen rapidly,ranking at the forefront of the industry,which is also of positive significance for market occupation.However,at the same time,new retail has certain risks for the development of enterprises,such as unstable financial performance,sharp decline in operating ability and solvency,and the shortfall of net investment cash flow is relatively large.In addition,in the process of implementing the new retail model,Yonghui Supermarket has some problems such as excessive expansion speed,bottlenecks in strategic layout and weak technical force.Therefore,this paper puts forward relevant suggestions for these problems and puts forward some enlightenment for the transformation of traditional retail enterprises to new business models.It is hoped that the case study in this paper has a certain reference value for the development of new retail,and has merit for the innovative development of retail enterprises.