Wumart Group unveiled its newly renovated store on Xueqing Road in Beijing on Friday.

After transforming the space with a new design and layout featuring a more lifestyle-oriented product assortment, as well as enhanced employee benefits, strategies that draw inspiration from its retail peer, Pangdonglai. The store received positive feedback on the first operating day, with sales exceeding 1 million yuan ($137,915) by Friday afternoon.

This store transformation is part of a larger initiative to revamp over 30 flagship locations nationwide by the end of 2025. The Beijing store now features a refreshed product selection, with about 90 percent of its layout mirroring that utilized by Pangdonglai.

This includes around 10,000 items, of which 70 percent are newly introduced and 15 percent are imported goods. The renovation is designed to appeal to Gen Z shoppers by promoting a lifestyle-oriented shopping experience.

In light of recent challenges faced by retailers in China, including declining traffic and heightened competition, several companies have turned to Pangdonglai for insights, including Better Life and Yonghui Superstores, as they seek to rejuvenate their businesses.

Jason Yu, general manager of CTR Market Research, said many traditional supermarkets struggle and Pangdonglai's exceptional performance — boasting annual sales exceeding 4.4 billion yuan ($606.83 million) per store, even in third-tier cities in Henan province — serves as a guiding light for enterprises exploring new growth avenues.

Yu said: "Pangdonglai disrupts the traditional chase for operational efficiency by prioritizing customer experience and employee benefits as cornerstones of their business philosophy."

The Wumart store offers a variety of lifestyle food products that have gained popularity on social media platforms, alongside private-label items from Pangdonglai, such as its well-regarded detergents and facial cleaning towels. Traditional brands, including P&G and Unilever, have taken a backseat in favor of niche offerings that promise specialized benefits.

A highlight of the revamped store is its expansive in-store processing area, dedicated to freshly baked and prepared foods. Signature products, including spicy beef and durian cakes, are designed to enhance the overall shopping experience.

One shopper, a woman in her 30s surnamed Cui who is impressed by the quality and safety assurances associated with Pangdonglai products, traveled a long distance to visit the store on its launch day. "Food quality and safety are my top priorities when choosing products," she said, after purchasing a bag of bakery products.

To further enhance customer satisfaction, Wumart has rolled out a range of value-added services. The entrance features self-service tea stations and access to essential medications, alongside complimentary offerings like blood pressure monitoring and pet storage facilities.

Central to the new store transformation is a strong commitment to employee satisfaction. Spokesperson Xu Lina said: "Employee satisfaction is key to our success. We aim to create a positive cycle, starting by lifting employee satisfaction, then providing better service, and ultimately harvesting more customer loyalty."

Wumart has shortened operational hours and increased entry-level salaries by an average of 50 percent, raising the minimum monthly wage to 6,000 yuan and enhancing annual leave policies.

"When it comes to prioritizing employee benefits over operational improvements, it's often a matter of'which comes first, the chicken or the egg'," Xu said. The company has chosen to offer employees added incentives and the store experienced robust customer traffic and impressive sales on its opening day, she said, a result of the motivated and passionate co-workers.

Wumart is also piloting a "supermarket plus large canteen" model in key markets such as Beijing and Tianjin, with certain locations reporting daily foot traffic exceeding 3,000 visitors.

Yu said, for retail enterprises, optimizing store displays and customer traffic flow while integrating some of Pangdonglai's products can be relatively straightforward. However, truly embracing Pangdonglai's corporate culture is not an easy task. The success hinges on strong product development capabilities and a robust supply chain-factors that cannot be cultivated through quick fixes, Yu said.