Offline retail transformation is underway: Suning.com plays its “Experience Stores, Youthful Momentum, and Tier-Down Network” three cards

On the evening of March 30, Suning Commerce Group (002024.SZ) released its 2025 results card: for the full year, it achieved net profit attributable to shareholders of listed companies of RMB 58.14 million, maintaining profitability for two consecutive years. Against the backdrop of overall industry pressure and a structural divergence in consumer recovery, the signals conveyed by this earnings report go far beyond the two words “profitable.”

According to the annual report, in 2025 Suning Commerce Group achieved operating revenue of RMB 48.96B. Although revenue declined year over year, affected by a drop in industry sentiment in the fourth quarter, the overall scale remained basically stable. Even more noteworthy is that its net cash flow from operating activities was RMB 2.36B—still delivering positive inflows—indicating a repair of the “cash-generating” capability of its main business.

However, what truly captures the market’s attention is a deep restructuring Suning Commerce Group is carrying out offline. When “involution” becomes the keyword in retail, this retail company that has been deeply rooted in the industry for over 30 years is trying to use a combination of moves to redefine the value of physical stores.

Fundamentals behind profitability: Main business repair and debt resolution advancing in parallel

Turning to the 2025 annual report, there are several key figures worth closely reading.

First, the profitability of the core business is being restored. Although affected by a high base in the fourth quarter of the industry and the diminishing marginal effects of policy, the company’s full-year operating revenue declined. However, in the first three quarters, the company’s store sales revenue still grew year over year by 3.5%, and the revenue of comparable stores for its home appliances and 3C home appliances and home living specialty stores grew year over year by 5.4%. This shows that during the window period of the “national subsidy” policy, Suning Commerce Group seized market opportunities, revealing the resilience of its offline development.

Second, debt resolution has made substantial breakthroughs. The annual report shows that the company achieved investment gains of RMB 2.69B through debt restructuring, and investment gains of RMB 1.41B from disposing of subsidiaries and joint venture companies. Among them, it reached a settlement with France’s Carrefour Group regarding the remaining equity purchase payment for its stake in You-You-Shi China, effectively resolving overseas debt risk. Subsidiaries such as Dongguan Sufu Trading reached debt settlements, continuing to ease the debt burden. By the end of 2025, the ending balance of the company’s accounts payable and commercial acceptance bills payable had decreased by RMB 2.13B compared with the beginning of the period, with the overall leverage level steadily reduced.

第%1, improved cash flow provides support for operations. With support from local governments, the company’s jointly granted credit committee operated smoothly, effectively stabilizing existing credit lines. At the same time, by selling other equity instrument investments and other assets and remitting RMB 2B in proceeds, the company provided funding support for business development.

Core-city “experience stores” breakthrough: Redefining the sales floor with scenarios

On Huaihai Road in Nanjing, a store called Suning Max has become a new local landmark. There is no overcrowded pile of traditional home-appliance retail counters; instead, there are 3C classrooms, a coffee experience area, a game interaction zone, a clothing washing and care workshop, a kitchen and food classroom…… Consumers can learn photography techniques under the guidance of professional instructors, or while taking a break in the coffee area, experience the interactive functions of the latest smart refrigerators.

This is the core of Suning Commerce Group’s 2025 offline transformation—upgrading the scene-based experience.

The annual report shows that during the reporting period, the company firmly promoted store transformation. It opened and renovated 79 large experience-type stores, including Suning Max and Suning Pro, and adjusted by closing 238 low-efficiency stores. Between an increase and a decrease, the functions and value of stores were redefined. These large experience stores are shifting from traditional “sales floors” to “life proposition venues.”

Behind this transformation is a precise judgment of consumer trends. In its annual report, Suning Commerce Group explicitly stated that it will “create value points in the emotional economy,” developing products centered on members and based on users’ lifestyles. When consumers step into a Suning Max store, what they purchase is no longer just home appliances, but a smart life experience carefully designed. From on-site demonstrations of bundled smart home solutions to one-on-one consultations via “concierge services,” these stores are becoming important touchpoints for consumers to perceive the brand and build trust.

Rebuilding the “capillaries” in lower-tier markets: A new story for Retail Cloud

While building benchmarks in core cities, Suning Commerce Group’s other hand is reaching deeply into the broad county and town market.

In 2025, the proportion of newly opened large stores in Suning Commerce Group’s Retail Cloud franchise network reached 24.10%. In the second half of the year, the scale of sales of Retail Cloud’s self-operated products grew year over year by 15.9%. Behind these figures lies an efficiency revolution in sinking channels.

In some county towns in Anhui, consumers can buy the latest AI smart home appliances through Suning Retail Cloud stores at prices and experiences synchronized with those of big cities. This is made possible by Suning Commerce Group’s deep restructuring of its supply chain. The annual report shows that in 2025, the share of full-channel custom products sold on a dedicated basis reached 23.4%. These more cost-effective and differentiated products have become the weapon that Retail Cloud uses to leverage the county and town market.

More importantly, Retail Cloud is upgrading from an “affiliate network” to an “empowerment platform.” In its annual report, Suning Commerce Group proposed a brand-new “Home+ Plan,” continuously expanding into county and town markets and strengthening the service system for deeper tiering. By applying AI large models and digital platforms, it precisely addresses pain points for county and town merchants in areas such as store operations and supply chain management, empowering partners such as brand owners and franchisees, and improving Retail Cloud stores’ capabilities to acquire customers and deliver services across the entire process.

The effects of this transformation are already starting to show. Since the third quarter, Retail Cloud business has stabilized, and the lower-tier market is becoming a new growth engine for Suning Commerce Group.

Younger “new species”: Suning Fun’s breakthrough beyond the niche

In March 2026, the first “Suning Fun Youth Power Center” opened in Nanjing at XinJieKou. This is not a traditional home-appliance retail venue; rather, it is a “Gen Z city life destination” that blends technology experiences, trendy retail, and social and recreational entertainment.

This is yet another layout by Suning Commerce Group for the future. As Post-90s and Post-00s become the main consumer force, their demand for “experience” far exceeds their demand for “products.” Suning Fun is a response to this trend—its core proposition is “emotion first, interest first,” allowing consumers to naturally perceive products and the brand through interaction and entertainment.

The launch of its exclusive IP “Leo” is also a snapshot of its brand youth strategy. Through IP-based operations, Suning Commerce Group seeks to build a deeper emotional connection with young consumers, not just a transactional relationship. This attempt signals a fundamental shift in the positioning of Suning Commerce Group’s offline stores: they are no longer traditional chain stores, but super touchpoints that carry brand mindshare and connect with target audiences.

Outlook: The “smart life service provider” driven by AI

At the starting point of 2026, Suning Commerce Group has set a new strategic positioning: to comprehensively upgrade into a “smart life service provider.”

At the core of this strategy is AI technology as the driver, and scenario-based experience as the core. By integrating online and offline channels, service that comes to the home and service in-store, and covering pre-sale, during-sale, and after-sale stages, it will provide users with smart life style services and become the “home life concierge” that users trust most. In its annual report, the company clearly stated that it aims to “build compatibility capabilities for intelligent agents,” using external resources to form computing power and algorithm capabilities, focusing on breaking through and fully developing core scenarios, and constructing brand mindshare.

On the operational level, for 2026 Suning Commerce Group has defined several key priorities: optimize the structure of its direct-operated home appliances and 3C stores; accelerate the development of Retail Cloud and YiCai Cloud; cultivate overseas and Flash Purchase businesses; strengthen sales of tailored and dedicated supply products; use AI technology to improve management efficiency; and focus on high-profit regions, high-gross-margin products, and high-efficiency stores.

On the product side, the company will bring in new AI smart products, and promote smart-home bundled lifestyle offerings. On the service side, relying on its store and after-sales network, it will build a pre-arranged installation-and-delivery integrated network, and push upgrades to standards for instant, near-field services.

Industry insiders believe that during the industry adjustment cycle, by focusing on its core business and rebuilding its capabilities, Suning Commerce Group is gradually establishing differentiated competitive advantages. As the benefits of the “national subsidy” policy continue to be released and the application of AI technology deepens, the company is expected to achieve coordinated improvement in both scale and efficiency in the next round of competition.

For a company with over 30 years of offline retail foundation, 2026 may become a critical turning point for its transformation. From “selling products” to “selling lifestyles,” from “scale expansion” to “deepening in scenarios,” Suning Commerce Group is proving with its actions that the value of offline operations has not yet been fully tapped.