Pangdonglai setting new retail standards

When Premier Li Qiang convened a symposium on Tuesday with experts and entrepreneurs to discuss the country's economic situation and priorities for the next stage, one attendee drew particular attention — Yu Donglai, founder of retail chain Pangdonglai.

This has highlighted the growing policy interest in a new model of consumer-driven growth. The model is built not only on expanding sales, but also on improving service quality, strengthening consumer confidence and investing in employees.

Li said the country's economy is shifting toward high-quality development. Among the priorities he outlined was the need to expand domestic demand by increasing the supply of quality services, combining investment in physical assets with investment in human capital, stabilizing employment and stimulating market vitality through reform.

Those themes closely align with the business philosophy promoted by Pangdonglai. The supermarket chain, based in Henan province, has become a benchmark in the retail sector for its emphasis on service, employee welfare and customer experience.

Against this backdrop, Pangdonglai stands out from many traditional retailers. On the 2026 top 100 supermarkets list released by the China Chain Store & Franchise Association, Pangdonglai climbed to ninth place, up from 19th last year. The company reported first-half sales of 14.5 billion yuan ($2.14 billion) this year, up 24 percent year-on-year.

But its influence extends beyond sales figures. Officials and industry observers have increasingly cited Pangdonglai as an example of how retailers can improve consumer confidence through better products, services and employee management.

At a Ministry of Commerce news conference on July 9, officials referenced Pangdonglai's experience twice, praising its efforts to "return to the essence of commerce" and improve the quality of goods and services.

Dong Lichun, vice-mayor of Xuchang where Pangdonglai is headquartered, said the company provided stable employment for more than 19,000 people in the first half and attracted more than 1 million visitors from across the country, with the Xuchang store having become a destination for both shoppers and tourists.

Dong said Xuchang's retail sales growth has remained among the strongest in the province for 29 consecutive months.

Jason Yu, general manager at CTR Market Research, said the invitation to Yu to attend the symposium sent a strong signal that the government is encouraging innovation in the real economy and prioritizing efforts to boost consumption.

"Pangdonglai has earned consumers' trust through exceptional services and a genuine customer-first approach, showing that improving supply-side quality and rebuilding consumer confidence are key to unlocking consumption," Yu said.

The symposium also underscored the importance of improving public services and stabilizing employment, he added. "By transforming employees from a 'cost center' into 'long-term assets', Pangdonglai has shown that the ultimate purpose of business is not simply to generate profits, but to create well-being and happiness for people."

For example, Pangdonglai has advocated sharing business gains with workers, arguing that improving employees' well-being can ultimately strengthen a company's competitiveness.

The company provides frontline employees with an average monthly take-home pay of about 9,400 yuan. Management staff generally receive two-day weekends, while frontline workers typically work shorter shifts and receive extensive paid leave benefits.

The retailer has also introduced a "grievance award" system, compensating employees who are treated unfairly by customers.