Snack retailers maximize growth potential

Busy Ming Group Co Ltd has become the first leisure snack and beverage chain in China to surpass 30,000 stores, indicating the rapid expansion of the discount snack retail sector amid expanding county-level penetration.

The Changsha, Hunan province-based company said recently that its signed store network exceeded 30,000 as of July 20. The category has grown from neighborhood snack outlets into a nationwide retail channel.

Busy Ming operates two major brands: "Busy For You", founded by Yan Zhou in Changsha, Hunan province, in March 2017, and "Super Ming", founded by Zhao Ding in Yichun, Jiangxi province, in January 2019.

The two businesses merged in November 2023 to form Busy Ming Group, combining their store networks, procurement capabilities and regional reach.

The company's expansion follows its listing on the Hong Kong stock exchange in January. For 2025, Busy Ming reported gross merchandise value of 93.57 billion yuan ($13.86 billion) and adjusted net profit of 2.69 billion yuan, signaling performance that the company attributed to improved inventory efficiency and a rising contribution from multi-store franchise operators.

CITIC Securities said the discount snack sector remains in an early growth phase, with hard-discount retail formats demonstrating resilience through economic cycles. Leading snack discounters still have more than 50 percent store-opening potential, while future growth will depend on category expansion, private-label development and store-format optimization.

According to the 2026 China Chain Store Top 100 ranking released by the China Chain Store & Franchise Association on June 15, based on 2025 sales, Walmart China ranked first with sales of 195.86 billion yuan, followed by Freshippo, Alibaba's grocery chain, with 107 billion yuan. Busy Ming ranked third with sales of 93.57 billion yuan, making it the only non-supermarket and non-membership retail specialist among the top five companies.

The country's fast-moving consumer goods market is also undergoing structural changes as consumers become more focused on value, said the 15th China Shopper Report 2026.

Jointly released by Worldpanel by Numerator and Bain & Company, the report found that while many traditional offline retail formats remained under pressure, two offline channels continued to grow. Snack collection stores expanded rapidly, particularly in lower-tier cities, while discount stores gained traction among consumers seeking affordable everyday essentials and bulk purchases.

For Busy Ming, the snack retail segment has evolved beyond a fragmented consumer category into a large-scale distribution network linking manufacturers, logistics infrastructure and millions of consumers.

The company now operates across all provincial-level regions in China, covering more than 1,400 county-level markets. By the end of 2025, about 60 percent of its stores were located in counties and towns, while more than 65 percent were in third-tier or smaller cities.

The expansion reflects a broader shift in the country's retail landscape, with discount-oriented chains increasingly targeting lower-tier markets rather than competing solely for mature urban consumers. These areas offer significant growth potential as consumers seek branded products at lower prices.

The company's operating model relies on direct sourcing from manufacturers, large-scale procurement and a nationwide logistics network. The company said its warehouses are designed to serve stores within a 300-kilometer radius with 24-hour delivery cycles.

The model has helped reduce inventory turnover to about 12 days. According to Frost & Sullivan, Busy Ming's average product prices were about 25 percent lower than comparable products sold through traditional offline supermarkets by the end of 2024.

The company's products include bakery items, biscuits, nuts and seeds, puffed snacks and instant meals, deli snacks, confectionery, chocolates and preserves, and beverages.

Beyond supply chain efficiency, discount snack operators are increasingly using consumer data to shape product development. At Busy Ming, customized SKUs — stock keeping units — account for more than 30 percent of its product assortment. The company generally requires each store to maintain a minimum of 1,800 SKUs.

The company has expanded its offerings through smaller packages and frequent product launches aimed at lowering trial costs for consumers. The approach reflects a shift from traditional retail, where suppliers largely determined product selection, toward a model driven by consumer demand and data analysis.