Pagoda Reportedly Acquires Discount Supermarket Chain Wangpi Matou; Franchise Dept Confirms Merger

September 2025 — Chinese fruit retail giant Pagoda has reportedly acquired control of discount supermarket chain Wangpi Matou (网批码头), according to recent industry reports. However, the company has declined to comment on the matter.

Acquisition Confirmed by Wangpi Matou's Franchise Department

On September 18, Southern Metropolis Daily's financial desk sought confirmation from Pagoda's相关负责人, who declined to respond. Subsequently, on September 23, the publication learned from Wangpi Matou's franchise department that the discount chain was merged under Pagoda's control in November 2025.

Wangpi Matou is operated by Changsha Jingrui Food Trade Co., Ltd. (长沙景瑞食品贸易有限公司), established in 2013. The company initially launched "Snacks Manwu" (零食满屋) in the same year, followed by Wangpi Matou in 2018. Originally focused on bulk snacks, Wangpi Matou transitioned to a major-brand discount supermarket model in 2024 and rebranded as "Money-Saving Supermarket" (省钱超市) in 2025.

Unlike hard discount stores such as Superbox NB or Happy Monkey, Wangpi Matou's physical stores more closely resemble snack-led discount outlets. This model is similar to that of Snacks Youming and Zhao Yiming's Money-Saving Supermarkets: most shelf space is occupied by snack categories, supplemented by daily necessities including tobacco, alcohol, personal care, paper products, rice, flour, and cooking oil.

According to official public data, Wangpi Matou currently operates over 300 stores, primarily in Hunan, Hubei, and Shandong provinces.

Ownership Structure and Confirmation

Industrial and commercial records show that Changsha Jingrui Food Trade Co., Ltd. has not undergone any equity changes since last year. The company has three natural-person shareholders: Chen Ping (54.35%), Chen Gang (24.52%), and Chen Jianlin (21.13%), with founder Sun Hui.

On September 23, a reporter from Southern Metropolis Daily contacted Wangpi Matou's franchise manager, Mr. Hu (pseudonym), under the pretext of franchise inquiry. Mr. Hu shared a franchise brochure indicating that Wangpi Matou was merged under Pagoda's control in November 2025. Additionally, the social media account "Wangpi Matou · Franchise Center," operated by Changsha Jingrui, also states it is controlled by a listed company.

Mr. Hu confirmed that Pagoda took control of Wangpi Matou at the end of last year, though the synergy in fruit product supply remains unclear. "Stores currently selling fruit are all self-purchased by distributors," he said. Mr. Hu noted that Pagoda's control provides Wangpi Matou with a listed company endorsement and an injection of capital.

Market Position and Franchise Model

Compared to other local Hunan snack brands, Wangpi Matou's store count is relatively small. Official data shows Dai Yonghong has over 1,000 stores, Ai Snacks over 2,000, and the Changsha-based Mingming Henmang Group exceeds 26,000 stores.

Wangpi Matou aims to attract franchisees with lower investment thresholds. According to Mr. Hu, franchise investment is smaller than industry leaders Zhao Yiming and Hao Xianglai. A store of approximately 100 square meters requires an investment of around 300,000–400,000 RMB. The company offers three store types:

• Small format (80–100 sqm): Positioned as convenience stores
• Medium format (100–150 sqm): More snack varieties and daily necessities
• Large format: Additional categories

Wangpi Matou is also experimenting with adding simple meals to its stores, though this model remains unconfirmed. "The simple meals don't use open flames and don't require a restaurant license," Mr. Hu explained.

On September 24, Southern Metropolis Daily also contacted Wangpi Matou for comment on the acquisition. Customer service stated they would relay the inquiry, but no response was received by press time.

Pagoda's Core Business Under Pressure

Pagoda's first-half 2026 financial results showed a return to profitability, but single-store operations remain under pressure.

In the first half of 2026, Pagoda reported revenue of 5.008 billion RMB, a 14.5% year-on-year increase. Net profit attributable to shareholders was 33.564 million RMB, compared to a loss of 342 million RMB in the same period last year. However, store revenue continued to decline, with overall growth driven primarily by partner-brand stores.

As of June 2026, Pagoda's branded stores totaled 4,758, a net increase of 372 stores year-on-year and 290 stores from the beginning of the year. However, store sales revenue in the first half was 3.089 billion RMB, down approximately 0.10% year-on-year. Given the increase in store count, average revenue per store declined.

Over 98% of Pagoda's revenue comes from fruit, snacks, and other food sales. Performance varied by channel:

• Franchise fruit stores and direct sales: roughly flat
• Self-operated stores, regional agents, and online channels: declined
• Brand partner stores: generated 721 million RMB (new revenue stream)

Excluding partner store revenue, Pagoda's other channels saw a 2.72% decline to 4.191 billion RMB.

The partner store model stems from Pagoda's "Seven Star Alliance" initiative launched in the first half of this year, partnering with seven regional retail brands in Inner Mongolia, Shaanxi, Henan, Jiangsu, Hunan, Jiangxi, and Guizhou. Under this model, regional brands retain local selection and operational flexibility, exploring new formats such as "fruit + snacks," full-category standard discount supermarkets, and community fresh retail stores. As of August 28, partner stores numbered 1,951.

Strategic Rationale: Addressing Supply Chain Overcapacity

Pagoda's move into discount supermarkets comes after two consecutive years of significant store reductions in 2024 and 2025. Although store numbers have rebounded this year, the current count remains well below the 6,093 stores at the end of 2023. In its latest semi-annual report, Pagoda stated that its store network optimization is largely complete and that it has returned to a sustainable expansion track, with a lower franchise threshold through an agency operation model.

Lin Yue, an analyst at Lingyan Consulting, told Southern Metropolis Daily that the acquisition represents Pagoda's entry from fruit specialty retail into the community hard discount sector. "This is essentially bringing supply chain capabilities to find a second growth curve," he said. "Wangpi Matou, meanwhile, is upgrading from regional snack chain to full-category discount supermarket—bringing stores to find more efficient resources. The underlying logic is complementary, but actual operations face significant challenges."

Lin identified key challenges:

• Genetic conflict: Hard discounting relies on standardized products, high turnover, and low loss rates, while fresh produce is non-standard, slow-turning, and high-loss, requiring different cold chain, sorting, and expiration management systems
• Geographic limitations: Wangpi Matou's stores are concentrated in Changsha and surrounding areas; expansion beyond Hunan may face localization issues
• Financial health: Pagoda has just returned to profitability, but its core fruit retail business remains unhealthy, and capital markets may view this cross-sector move skeptically

Wang Guoping, a senior retail analyst, argued that Pagoda's primary motivation is addressing supply chain overcapacity resulting from store closures. "Pagoda's declining store count has led to supply chain overcapacity, requiring more channels to absorb and spread costs," he said. "Wangpi Matou has a need for fresh produce integration, while Pagoda has production capacity, cold chain logistics, and secondary-grade products that can be channeled through discount outlets."

Wang noted that Pagoda's products are positioned at higher price points, which may not match discount store customer demographics. "Segmentation is appropriate," he said. "After Pagoda's acquisition, independent operation of both entities would yield the best results."

Source: Southern Metropolis Daily