China: Freshippo and Pang Dong Lai prepare for direct competition in Henan
- DRC Discount Retail Consulting GmbH
- 7 hours ago
- 3 min read
Freshippo has officially announced its entry into Xinxiang Baolong Plaza, taking over the space left by the shuttered Yonghui Supermarket!
On April 1st, the Yonghui Supermarket at Xinxiang Baolong Plaza officially closed its doors. Just nine days later, Freshippo high-profilely announced it would take over the unit. Construction barriers are already up, renovations are in full swing, and the store is expected to open to the public by late June.
Located just 1.5 kilometers from Pang Dong Lai’s "San Pang" (Third Store) location, this site is set to become the first frontline battlefield where Freshippo and Pang Dong Lai face off head-to-head.
Freshippo Marches into Pang Dong Lai’s Heartland
Xinxiang, Henan, is the city with the most Pang Dong Lai stores outside of its home base in Xuchang. Local consumers affectionately refer to the three existing locations as "Da Pang" (Big Pang), "Xiao Pang" (Little Pang), and "San Pang" (Third Pang).
Pang Dong Lai has been deeply rooted in this city for nearly 20 years. In this region, the brand is considered an invincible legend. Data shows that in 2025, the Pang Dong Lai Group reached annual sales of 23.53 billion RMB, a year-on-year increase of 38.7%. The Xinxiang "Da Pang" and "Xiao Pang" stores ranked third and fourth in total sales across all locations, contributing roughly a quarter of the group’s total performance.
Freshippo’s chosen landing spot is the L1 level of Baolong Plaza, formerly occupied by Yonghui. Interestingly, this Yonghui store was included in the first batch of "Pang Dong Lai Assistance and Restructuring" programs in May 2024, but the plan was never fully implemented. In its closing announcement, Yonghui candidly admitted: "We failed to truly provide the public with substantial products, a comfortable shopping environment, and satisfying service."
Yonghui’s retreat and Freshippo’s advance mark a critical turning point in the changing of the guard within the retail industry.
Freshippo’s Ambition
Looking at the broader Henan province, Freshippo's ambitions become even clearer. Since September 2025, its expansion has accelerated, entering cities like Luoyang, Nanyang, Puyang, and Shangqiu. With seven stores now in Zhengzhou, Freshippo has built a formidable network in the province.
In fact, the Henan supermarket industry in 2026 has become the most competitive arena in China. Alongside Freshippo, local forces like Xianfeng Life and Huayu Baijia are rising, Metro is opening its second store, and Sam’s Club is planning its Zhengzhou debut.
Industry experts predict that by the end of 2026, the "entry requirement" to be a major player in Henan will be an annual single-store revenue of 300 million RMB and an average transaction value exceeding 100 RMB.
Who Has the Upper Hand?
Two models, two sets of logic — who will win? The answer might not be one or the other.
Xinxiang’s consumer market is likely large enough to accommodate more than one retail giant. In 2025, the city’s GDP reached 368.7 billion RMB. Freshippo’s entry isn't necessarily a zero-sum game for the existing market; rather, it diversifies what’s available to consumers.
Analysts suggest that Freshippo will differentiate itself through its digital supply chain and delivery efficiency, while Pang Dong Lai continues to lead through its legendary service and local reputation. Together, they may simply grow the "consumer pie" for the entire region.
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