Pioneering the Future of Retail with AI-Driven Transformation

| Client Profile

In December 1994, Dr. Zhang Wenzhong founded Beijing's first modern supermarket Wumart, marking the start of a three-decade journey of innovation and growth.

Today, Wumart Group is one of China’s largest and most established omnichannel digital retailers. The Group's portfolio features a powerful lineup of brands, including Wumart, MerryMart, METRO, B&Q, Xinhua Department Store, and Chongqing Department Store.

Across its 2,000+ stores, the company generates over ¥110 billion in annual revenue and serves nearly three billion customers a year, continuing to lead the technological advancement of China's retail industry.

| Collaboration Background

In response to the new omnichannel era, Wumart Group initiated a full digital transformation,  partnering with Dmall to establish its core digital infrastructure across customer loyalty, merchandising, store operations and HD management.

Building on this base, the partnership has evolved to pioneer AI-driven retail. Leveraging Dmall’s "Technology + Consulting" model, Wumart is revamping key stores like its Xueqing Road, transforming its business model and customer experience to lead innovation in China's retail industry.

| Co-Creation Journey

Building a Digital Foundation with DMALL OS to Enhance End-to-End Operational Efficiency

• Customer Engagement

• Wumart launched “Dmall App” to seamlessly integrate online and offline operations, enabling full-cycle digital membership management;

• Customers enjoy a frictionless omnichannel experience through self-checkout, in-app payments, and smart shopping carts;

• A digital trade area analytics system precisely profiles members within a 3-kilometer radius, enabling targeted promotions based on behavioral insights;

• The innovative “Tap-to-Join” feature streamlines both member registration and payment processes;

• Merchandise Management

• Leveraging member data analytics for intelligent product selection and optimized assortment planning.

• Digital planograms guide staff in accurate shelf placement, while AI-powered cameras autonomously monitor shelf conditions to ensure proper merchandising.

• The intelligent replenishment system ensures optimal stock levels, avoiding both overstocking and stockouts.

• Store Operations

• A multi-order system automatically splits orders and generates the most efficient picking routes, enhancing order fulfillment efficiency.

• With AI oversight and smart fencing, Wumart’s fully automated nighttime receiving process empowers drivers to unload goods independently, achieving major gains in after-hours operational efficiency.

• Even traditionally manual tasks, such as fresh meat cutting, are now digitized and standardized to improve profitability and staff performance.

• Headquarters Management

• A "Mobile Workspace" platform and end-to-end data visibility give headquarters a "digital remote control" for real-time task management and precise control over the entire enterprise.

From Insight to Impact: Establishing a Flagship Case in AI-Powered Retail

In close partnership with Wumart, Dmall leveraged its extensive experience in the retail sector to provide expert consulting services tailored to the client's needs. Through in-depth benchmarking studies and forward-looking trend analysis, Dmall distilled best practices and, in combination with its proprietary AI-powered capabilities, developed a customized transformation plan for Wumart’s Xueqing Road store.

This comprehensive solution covered key areas such as merchandise and supply chain strategy, marketing and brand positioning, in-store operational efficiency, and organizational effectiveness. The initiative successfully drove category upgrades, addressed previous gaps in bakery and fresh food preparation, revitalized the store’s public image, reshaped its business model, attracted a younger customer base, and enabled a full team and systems upgrade, establishing the store as a benchmark for AI-powered next-generation retail.

Distilling Best Practices for Scalable Rollout

The success of the Xueqing Road store validated Dmall’s dual capability in technology and consulting. Building on this success, Wumart expanded the model to additional stores, including Huangcun in Daxing, Beichen in Tianjin, and Gongshu Wanda in Hangzhou, all of which delivered strong results.

In parallel, Dmall refined and modularized its core technologies and consulting methodology into a scalable, standardized empowerment system. This system will support Wumart’s 2025 plan to upgrade over 30 key stores nationwide and serve a broader base of retail clients with adaptable, integrated “technology + consulting” solutions, driving greater efficiency and innovation across the industry.

| Co-Creation Achievements

The Intelligent Digital Platform: Driving Significant Gains in Operational Efficiency

• Stronger Membership Engagement

Within three months of app launch, Wumart added 8 million new digital members. Over 20 million members contribute 85% of total sales, with 12 million monthly active users and industry-leading repurchase rates. The “Tap-to-Join” feature alone attracted over 500,000 new members.

• Smarter Merchandising (Lenovo Bridge Store Case)

By reducing SKUs by 9,000 and downsizing self-operated floor space to 4,500㎡, the store increased both sales and average transaction value (ATV). The sell-through rate exceeded 90%, with inventory turnover at 20 days (10 days for fast-moving categories). AI-powered clearance brought in an additional RMB 3,000/day from just 17 SKUs, saving 2 hours of labor daily.

• Smoother Store Operations

Automated nighttime receiving reduces labor costs, improves efficiency, and ensures safety. Standardized pork cutting improves margins and staff performance. Self-checkout adoption cut shrinkage by 85% and labor demand by 30%.

• Simplified HQ Management

End-to-end data visibility enables precise replication of best practices across the network, providing a strong foundation for growth and future acquisitions.

A Synergy of Technology and Consulting: Driving a Quantum Leap in Operating Results

• Technology-Driven Efficiency Gains

At the Xueqing Road store, the IES Smart Energy Platform dynamically adjusted cold chain equipment usage, achieving a 25.88% energy savings compared to the previous day, saving an average of 468 kWh per day. AI-powered systems such as AI Clearance, AI Patrol, and smart traffic analysis improved merchandise turnover, optimized labor allocation, enhanced safety, and elevated the overall shopping experience.

• Significant Business Growth

Daily sales soared from approximately RMB 300,000 to around RMB 1.65 million. Daily foot traffic grew from about 4,000 to over 21,000, with customer satisfaction exceeding 95%.

Validating the Model and Driving Industry-Wide Advancement

Proven Success at Pilot StoreWumart’s Xueqing Road store served as the first self-restructured pilot site, achieving a 5.5× increase in sales and over 5× growth in foot traffic. These remarkable results provided strong validation of the digital transformation strategy’s effectiveness.

Rapid Replication with Tangible Results The Huangcun store in Daxing quickly adopted and implemented the same model, delivering notable improvements in product optimization, food safety enhancement, and service upgrades. Positive customer feedback confirmed the solution’s replicability and speed of implementation.

Scaled Rollout Underway Building on the validated empowerment model, Wumart has launched a comprehensive transformation initiative across more than 30 key stores nationwide—laying a solid foundation for broader industry empowerment and scalable retail innovation.

*Data based on actual feedback from DMALL clients.