“Previously, when we inventoried stock, three people would work on Excel for three days. Now, AI takes one glance and produces results in ten minutes.” At a Youyoucao Eyu flagship store in Chongqing’s Jiefangbei area, store manager Li Min pointed to small labels on the shelves and told reporters. This retail brand, deeply rooted in the Hubei-Chongqing region for years, has recently drawn attention for an internal transformation—embedding artificial intelligence technology across the entire chain from procurement and warehousing to terminal sales.
As a representative regional chain retailer, Youyoucao Eyu has long been known for being “down-to-earth.” But starting in the second half of last year, a quiet digital overhaul began unfolding internally. According to the company’s operations director, Zhang Wei, the initial entry point was not a high-end algorithm model, but the most tedious task: inventory management. “The climate in the Hubei-Chongqing region is humid, and fresh produce spoilage rates have remained high year-round. We tried many methods, and in the end, we found that the accuracy of AI prediction models was nearly 15% higher than the judgment of experienced employees,” he said.
This “application of AI in business operations” is not an isolated case. At Youyoucao Eyu’s supply chain center, reporters saw a system called “Cao Zhi Lian.” It can capture real-time store POS data, weather forecasts, nearby community population flows, and even holiday information, automatically generating replenishment suggestions. Procurement manager Wang Jianguo described the change: “Before, we made decisions based on gut feelings and guesswork. Now, we make decisions based on data. For example, this summer during the prolonged heatwave in Chongqing, the system issued early warnings about peak demand for watermelons and cold drinks. We stocked up in advance, and sales increased by 22% year-on-year.” Wang admitted that initially, employees were resistant, fearing they would be replaced by machines. But in practice, AI handles repetitive, high-intensity computational tasks, freeing up human energy to focus on areas requiring more judgment, such as supplier negotiations and trial sales of new products.
What has drawn even more attention from the outside world is Youyoucao Eyu’s use of AI in the in-store experience. At a branch in Wuhan’s Optics Valley, reporters found a smart interactive screen next to the checkout counter. When customers scan a product’s barcode, the screen displays the product’s origin traceability video, nutritional pairing suggestions, and even personalized coupons based on the user’s purchase history. “We call it the ‘AI shopping assistant,’” said project leader Chen Xi. “It doesn’t chatter like a human salesperson, but the information it provides is very precise. Some customers have said they originally planned to buy just one box of yogurt, but after seeing the pairing suggestions, they picked up oatmeal and fruit as well.” This kind of “subtle and unobtrusive” AI application is transforming traditional retail’s “people-find-products” model into a “products-find-people” model.
Of course, the transformation has not been smooth sailing. Zhang Wei admitted that the biggest challenge came from data silos. Youyoucao Eyu operates various formats, including directly-operated stores, franchise stores, and community fresh food cabinets, each with different system interfaces. “We spent three months cleaning data and connecting dozens of systems before the AI model could truly run.” Additionally, cost was a barrier. According to estimates, the upfront investment for the entire AI system exceeded 3 million yuan—no small amount for a regional retail enterprise. “But in the long run, it’s worth it—just the reduction in spoilage rates alone saves enough in one year to recoup the investment,” Zhang said.
Currently, Youyoucao Eyu’s AI transformation is showing initial results. According to internal data, inventory turnover rates at pilot stores have increased by 28%, and customer repurchase rates have risen by 12%. This case has also sparked industry attention. At a recent Southwest Retail Innovation Summit, Youyoucao Eyu’s practice was shared as a model, with many peers in the audience taking photos with their phones. “Many people ask me, ‘How much money can AI actually help me make?’ My answer is: don’t first think about how much money it can make; first think about how much trouble it can save you,” Zhang said during his speech.
During the reporters’ visit, a retired teacher surnamed Liu, who was shopping, praised the AI shopping guide screen: “Before, when buying health products, I was always afraid of being fooled by sales pitches. Now the screen clearly lists the ingredients and contraindications, so I can judge for myself.” This kind of genuine feedback from ordinary consumers may be the greatest value of Youyoucao Eyu’s AI trial—it hasn’t changed the essence of retail, but it has made information more transparent, decisions more efficient, and the experience more thoughtful.
From procurement decisions in the fields to store services in urban commercial districts, Youyoucao Eyu is using AI to redefine “familiar places.” Behind this transformation lies a pragmatic breakthrough by Chinese regional retail enterprises facing the digital wave: not pursuing flashy technology, but pursuing tangible results.