.September 24, 2024 02:32:21 AM

Miniso Group’s stock plummeted after announcing plans to acquire a stake in Yonghui Superstores, a major Chinese supermarket chain, signaling a shift from its core lifestyle products business. Investors expressed concerns about the move’s strategic value and potential risks, fearing dilution of Miniso’s brand and financial strain from increased debt. The stock market typically reacts cautiously to companies diversifying into new sectors, especially low-margin industries like supermarkets. Despite potential benefits like revenue diversification and cross-selling opportunities, investors remain wary of Miniso’s foray into the grocery business. Monitoring Miniso’s financial performance post-acquisition is crucial for investors.