Summary of Key Points
In 2025, 767 executives from 84 retail listed companies received a total salary of 605 million yuan. The salary gap was vast, ranging from a maximum of 6.42 million yuan to a minimum of 60,000 yuan. However, this is not merely a simple “rich-poor list”; it reflects the differentiation within the retail industry, the differences in business models, and the reconfiguration of talent valuation. The industry has split into various segments, and the profit structure of each segment determines the level of compensation. Professional managers are becoming increasingly valuable, as the separation of control and ownership continues to evolve. This trend of differentiation will persist, with those who can generate profits commanding higher salaries.
I. Industry Differentiation as a Barometer: Double Salary Differences Across Segments
Retail is no longer a homogeneous industry; it has fragmented into several distinct segments, each with its own profit-making capabilities, which directly affect executives’ salaries:
- Differences in Business Models: Salaries vary significantly between different types of retail businesses. For example, duty-free (1.54 million yuan), jewelry and watches (940,000 yuan), and home goods (1 million yuan) have higher salaries due to the benefits associated with duty-free licenses (only a few companies can operate in this area) and the high gross margins of jewelry. In contrast, department stores and general merchandise stores have an average salary of 630,000 yuan, which, despite accounting for more than half of the executives, result in lower profits.
- Regional Differences: Salaries are higher in East China and South China compared to Northwest and Northeast China, reflecting the vitality of the retail markets in these regions.
- Top Executives Receiving the Majority of Salaries: The top 222 executives (less than 30%) receive the majority of the total salary pool, while the majority of the remaining executives earn between 200,000 and 300,000 yuan, indicating that the ability to drive performance is highly valued.
II. Each Segment Has Its Own “Salary Logic”
The profit models of different retail businesses dictate the rules for talent valuation:
- Department Stores and General Merchandise Stores: Although profits are low, top executives still receive high salaries (e.g., Chen Deli from Dasha Co., Ltd. earned 6.42 million yuan, and senior executives at Yonghui and Chongqing Department Store also received substantial salaries). However, lower-level management positions are affected by the low profits.
- Jewelry and Watches: High gross margins support higher salaries; executives like Guo Jin from Zhou Dasheng and Wang Yongzhong from Lao Fengxiang earned 2.54 million yuan and 2.22 million yuan, respectively.
- Pharmaceutical Chains: Standardized operations lead to stable salaries. Chain pharmacies such as Laibai Xing and Yifeng have clear salary structures for middle and senior management (e.g., Gao Yi from Yifeng earned 2.88 million yuan). The stability of these salaries is due to the standardized and scaled nature of the business.
- Home Goods: During a period of transformation, companies like Jingri Zhijia and Mekailong offer high salaries to retain their teams and attract new talent (e.g., Fang Yuzhi from Jingri Zhijia earned 4.5 million yuan, and Qiu Zhe from Mekailong earned 3.29 million yuan).
- Duty-Free: The unique nature of duty-free licenses results in higher salaries for executives at China Zhongmin (e.g., Wang Xuan earned 2.96 million yuan), as this business model is not accessible to others.
III. The Value of Talent Has Changed: Professional Managers Are More Valuable, and Owners Step Back
A significant change in the salary structure is the shift in who receives the money:
- Professional Managers Become the Main Drivers of High Salaries: Among the 222 executives earning over one million yuan, 148 are presidents, vice presidents, and other key performers (e.g., Chen Yi from Yuyuan Group earned 5.43 million yuan, and Fang Yuzhi from Jingri Zhijia earned 4.5 million yuan). It is now common for external managers to earn more than the company’s chairman, indicating a shift in the power to determine salaries from capital to those who can generate profits.
- Chairmen Who Earn No Salary Are Not Poor: They Manage the Business Differently: 108 executives earn no salary (mostly chairmen), as the money comes from their parent companies or families (e.g., 9 chairmen from Mekailong and 7 from Yonghui). This is particularly evident in traditional regional department stores, reflecting a still-family-owned business structure.
- Second-Generation Successors: New generations in the retail industry do not rely on salaries but on equity. They often do not receive high salaries from the listed companies and instead rely on family wealth or equity to drive the business.
IV. Future Trends: Further Differentiation and Increased Value of Performance
The salary structure indicates the future direction of the retail industry:
- Continued Differentiation: High-gross-margin segments will attract top talent. Businesses with high margins (duty-free, jewelry) will continue to offer higher salaries to attract skilled executives from low-profit segments. Department stores that want to retain their talent must align their compensation with market standards.
- A More Mature Professional Manager Market: Owners will increasingly recognize the need to pay market-based salaries for top talent.
- New Business Models Shape Talent Needs: Emerging formats such as instant retail, discount stores, and membership-based stores require different types of skills. What is valuable today may become less so in the future, as the industry evolves.
- Profit Is the Decisive Factor: In the future, the ability to generate profits will be the key to success. In tough times, those who can effectively manage the business will be the most valuable.
This salary structure reflects the true state of the retail industry in 2025: it is undergoing significant changes, with talent values shifting. Those who can capture profits will earn higher salaries. For individuals, choosing the right business segment and mastering the necessary skills are more important than staying with established companies.