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A loss of 10 million, a lesson in blood and tears!

A loss of 10 million, a lesson in blood and tears!

A loss of 10 million, a lesson in blood and tears!

1

It's getting harder and harder to do business.

Recently, a convenience store franchisee "opened 21 convenience stores for 10 million, and bluntly said that he regretted investing the most", which caused heated discussions.

According to the franchisee, he joined 21 convenience stores before and after, investing a total of more than 10 million yuan, but the return on investment is too poor, and the monthly profit has not been deposited in the bank with high interest!

High investment does not pay off.

What's the situation?

On the one hand, it is caused by the general environment, and on the other hand, it is also because of the intensification of competition.

The threshold for convenience stores is too low and too easy to copy.

What everyone fears the most is the emergence of new convenience stores around.

With so many people, once several stores are opened at the same time, the number of customers in the store will be diluted, and the business will naturally be cold.

If there is not enough cake to eat, the price can only be reduced to attract customers.

Desperately cutting prices, the business will only become more and more involuted.

This year, many convenience stores are in the red.

Some people even bluntly said that this is the hardest year for business!

Why don't you close the store and stop the loss in time?

How can it be so easy!

Many convenience stores have to pay a large security deposit, and if they do not operate for a certain period of time, this deposit cannot be recovered.

Like some convenience store giants, the margin is far greater than the franchise fee, generally as high as 10-200,000.

This is the investment breakdown of Meiyijia convenience store and is for reference only.

A loss of 10 million, a lesson in blood and tears!

Note: The picture comes from the Internet

See, the deposit also exceeds the franchise fee.

What about transfers?

It's not an easy task, because there are too many stores that want to be transferred.

What a dilemma!

In fact, now not only franchisees want to quit, but many entrepreneurs also want to quit.

More and more convenience store owners have revealed that they want to sell their assets and withdraw from the convenience store industry.

2

But even so, there are still a lot of people frantically pouring into this track.

Convenience stores are still expanding dramatically!

According to the data, in the past 10 years, the annual registration growth rate of convenience store-related enterprises in mainland China has been stable at 20%-30%.

In the first half of this year, more than 127,000 new convenience store-related enterprises were added, an increase of 26% over the same period last year.

In 2013, there were more than 60,000 chain brand convenience stores nationwide.

By the end of 2022, there were nearly 300,000 chain brand convenience stores.

Among the top 10 branded convenience stores, 7 are local brands in the mainland, and the rest are the three giants of Japanese convenience stores, Lawson, 7-Eleven, and FamilyMart.

A loss of 10 million, a lesson in blood and tears!

Look, Meiyijia convenience store topped the list in China!

By the end of 2022, the number of Meiyijia stores exceeded 30,000, a crazy surge of nearly 4,000 from 26,000 in 2021.

According to the latest data, in May this year, the total number of Meiyijia stores nationwide has exceeded 32,000.

In less than half a year, about 2,000 new stores have been added, and the development is really fierce!

With 5,641 stores, Lawson has become the king of foreign-funded convenience stores.

In 2021, Lawson bluntly said that the number of stores will reach 10,000 in 2025.

On the contrary, the whole family, which used to be the first foreign investment in the past, is now the last of the big three.

Competition in the industry is intensifying rapidly!

Many leading regional convenience store brands have quickly started cross-regional competition after completing the local enclosure.

Wuhan's Today has been stationed in 37 cities in Hunan, Henan, Guangxi, and Hainan provinces;

Taiyuan's Tang Jiu has crossed to 7 other cities such as Datong and Shuozhou in Shanxi, and more than 30 county markets;

Wenzhou's fullness has covered the entire East China region;

Hefei's neighbors went to Fujian;

Lawson opened the first batch of five stores in the fourth-tier city of Huainan last year;

The whole family has appeared in a number of third-tier cities in Zhejiang;

……

This trend will continue to grow in the future.

The industry as a whole is still evolving at a rapid pace, but individual businesses are not easy to do.

In the past two years, many convenience stores have been forced to close.

Convenience Bee has experienced a period of great industry turmoil such as layoffs and store closures.

Under the fierce competition, the average single-store sales of convenience stores in the country have been declining.

A loss of 10 million, a lesson in blood and tears!

From the perspective of penetration rate, the population covered by a single store in mainland China will be 4,751 people per store in 2022, and 7,033 people per store in 2021.

Under such a trend, the return cycle of convenience stores is getting longer and longer, and the risk of loss is increasing!

3

What's more, snack discount stores are also coming to steal the business of traditional convenience stores.

Snack outlets are really crazy!

This is a new format of snack, and the main focus is on cheap, non-routine hard discounts.

There is such a saying in the rivers and lakes:

One snack discount store can basically kill 3 convenience stores!

Let's take a look at these snack discount store giants first.

A loss of 10 million, a lesson in blood and tears!

In the past two years, they have been staking all over the country.

In 2018, the number of stores exceeded 100, and the latest data has exceeded 4,000.

Another major head brand snack Youming just exceeded 300 stores in June last year, and now there are more than 2,000 stores nationwide.

Zhao Yiming snacks have also exceeded 2,000 stores across the country, and the opening rate of 200-300 stores per month is soaring.

There are nearly 2,000 stores of Dai Yonghong snacks nationwide, and more than 1,000 snacks for wives and adults.

Discount cattle came to the Henan market in 2020 and currently has more than 200 stores in Henan Province.

These snack discount stores are even more gripping with small counties!

In a county town with more than 300,000 people in Jiangxi, there are 7 Zhao Yiming, 3 are Didi, 2 are orange blossoming, 1 snack is very busy, and 3 are locked, with a total of 15 snack shops.

And there is also a Zhao Yiming that is preparing to open.

In a small county town in Hunan, nearly 16 Dai Yonghong snacks have been opened, and nearly 12 snacks are very busy.

According to incomplete statistics, by the end of 2022, at least more than 10,000 snack discount stores are carving up the county.

It's no exaggeration to say that no one can walk out of a snack outlet empty-handed!

How cheap is it, exactly?

Take a look at the following picture:

A loss of 10 million, a lesson in blood and tears!

Note: The above data is for reference only

It is indeed cheaper than supermarkets and online channels, and it is almost sold at the purchase price.

Average expediency 2-5 years!

In this way, traditional convenience stores can only be suppressed by these menacing snack discount stores and closed everywhere.

There's really no way around it!

As of the end of last year, the total turnover of stores nationwide exceeded 6.445 billion yuan, and the company's annual comprehensive tax payment exceeded 100 million yuan.

You must know that last year, the sales of Juewei Food were 6.623 billion yuan, Qiaqia Food was 6.883 billion yuan, and Three Squirrels was 7.293 billion yuan, which was almost the same.

That's amazing!

The latest news, Hema and Yonghui supermarkets have also begun to transform into discount stores.

By the end of this year, the number of snack discount stores nationwide is expected to reach 2.2-25,000, with a sales scale of 700-80 billion.

Compared with 2020, it has increased by more than 10 times in 3 years, and the growth is still continuing!

4

Behind the prosperity, there is actually a hidden crisis.

Snack discount stores are expanding too fast and becoming obsolete too quickly.

While the major brands are opening up to join, they will definitely fall into the homogenization of serious face competition.

It is said that a well-known snack discount brand opened 200 stores at its peak, and now nearly 30% of them have closed down.

The "sweep away" snack shop joined by franchisees closed in a year and a half, with a loss of 300,000 yuan.

There are also people who join the "snack daddy" and decide to liquidate and close down after 10 days of opening.

In the first half of this year, some "Zhao Yiming" snack stores have issued a notice on the transfer of shops.

Under the channel change, changes are also quietly happening!

As snack discount stores continue to penetrate, the price war between door to door will become more and more fierce, and the competition for the core supply chain will become more and more fierce.

What's more, there is a big problem, the franchise fee is too expensive!

Excluding the store rent, franchise fees, security deposits, decoration fees, purchase fees, etc., the snacks are about 500,000 yuan, and Zhao Yiming is about 60-800,000 yuan.

The payback period has been further extended.

The commission fee of the franchise store will hurt you again.

This road is really not easy to walk.

Judging from the current situation, the industry is likely to increase its valuation by staking and eventually complete the market reshuffle.

At this time, if you devote yourself to the battlefield of snack discount stores with the dream of making a fortune, you are likely to unfortunately become cannon fodder.

Remember, the days of standing to earn money are gone, and bending over to pick up a steel hammer will become the norm!

Business is becoming more and more difficult, how should we keep our money bags, and what will be the economic environment next year?

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A loss of 10 million, a lesson in blood and tears!

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