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Editor: Little Sheep Says Entertainment
The last branch of Shanghai City Supermarket officially closed on April 16, 2024, bringing the final chapter to Shanghai's once-influential supermarket. The supermarket, which first entered the Shanghai market in 1999, was once known for selling more than 80 percent of imported goods, as well as "influencer" items such as homemade egg rolls.
Obviously, the demise of Shanghai's urban supermarkets is not accidental. According to public information, in 2017, Shanghai City Supermarket underwent major equity changes, and the major shareholders changed from the original Cui Yiying and Cui Yixiong to Ningbo Meishan Bonded Port Area Hongshi Investment Center (Limited Partnership), Ningbo Meishan Bonded Port Area Penghui Trailwalking Investment Center (Limited Partnership) and Cui Yixiong. Although the change of equity at that time did not cause much shock in the market, it changed the ownership structure of Shanghai City Supermarket and indirectly affected its subsequent operational decisions.
What really reversed the fate of Shanghai City Supermarket was a change of equity that occurred in the early morning of April 16, 2024. On the same day, Shanghai Tiantian Fresh Fruit E-commerce Co., Ltd., the major shareholder of Shanghai City Supermarket, withdrew, and the new shareholder, Shanghai Tianlian Trading Co., Ltd., held 90% of the shares, and the type of enterprise also underwent a major change.
The market's reaction to this sudden "white glove" takeover was not positive. Some consumers lamented this, but at the same time expressed understanding. Because in their view, the closure of urban supermarkets is undoubtedly a clear proof that physical retail has been affected by e-commerce. Especially with the rapid development of the Internet and the increasing choice of online shopping in the way of life and consumption, the survival pressure of physical stores is obviously much greater. Especially in high-end supermarkets, most of their goods are imported goods, high-quality ingredients, strict storage conditions and expensive logistics procurement costs make the difficulty of operation escalate instantly. The difficulties of Shanghai city supermarkets have become almost inevitable, and the closure of stores is also a foreseeable result.
The global retail industry is facing a period of deep adjustment, and the closure of Shanghai city supermarkets will inevitably raise doubts about the future shape of the retail industry. Especially in the United States, the news of bankruptcies and closures of brick-and-mortar stores is frequent, and the well-known Sells and Toys"R"Us have not been able to withstand the waves of bankruptcy, which has undoubtedly contributed to the market's concern about the future of traditional retail. Although the rapid development of e-commerce has brought tremendous pressure to the traditional retail industry, it has not completely replaced the demand for offline shopping. Offline brick-and-mortar retail stores offer a unique shopping experience that e-commerce can't fully replicate. From the ambiance of the environment to the physical display of the products, from the in-person try-on experience to the instant access to the goods, these are the unique features of offline shopping.
That's not to say that there is no need for transformation in the traditional retail industry. With the development of technology and the change of consumer habits, the traditional retail industry must find new ways to meet the needs of modern consumers. Among them, the new retail model that integrates online and offline has been proven in more and more practices, which can provide a convenient, efficient and service-rich shopping experience. Despite the current tough environment in the retail industry, the development of the industry is not a zero-sum game. Instead of worrying about the sky, it is better to actively look for new ways of development. The medium and long-term development of the industry requires us to have a cool head and explore and respond to changes in the industry with practical actions. The closure of urban supermarkets is more of a wake-up call for us to adjust our strategic thinking in time to adapt to the new market environment.
Although Shanghai City Supermarket has left us, its responsible performance towards consumers is still praised by the public in the market. Consumers can search and follow the official account "CITYSHOP" on the WeChat platform, make an appointment according to the designated process, and then go to the designated location to redeem their unused shopping cards. This is a very positive attitude, with great respect for the feelings and rights of consumers. Such a move not only helps consumers monetize their unusable shopping cards, thereby reducing losses caused by store closures, but also demonstrates the responsibility of the city supermarket itself. For a company that has decided to withdraw from the market, there is no direct economic benefit from completing such after-sales service, but it can reflect its respect and attention to consumer rights and interests.
In a market economy, the relationship between enterprises and consumers is not a simple buying and selling relationship, but a long-term cooperative relationship based on trust and responsibility. While withdrawing from the market, the city supermarket is undoubtedly showing the market its sense of responsibility and public spirit as a company. Although the city supermarket eventually withdrew from the retail market, its move has taught all businesses an important lesson. At all times, we must put the rights and interests of consumers first, and no matter what kind of difficulties enterprises are facing, we need to insist on fulfilling our responsibilities. This is a lesson that every business, no matter how big or small, strong or weak, needs to keep in mind. As for the former leaders, this is also the last decent ending they give to the entire market.
What enlightenment does the closure of Shanghai's city supermarket have for the entire market? The success of the city supermarket was undoubtedly unique in the retail market environment at that time. However, when the market environment underwent a major change and a new form of retail dominated by e-commerce rose, urban supermarkets failed to transform in time, and finally did not get rid of the dilemma of traditional retail. Even in a difficult market environment, excellent companies may find their own living space.
In response to the needs that consumers cannot meet when shopping on the Internet, there is still a lot of market space for physical retail. The gradual rise of new retail is trying to organically combine online and offline to provide a better consumer experience. In the process of operation, enterprises should not only consider their own interests, but also pay attention to social benefits. After drastically reducing stores or even closing them completely, city supermarkets have also handled consumers' after-sales problems responsibly, which has undoubtedly won them a reputation.
Although the city supermarket has withdrawn from the market, the value of its existence can still be evocative. I hope that all retailers will be discerning, find their own positioning, and bring more surprises to consumers. Even in the face of difficulties, we must be like a city supermarket, maintain dignity and stick to our original intention, so that we can find our way in the unpredictable market.
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