Fat Donglai can't help all supermarkets, and another old supermarket has fallen, and a notice has been issued to close the store

Liu Xian said

2024-06-24 21:45Published in Guangdong

In 2024, Fat Donglai has successively adjusted some stores of BBK Supermarket and Yonghui Supermarket, and the traffic and sales of these supermarkets have skyrocketed after adjustment. In recent years, with the rise of e-commerce and drastic changes in consumer shopping habits, physical supermarkets have become increasingly difficult. Coupled with the rising rents and labor costs, as well as the complexity of supply chain management, many well-known supermarket brands in China have fallen into a wave of store closures, and the news of continuous losses and even closures is endless.

Looking back on history, the concept of Chinese supermarkets first sprouted in the 80s of the 20th century, and after the introduction of foreign retail models, it quickly took root all over the country. In the 90s, the supermarket industry ushered in its golden age, and almost every city's main street can see a variety of supermarkets, which greatly enrich the daily life of citizens and promote the prosperity of the consumer market with a rich variety of goods, relatively transparent prices and a novel experience of self-service shopping.

After nearly two decades of rapid expansion, the supermarket industry has entered a mature period, and market competition tends to be white-hot. At the same time, consumers' shopping habits have changed radically, and more and more people are inclined to shop online to enjoy its convenience, price advantages and rich selection of goods. In the face of this series of challenges, supermarket companies have begun to seek a differentiated way of operation, improve operational efficiency through refined management, and strengthen brand characteristics, in order to stand out in the fierce market competition.

In April 2024, Shanghai's Cityshop announced that it would cease operations entirely, stating that "in recent years, Shanghai's cityshop has struggled to operate, and despite a variety of self-help measures, it is still difficult to continue." Now the company has decided to dissolve and decide to stop the operation of all stores in Shanghai Chengchao. The company has come to this point, and it is also an extremely helpless choice, and I believe that everyone is emotionally unwilling to see this ending. ”

According to public information, Shanghai City Supermarket was founded in the late 90s and has gone through 25 years. It is well-known in Shanghai for its international cuisine, focusing on high-end imported boutiques, and its stores are mainly opened in high-end commercial districts and luxury residential areas. Operating tens of thousands of goods, of which more than 80% are imported from abroad, it used to be the largest supermarket in Shanghai specializing in imported food and daily necessities, with meat products, wine, chocolate candy and organic vegetables as its characteristic commodities. Provide customer-centric one-stop shopping and catering services to meet different levels of consumer needs. There are also regular food festivals with exotic international flavors, special food tastings, and natural picking festivals.

With the continuous rise in commercial real estate rents, coupled with the increase in staff salaries, logistics, supply chain management and other costs, it has become difficult for Shanghai city supermarkets to maintain profitability in the long term. In addition, Shanghai's retail market is extremely fierce, with competition from local boutique supermarkets and large supermarket chains, as well as pressure from international brands and the onslaught of online.

Market Analysts' Comments: The wave of supermarket closures is the result of a combination of factors, including the challenges of changes in the external environment and internal mismanagement. In the face of this situation, supermarket operators need to continuously innovate their business models, optimize their cost structure, and improve their service experience to adapt to the new normal of the market. The case of Fat Donglai proves that through innovative thinking, fine management and customer-centric service strategies, physical supermarkets can still rejuvenate and turn around against the wind.

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