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In the past two years, new retail brands such as box horses and super species have risen rapidly, and the development of traditional hypermarkets has been seriously affected. At the end of last year, the market format of the market was also raised. For example, Box Horse Market of Box Horse, Wu Yue Super Market of Xincheng Holding, and Yasheng Market of Agile, the market share of the supermarket was further eroded. Under the double attack of local supermarkets and the new retail format of “supermarket + catering”, foreign supermarkets are even more difficult, and the pace of expansion is also slowing down. Some companies such as Carrefour and Metro are choosing to sell Chinese business.

Now, the structure of Chinese consumer groups has changed. After 80s and 90s, it has become the “main force” of consumption. They prefer to spend online, while the strategy of foreign brands is slow to adjust, and online and offline integration channels are not established in time. And resource allocation, it is gradually abandoned.

✦Multiple supermarket sub-brands are “stagnant”, Suguo, Olé “contrarian expansion”< /p>

Since this year, the pace of supermarket opening has slowed significantly, and the number of stores opened by multiple brands has declined year-on-year. In the third quarter, this trend has become more apparent. Several supermarket sub-brands have suspended their stores, such as Wal-Mart’s selection and Sam’s member stores. There were one or two new stores in the same period last year, and there were no new stores in the third quarter of this year.

When multiple supermarket sub-brands stopped expanding their stores, China Resources Vanguard’s Suguo and Olé “contrasted the trend” and opened four stores. where:

• Olé has not opened a new store in the first half of this year, and opened four stores in the third quarter;

• Suguo did not detect the arrival of new stores in 2018. From January to September this year, five new stores were opened.

Source: Olé Boutique Supermarket

It is worth noting that since the beginning of this year, China Resources Vanguard has continued to shrink the layout of hypermarkets, and has handed over five hypermarkets in Beijing and seven stores in Shandong to Wumei and Jiajiayue. At the same time, China Resources Vanguard began to exert other formats outside the hypermarket, so it is not surprising that Olé accelerated the opening of the store this year.

✦The expansion area has its own focus, and BBK moves to East China

Although the pace of supermarket opening has been adjusted, the layout of the store is similar to the past:

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In addition to opening a store, the pace of closing a supermarket has also slowed down. From July to September, 4 supermarket brands closed 4 stores, and the total number of closed stores and supermarket brands that closed stores were significantly reduced.

The third quarter , China Resources Vanguard closed 2 stores, among which Shenyang Minghua store will be upgraded to Wanjia MART, which will be re-launched at the end of the year; Lijing store is “due to the expiration of the contract, the owner has another purpose “Close instead.

Walma, which has been frequently closed for store adjustments, closed only one store in the third quarter, and the number of closed stores dropped significantly compared with the same period last year.

Aeon closed a 6-year-old store in Huizhou, and some speculated that the store was closed or related to poor location and insufficient parking.

03

Industry competition is increasing
  Foreign supermarkets are “two days of ice and fire”
 

✦Foreign supermarkets are both hot and cold Days

On September 27, Suning Tesco announced that it has completed the acquisition of Carrefour China. Suning also announced that Tian Rui, Vice President of Suning Tesco, will become the CEO of Carrefour China. In addition to the CEO and CFO, the other core management of Carrefour China appointed will be promoted from Carrefour’s existing management cadres, Carrefour China’s brand and operational future. It will also remain independent.

In October, the much-watched Metro China sales rumors also ushered in the final chapter, and the takeover was a good thing. Upon completion of the transaction, Wumart Group will hold 80% of the joint venture between the two parties, Metro will continue to hold 20% of the shares, and more will become Metro’s China technology partner, the transaction is expected to be in the second quarter of 2020 at the latest. Complete delivery. Metro’s China President Kant said that after the acquisition, Metro’s management and staff structure will remain unchanged, and the store will remain the same as the Metro brand. In the future, the Metro will continue to develop new stores in the Chinese market.

Source: Wumei Supermarket Weibo

It is not difficult to find that although Carrefour and Metro have sold most of their Chinese business to Chinese companies, the store brand and management team have not changed in essence, meaning they have not given up the Chinese market. “Selling” is more about finding Chinese partners and using their technology to help them digitally transform.

The CP Lotus, which has been struggling for many years on the edge of the loss, will eventually escape the fate of delisting. The effective date of its common stock releasing on the Hong Kong Stock Exchange is October 28, 2019. Like many foreign-funded supermarkets, the failure of CP Lotus has a great relationship with the “turning around” too slowly. CP Lotus has launched shopping malls, convenience stores, boutique supermarkets, lifestyle supermarkets and other formats, but these stores are slow to expand, so the transformation has little effect.

However, at the same time that major foreign supermarkets staged a “great retreat”, Costco chose to enter the Chinese market. The first store was officially opened in Shanghai on August 27. Due to the large passenger flow, the mall opened for a long time. Suspension of business, starting from the next day, the store is limited to 2,000 people. According to the data, Costco entered China for 37 days, and the number of registered members reached 200,000, setting a record for 35 years. However, with the sale of Maotai and the withdrawal of Hermès counters, Costco’s highlights are fading, and there is a “Membership Card Retreat”. It is not known whether the “foreign monk” can “read the classics” in China.

✦Local supermarkets are now “easy to change” < /strong>