What does it want?
Editor’s note: This article from the micro-channel public number “ Commercial real estate headline” (ID: Dtoutiao), author Mia.
Walma, which began in 1962, has never changed in the main body of LOGO. The blue English letter Walmart is followed by an orange sun graphic. The “blue-orange” combination travels through time.
But now, in China, this combination is mixed with a bright green. It is the symbol of the Wal-Mart Community Store (formerly known as Huixuan) and is the vanguard of Wal-Mart’s new stores.
“In the next 5-7 years, 500 stores will be opened, including Wal-Mart stores, Wal-Mart stores, Sam’s Club, and Yuncang.” The “small shop” represented by the community store has become the most eye-catching spot in the store plan.
Gu Jianzhang Senior Vice President, Real Estate Development, Wal-Mart China Image Source / Wal-Mart Provided
Gu Jianzhang repeatedly emphasized that “opening a community store will be one of the main directions”. He is Senior Vice President of Real Estate Development at Walmart China. Five years ago, when he joined Wal-Mart (US headquarters), Wal-Mart fine-tuned China’s strategy, and the hypermarkets slowed down and overweighted Sam’s member stores.
After five years, the Sam’s Club has accelerated, but the community store that “opens at the door” has become a new killer for Wal-Mart.
In the early 1990s, driving to Wal-Mart in China was a matter of laughter for most people dreaming. Now, with the slippers and the big pants, you can see the Wal-Mart “small shop” when you go out for a few hundred meters.
When Wal-Mart is no longer “unreachable”, as familiar as the neighboring friends, its charm index geometry?
Community store upgrade, aiming at busy families
“If you can’t meet the needs of your customers, a company can die at any time.
”
In the group interview, Gu Jianzhang quoted a Wal-Mart executive.
He believes that the current rapid changes in Chinese consumer demand, people are getting busy.
From 2016 to 2025, demand for bulk consumption decreased, and replenishment consumption and fast consumption increased by 44% and 22% respectively.
Based on this, Wal-Mart’s various formats have refocused on the “busy family” customer base. The Wal-Mart community store at the doorstep is the main store opening direction in the future.
Wal-Mart Community Store is a community fresh-keeping supermarket owned by Wal-Mart. The store area is generally 600~1000 square meters. In 2018, the Wal-Mart community store opened eight stores in one breath.
But due to “supply chain efficiency restrictions,” there are no new stores this year. Shenzhen Bao of the commercial real estate headline store yesterday
The Xin’an 5th branch of An District has been upgraded.
is different from a year ago – the door is grass green, the two pillars in front of the door are the iconic Wal-Mart Blue, the upgraded community store from the door to the store’s overall VI are fresh green Master Vision.
Image Source/Commercial Property Headline Shooting
The internal adjustment of the store clearly emphasizes the emphasis on fresh weight. Reflected in:
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SKU: The variety of products has been reduced from more than 8,000 to more than 6,000, while fresh (meat, poultry, milk, and vegetables) has increased by 20% to more than 800. Among them, fruits and vegetables account for more than 50%.
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Area: The overall area remains unchanged, and the area of the fresh area has increased by about 25%, adding to the live fish and seafood categories. Because the operation found that in Shenzhen, live fresh people like to buy, children like to watch.
and each live fish carries a traceable QR code “ID card”, scan the code to see the product name, shelf life, storage conditions, suppliers and other lettersinterest.
Image Source/Commercial Property Headline Shooting
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Own Brand: It was seen at the scene that this year’s “Marketside” private label covers fresh meat, vegetables, cooked food and baking. The number of self-owned brand SKUs, Wal-Mart did not disclose.
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Mobile: The fresh area is located at the beginning of the drive line, attracting people for the first time. Because of its high frequency, just needed, high flow characteristics.
Image Source/Commercial Property Headline Shooting
Of course, the Wal-Mart community store has also done some “adapted to local conditions” action.
Data research shows that there are many communities and schools around the store, mainly for busy family-type customers, including some middle-aged and old people. There are posters at the entrance, customers over 60 years old, you can get 5 yuan “Community Senior Coupon” when you buy 58 yuan.
On the selection, the family is mainly demanded, and rotates every half month.
A list of promotional items.
According to Gu Jianzhang, the current site selection of community stores includes the following:
Small business district, main road, near residential area, there are 30,000 to 40,000 permanent residents within 500 meters.
Offline purchase is convenient, online orders are small, and sorting and distribution is more efficient.
At present, 8 community stores are located in Guangdong, in Shenzhen, Guangzhou and Dongguan. “The future will open to the whole country.” 
The hypermarket and Sam store also play “slimming”
In addition to community stores, Wal-Mart’s other formats are also getting smaller, and the location of stores is closer to consumers.
The Wal-Mart hypermarket has been reduced by 40% to 50% from the original 10,000 square meters. Such “compact” stores have already landed in Wuhan (Yangjiawan Store) and Kunming (Jinwa Road Store) as early as 2017.
The Wal-Mart Chengdu Shengbang Street store opened at the end of 2018. The characteristics of “smaller and closer” are obvious. The store has landed in a “new generation store” with an area of only about 5,000 square meters. Although the area is “slimming”, it has expanded the rental area to 4000m2, and selected nearly 80 specialty brands based on catering and community services to form a rich business complement.
In terms of site selection, unlike the “suburban principle” in the early days of China, Wal-Mart Chengdu Shengbang Street Store is almost “enclosed” by residential communities.
Baidu map shows that there are densely distributed Tianhe. Triumph Nancheng, Zhonghai Lanting, China Resources Phoenix Phase II, Ducheng Yalongju, Langshi Xihuafu, Poly Lily Garden, Qingfeng Times City and other residential areas. Surrounded by living and a strong business atmosphere.
The changes in China’s commercial real estate and retail environment have fundamentally determined that Wal-Mart stores need to be “slimmed down”.
On the one hand, the urbanization process is accelerating, the land price is soaring, the hypermarket rent is high, and Wal-Mart, which is almost self-sustaining property, expands the store.
The difficulty is increasing.
“Some places where we opened our store 20 years ago are relatively partial, like Longhua and Longgang in Shenzhen, but now they have become a core area.”
Gu Jianzhang said.
In addition, in the new retail era where experience is focused on, the appeal of pure retail hypermarkets to shopping centers is waning. In 2018, Winner Big Data analyzed the format and brand adjustment of typical shopping malls in the first and second tier cities (161 and 222 respectively):
The traditional “pure retail” format of first-tier city shopping malls was down 2.7%, and the second line was down 2.6%. In this type of business, the dominant position in shopping centers has been further weakened due to the narrowing of profit margins and the decline in efficiency.
Walmart Shenzhen Longgang Jianshe Road Branch Image Source/Walmart Offers
Gu Jianzhang used Shenzhen Longgang Jianshe Road Branch as an example to introduce more details of the transformation. After the store was remodeled in September, it introduced many elements of the times. E.g
,
In the leased area, we introduced the Vipshop Fashion App Store, as well as the “National Trends” fashion stores such as Li Ning, Anta and Cotton Age.
In the new generation of newly opened and remodeled stores, the proportion of self-service cashiers and scan code purchases has increased, while some manual cashier channels have been retained to meet the diverse needs of consumers.
In addition, more than 10 Wal-Mart stores in the country have introduced Ruixing Coffee. In the future, Wal-Mart stores will introduce more international brands.
And Sam’s “slimming” program (small 20%) is proposed by Mr. Wen Ande, President of Sam’s Club China in 2017. Gu Jianzhang said yesterday,
“At present, Sam has 26 stores. By 2022, Sam has opened and there are 45 stores in the building.”
This means that there will be more than 70 Sam’s total stores. However, Gu Jianzhang added,
“The Sam’s Club is still quite special, and the area is large enough to guarantee a warehouse-style experience.
Source| Public Reports Cartography | Commercial Real Estate Headlines
Centering on Shenzhen, focusing on Guangdong base camp
At the beginning of China, Wal-Mart moved to the whole country with Guangdong as the center. Twenty years have passed, it addsGreat attention to the Guangdong base camp.
Based on the data of the switch store in the past three years, the commercial real estate headline analysis found that Wal-Mart has closed 35 stores in key areas, accounting for 53% of the total number of stores, followed by Northeast China and North China.
At the same time, the new store expansion strategy turned to South China (42%) and Southwest (31%), and the proportion of stores in East China and North China was less than 2%.
Special statement: Non-corporate financial disclosure data, data collected by Winnet.com from public reports, incomplete statistics
Special statement: The above data is not disclosed in the official Wal-Mart earnings report and is publicly collected by Winner.com and is incomplete statistics
In early August, Wal-Mart China President and CEO Chen Wenyuan said that in the next five years, Wal-Mart plans to add 100 new stores in Guangdong, including Sam’s member stores, shopping malls, community stores and Yuncang. .
Corresponds to the “500 stores in the next 5-7 years” announced yesterday, which means that 1/5 new stores will open in Guangdong. In fact, this Guangdong “acceleration run” has laid the groundwork.
In March 2015, the National Development and Reform Commission, the Ministry of Foreign Affairs, and the Ministry of Commerce formally proposed the construction of the Guangdong, Hong Kong, and Macau Bay Area. The following year, Wal-Mart invested 700 million yuan to build China’s largest fresh cold chain warehouse in Dongguan, the largest single investment in China in 23 years.
At the beginning of this year, the Dongguan Fresh Food Distribution Center was officially put into operation, fully supporting the development of stores in Guangdong. Wal-Mart’s emphasis on the Guangdong market is self-evident, and Shenzhen has become a top priority.
Shenzhen is the birthplace of Wal-Mart in China and its innovation base. Twenty-three years ago, China’s first Wal-Mart shopping plaza and the first Sam’s Club were settled in Shenzhen. The first community store in April 2018 was also hatched in Shenzhen.
From an insignificant fishing village to the top ten in GDP, Shenzhen has only used 13 years. In the past five years, the per capita GDP of the four major first-tier cities, Shenzhen
Performance is also the most eye-catching
From 149,500 yuan to 193,000 yuan, the average annual growth rate is 6.6%.
The concept of full development of business, high income, and open lifestyle is the soil of the paid membership system.
Today, the Shenzhen government’s endorsement will allow Wal-Mart to better capture
The policy dividend for the development of Dawan District in Guangdong, Hong Kong and Macau.
Source | National Bureau of Statistics Cartography | Commercial Real Estate Headlines
In the beginning of November, meeting with Shenzhen Mayor Chen Rugui, Chen Wenyuan made it clear that Wal-Mart China will continue to increase investment in Shenzhen.
Specifically: In the next five years, Wal-Mart China plans to add 60 stores in Shenzhen, including Wal-Mart Shopping Plaza, Wal-Mart Community Store and Sam’s Club Store. Among them, Sam’s member stores will reach seven.
At present, 26 Sam’s member stores are distributed in 20 cities across the country, including 3 stores in Beijing and Shenzhen, and 2 stores in Shanghai and Suzhou respectively.
In the next five years, the number of total stores in Shenzhen will reach seven, which means that Sam will strengthen Shenzhen Base Camp at the speed of one store a year.
Source | Wal-Mart China Official Website Cartography | Commercial Real Estate Headlines
It is foreseeable that the city of Shenzhen will continue to be Wal-Mart’s most determined base camp. The step-by-step advancement of the “small store” strategy will accelerate its integration with the city and its intimacy with the crowd.
When people go to Wal-Mart, they are “naturally” when they squat down the convenience store downstairs.
It belongs to another high-light era, and it will come formally.