Situation 1: Traditional supermarkets go left, membership supermarkets go right
Due to the popularity of Sam's Club, Costco and Pangdonglai, traditional luxembourg whatsapp number data 5 millionhave closed stores on a large scale.
1. What is the underlying logic behind traditional supermarket store closures?
To sum it up in one sentence, traditional supermarkets have become increasingly distant from the needs of this era and have deviated from the essential demands of consumers.
In the words of Meng Fanzhong, chairman of Buyote, deviation from basic business logic and drifting further and further away from consumers are the fundamental reasons for the decline of China's chain supermarkets.
There are roughly a few points:
(1) Excessive stock. From the supply side, the supply of supermarkets is too large, resulting in a situation where there are too many supermarkets and too little supermarket space. Previously, they could cover the surrounding communities within 5 kilometers, but now that shopping malls have opened intensively, the radiation space has been greatly compressed.
(2) Food safety. China’s food safety environment is worrying. Pre-prepared food, additives, and unscrupulous merchants are a combination that is destroying people’s body and mind. In addition, the ineffective food safety supervision makes people even more worried. It has even penetrated into campuses. The traditional supermarket system has no food safety testing standards and measures. Without this firewall, unsafe snacks, food, meat, and vegetables are put on the shelves in large quantities. How can people buy them with confidence?
(3) Online e-commerce. Retail e-commerce and live streaming e-commerce can satisfy young people’s reliance on physical businesses. Local life e-commerce allows people to order various instant services without leaving home, such as takeout, snacks, or medicines.
