How should hypermarkets be transformed to survive?

How should hypermarkets be transformed to survive?

How should hypermarkets be transformed to survive? In recent years, the changes in the retail market environment and consumer demand have made hypermarkets face the problem of transformation. Recently, the first supermarket renovation shop in Wuxi officially opened, and Wuxi became the first city to open the supermarket renovation. How should hypermarkets be transformed to survive?

How should hypermarkets transform and survive? 12021February 7th, the door of Wal-Mart Shenzhen Honghu Supermarket was closed. This is the first store opened by Wal-Mart 1996 when it entered China.

Experts said that this store is of great symbolic significance to Wal-Mart and the supermarket industry in China, and its closure also reflects the plight of the decline in the development of hypermarkets to some extent. In 20021year, the life of traditional supermarkets was quite difficult, the industry growth was weak, the performance accelerated, and the giants closed their stores frequently. Where is the way out for the traditional supermarket industry?

The overall performance has been accelerated.

It is understood that in 20021year, Wal-Mart closed at least 27 hypermarkets nationwide, and from 20 16 to 2020, Wal-Mart has closed 80 hypermarkets. Experts said that on the surface, the main reason for Wal-Mart's store closure is the expiration of the lease, but in fact, the overall growth of the hypermarket industry is weak, rents and labor costs are rising, and passenger flow is decreasing.

In fact, compared with other peers, Wal-Mart's business performance is still good. Thanks to the high growth of online sales and the performance of Sam member stores, Wal-Mart China's net sales increased by 18.8% in the third quarter, which was 16.5% higher than comparable sales.

The performance of some other supermarket peers is much uglier. According to the report on the operation of chain supermarkets recently released by China Chain Store & Franchise Association, in the first half of 20021year, the passenger flow of supermarket stores and the same-store income decreased, and the growth of income and profit was under pressure. In addition, the financial report data shows that in the third quarter of 2002 13, among the listed companies in13 supermarkets, 6 companies' revenues declined year-on-year, and the other 7 companies barely achieved single-digit growth. In terms of net profit, 8 listed companies in 202 1 Q3 13 suffered losses.

"202 1, the performance of supermarkets dominated by hypermarkets dropped sharply, on the one hand, because the base was relatively high last year, on the other hand, it was affected by channel diversion." Peng, secretary-general of China Chain Store & Franchise Association, told China Business Daily that in the past, hypermarkets were just needed channels, but in recent years, channels such as e-commerce and community group buying have sprung up, constantly dispersing the passenger flow of hypermarkets. At the same time, the business model of hypermarket format is also difficult to adapt to the changes in consumer demand. Peng said that the downward trend of supermarket passenger flow actually began in 20 12 years, but the decline was not obvious at that time. Supermarkets can also make up for the decline in passenger flow by raising the unit price of customers. Now, because consumers can choose more and more channels, the loss of customers is accelerating, which leads to the overall decline of supermarket income and profits.

The member store model is sought after.

202 1 under the general trend of the overall decline of the industry, member stores have become a hot word in the supermarket industry. The membership model with strong growth has been sought after, and some hypermarkets have transformed into member stores in order to find new business opportunities.

In June, 20021,Wumart's first Metro PLUS member store, which was transformed from a hypermarket, opened its doors to welcome guests. So far, Metro has opened a 19 PLUS member store. In 2002110/0, Carrefour China also changed its hypermarket on Chengshan Road into a member store, and announced plans to upgrade 100 of the 200 hypermarkets into a member store with paying members in the next three years. Supermarket brands such as Beijing Hualian, Renrenle and Yonghui also entered the field of member stores on 202 1.

However, with the transformation of traditional supermarkets to member stores, how to avoid falling into low-end homogenization competition will become a subject that the industry has to face. At present, member stores upgraded from hypermarkets in China basically imitate international giants in terms of goods and services. For example, roast chicken, Swiss rolls, mashed potatoes and other products have almost become the standard of these transformation member stores, and these products have always been the best-selling products of Sam member stores. Experts say that this simple imitation violates the concept that member stores provide unique and cost-effective goods and services for members to some extent.

"Imitating others is easy to fall into homogenization competition and it is difficult to maintain." Peng told reporters that traditional supermarkets mainly rely on suppliers in the process of operation, and the profits mainly come from charging channel fees to suppliers, and there are shortcomings in supply chain construction. The member store model needs to focus on the needs of members, establish its own supply chain, select high-quality and cost-effective goods and provide value-added services. The profit mainly comes from membership fees. Therefore, there are great differences between the two business models, and it takes a long process to transform from a hypermarket to a member store. He believes that in the process of transformation of member stores, traditional supermarkets need to make up lessons. While changing the business philosophy, we should strengthen the ability of commodity procurement and R&D and build an independent commodity supply chain.

Where are the future opportunities?

Pei Liang, president of China Chain Store & Franchise Association, said that at present, the characteristics of changes in the consumer market are mainly reflected in the aging population, family miniaturization and online shopping. Supermarkets are also changing from 1.0 version to 2.0 version, which is embodied in three alternatives: cost-effective instead of price competition, table substitution (3R product) instead of primary products, and omni-channel instead of pure offline products.

Peng believes that member stores are only an exploration of the transformation of hypermarkets at present, and the market capacity is limited. In the future, most supermarkets may be further miniaturized and serve specific customer groups through refined operations, such as online and offline integrated boutique supermarkets, community fresh supermarkets and so on.

In bleak winter, the supermarket industry is still bright. First of all, some leading enterprises in the third-and fourth-tier markets have grown against the trend. According to the survey of China Chain Store & Franchise Association, these regional enterprises have some characteristics: first, they should locate middle-and high-income people and avoid price competition; Second, the products are very rich, especially the processing of table substitutes, which requires large investment and good results; The third is the decentralization of stores and the high participation of front-line employees.

Secondly, the online and offline integration of new supermarket brands, such as Box Horse and Seven Fresh, shows the momentum of accelerated development. According to public data, in 20021year, there were more than 300 fresh stores in Boxma, including hundreds of newly opened stores in 20021year. Qixian Supermarket, which was relatively quiet in the previous two years, also revived on 202 1, and the number of newly opened stores accounted for about half of the total number of stores. According to the plan, while Qixian Supermarket is accelerating its expansion this year, the shape of its stores will also be changed to meet the market demand, and some large-scale stores will be opened.

Whether it is a regional leading supermarket with eye-catching performance or a new omni-channel supermarket such as Box Horse and Seven Fresh, its development momentum shows that the market demand for high-quality supermarkets is still great. "As long as China's GDP is growing, the retail market will certainly grow. In this process, if we can make adjustments to meet the needs of consumers, there will be opportunities. The key is to do it with your heart. " Peng believes that all walks of life in the retail industry are facing challenges. For supermarkets, in the process of upgrading and transformation, we should grasp the essence of retail, aim at consumer demand, do a good job in commodity management, establish a perfect supply chain, and achieve higher efficiency, lower cost and better experience than others.

How should hypermarkets be transformed to survive? In recent years, the change of retail market environment and consumer demand has made hypermarkets face the problem of transformation. Recently, the first supermarket renovation shop in Wuxi officially opened, and Wuxi became the first city to open the supermarket renovation. According to the relevant person in charge of RT Mart, 30 stores will be reorganized this year, and more than 70 stores will be adjusted according to version 2.0. The remaining 400 stores that are not included in the reorganization concept will be adjusted independently by the stores.

It is worth noting that in February 2002165438, Wal-Mart closed its first Wal-Mart store in Chinese mainland. Earlier, Wal-Mart responded to the Beijing News reporter that it was closed because the owner was about to upgrade the property as a whole.

In the past six years, Wal-Mart has closed nearly 80 stores in China. Correspondingly, the supermarket in Sam, a member store of Wal-Mart, is also expanding in China. In September, 20021year, as soon as the Sam member store landed in Shanghai, it set off a wave of membership shopping superstars. According to the data of Sam member stores, as of 202 1, 1 1, there are 36 stores operating in 23 cities, and it is planned to increase to 100 in the next eight years.

Wal-Mart's financial report for the third quarter of fiscal year 2022 revealed that Wal-Mart's revenue increased by 4.3% year-on-year and its net profit decreased by nearly 40%. Although the performance of hypermarkets is bleak, the income of Sam member stores shows an increasing trend. In the third quarter of fiscal year 2022, the sales of member stores in Sam increased by 13.9%, with a cumulative increase of 25% in two years, and the income of members increased by 1 1.3%, achieving double-digit growth for five consecutive quarters.

Zhu Xiaojing, President and CEO of Wal-Mart China, said at the new consumption series forum held in June, 20021+0/,that the domestic retail market has undergone tremendous changes since Wal-Mart entered China for 25 years, and then Wal-Mart will shift from its coverage ability to its ability to acquire and retain customers. "In this transformation process, choices and trade-offs are particularly important." Zhu Xiaojing's "trade-off" seems to correspond to both Sam member stores and Wal-Mart's traditional retail hypermarkets.

However, in recent years, the member stores in Sam, which are highly anticipated by Wal-Mart, have continuously exposed negative information.

At the end of 20021,it was revealed that Sam member stores had removed Xinjiang products from their shelves, which immediately aroused the indignation of Chinese people. Sam's move was also criticized by the People's Government of Xinjiang Uygur Autonomous Region. According to many local media reports, there has been a wave of "Sam members withdrawing their cards" in many parts of the country. A large number of former Sam members chose to quit their membership and stop buying any products from Sam after seeing the Sam store's actions against Xinjiang.

It is understood that the annual fee for ordinary members in Sam is 260 yuan, and that for distinguished members is 680 yuan. According to the data of member stores in Sam, as of 202 1, 1 1, the number of paid members in China has exceeded 4 million. If the card withdrawal tide of Sam members continues, it will cause a crisis to Sam's operation in China.

How should hypermarkets be transformed to survive? Last year, the chain retail stores closed down. According to incomplete statistics, as of 2002165438+February, Wal-Mart had only 360 stores in China market. The once beautiful hypermarket model is gradually declining.

In the face of high debt pressure and competitors' attacks, how should we adjust ourselves for transformation? This is also the most frequently asked question in the retail industry recently.

The tide of closing stores in hypermarkets

In August 2020, Wal-Mart Beijing Chaoyang Store also closed down.

In 20021and 65438+February, Wal-Mart Shenzhen Honghu Store, Wuxi Taihu Store, Chongqing Beicheng Tianjie Store and Taiyuan Sanqiang Road Branch successively issued "Closure Announcement".

202 1 12 Guangzhou Hyundai Department Store Haidu Store also posted a notice of closure.

Renrenle closed 52 stores in 20 14-2020, and closed stores in the first half of 200210/9.

Up to now, the news of closing stores in supermarkets is still intensive, and Carrefour, BBK and CR Vanguard have all made adjustments. However, while closing the traditional hypermarket, everyone plunged into the warehouse store or community store on the other side. On the whole, in the first half of 200219, the overall revenue of retail enterprises decreased by nearly 20%, and the profit decreased by 37%. Among them, the overall revenue of 16 hypermarket decreased from11775.8 billion yuan in 20 19 years to 1 145438+08 billion yuan, a decrease of 2.75%.

Nowadays, most of them have either become history or are closing their stores and shrinking their scale.

Qianjin members chuwu branch

In 20 19, when foreign supermarkets were losing ground, Costco entered China, and the grand opening ceremony even became a hot topic. The major chains seem to see hope from Costco, so the warehouse store model began to spread rapidly in China. Fudi member warehouse and Metro resumed membership, Box Horse also opened the first Box Horse X member store last year, and the hypermarket represented by Yonghui also opened the first warehouse supermarket in May 20021year. It's time for China warehouse-style member supermarkets.

Yonghui storage supermarket

However, some warehouses are not members, some members are not warehouses, and some warehouses are "semi-members" (non-paying members can also enter the venue to buy, and paying members enjoy privileges). The representatives are Yonghui, Carrefour and Metro. In short, "a hundred flowers blossom".

Fudi storage member store

Whether warehousing is the future trend, we should know that even the head players like Sam and Costco still don't have enough data to prove that this model has absolute advantages in domestic physical retail.

Therefore, whether a supermarket can be a warehouse store has nothing to do with whether it is a warehouse store or a paid membership system. The key is what value it can provide to consumers.

Store Reform: "Fine and Beautiful" and "Fireworks"

202165438+February, Guoduomei is adjusting its original strategy of "small profits but quick turnover". The most fundamental change is that the positioning of Guoduomei will shift from mass consumption to boutique route. Customer group positioning is more accurate, but the value of mining from a single customer is greater, that is, the ability to focus on family services is stronger. Behind a customer is a family, and "narrow" means "wide".

"Since the development of the fruit industry, freshness is not a high threshold, and appetite is not the first element pursued by consumers. We need to find the emotional appeal point behind the fruit. Guoduomei is developing a new generation of stores, which are expected to be listed in the first half of 2022. The new generation of stores is characterized by highlighting the "lifestyle proposal"

Fresh legends include Exquisite Beauty and Fireworks. Comparing the early shops of Xian Legend with those of the seventh generation, there is a strong feeling that a delicate girl has become a middle-aged aunt. I'm constantly tinkering with the details. These changes come from their market research, and they are still in the process of trial operation and are constantly improving. From several iterations of box horses, to category adjustment of clubs, to buying vegetables in pots, to fresh legendary fireworks, people are more and more like retailers.

By doing the details, being narrow and wide, we can see that these retail entrepreneurs are constantly thinking, constantly changing and making progress in order to do better retail.

How to reform hypermarkets?

In the post-epidemic era, the transformation of hypermarkets is essential, and many enterprises have turned their attention to boutique supermarkets, community supermarkets and convenience stores.

What needs to be considered is to meet the different needs of consumers from the perspective of consumers, meet the detailed needs and market environment, and further tap the value of consumers;

In the choice of goods, we constantly adjust from personalization and differentiation, and form new commodity advantages through differentiated commodity combinations.

Respond to the market changes of stores quickly, including category adjustment and the introduction of new products, and enhance the flexibility of commodity management in stores.

The whole cake was made very small, and more people shared the cake. The whole market is changing, the management of hypermarkets has not changed, and there are many red lines in hypermarkets, which cannot change with the changes of the market. The current market is no longer a business, it is no lower than anyone's price, and ultimately it is popular. What China's retail industry needs most is stimulation, but it can be invincible in the jungle-like market competition. What it needs is a perfect supply chain, strong commodity power and the ultimate cost performance.