Chinanews client, Beijing, August 20th (Reporter Xie Yiguan) "Another Wal-Mart store has chosen to close."

　　A few days ago, Wal-Mart Beijing Chaoyang store announced that it will be closed on August 10.

So far, Wal-Mart has 10 stores left in Beijing, including 7 Wal-Mart shopping malls and 3 Sam's Clubs.

　　In recent years, store closures have become Wal-Mart’s routine actions.

According to media statistics, only since 2021, the number of Wal-Mart stores closed has reached double digits.

From 2016 to 2020, Walmart closed 80 domestic stores in four years.

　　With the removal of blue signs, this 25-year-old international supermarket giant is experiencing a period of "slimming".

Data map: Wal-Mart Shopping Plaza.

"The supermarket format has reached the moment of life and death"

　　Regarding the reasons for closing the store, Wal-Mart explained that the lease term has expired.

　　"After Wal-Mart entered China in 1996, it has acquired properties for 20 years. After maturity, the rent may increase by several hundred times, and profits will be greatly discounted." Hu Chuncai, general manager of Shanghai Shangyi Consulting, told a reporter from Chinanews.com.

　　Hu Chuncai believes that the rise of e-commerce and community group buying are also "cannibalizing" the living space of Wal-Mart's offline stores.

　　"Affected by the community group buying, the supermarket format has reached the darkest moment of life and death." BBK Chairman Wang Tian said at an industry conference in April 2021.

　　A research report issued by Shanxi Securities in May pointed out that the performance of listed companies in the supermarket industry has declined significantly since the second half of 2020.

In the first quarter of 2021, the net profit attributable to shareholders of the parent company was 734 million yuan, a year-on-year decrease of 65.20%.

　　"Beginning in the second half of 2020, Internet giants have entered the community group buying track. In the early stage, they used low-cost subsidy strategies to seize the market, which had an impact on the passenger flow and sales of supermarket hypermarkets. Some vertical category fresh specialty stores gradually penetrated into the community. It also has a further impact on the performance of supermarkets and hypermarkets." Shanxi Securities explained.

Data map: In Nanjing City, Jiangsu Province, citizens buy goods at Xinjiekou Wal-Mart Supermarket.

Photo by China News Agency reporter Yang Bo

　　Wal-Mart’s financial report showed that revenue for fiscal 2021 was US$559.2 billion, an increase of 6.7% year-on-year, and the net profit attributable to shareholders of the parent company was US$13.51 billion, a year-on-year decrease of 9.2%. Among them, the net profit loss attributable to shareholders of the parent company in the fourth quarter of 2020 US$2.091 billion.

　　Some analysts pointed out that although Wal-Mart’s financial report did not separately announce its results in China, Wal-Mart, which ranked fourth among the top 100 Chinese supermarkets in 2020, will naturally be impacted by the new format.

Will Wal-Mart become the next "Carrefour"?

　　In the 1990s, international hypermarkets rushed to enter China first, but with changes in consumer demand, in recent years, foreign-funded supermarket chains such as Carrefour China, Metro China, and Tesco have "selling themselves" one after another.

　　In April, a rumor appeared that Wal-Mart sold about 130 stores to Wu Mart. Although both Wal-Mart China and Wu Mart denied the news, it also made the outside world more concerned about Wal-Mart's situation.

　　In Hu Chuncai's view, an important reason for Wal-Mart's successive closures of hypermarkets is that the life cycle of hypermarkets has come to an end.

　　"With the improvement of national income and living standards, new changes in consumer demand, offline supermarkets also need to change, from the original "selling goods" to the current "selling life", to provide Chinese people with new life solutions ."

　　Realizing this, Wal-Mart has significantly accelerated the expansion of Sam's Club in China in recent years. From 2017 to 2020, it will add 16 stores in China.

As of now, Sam's Club has 33 stores in China, and by the end of 2022, it is expected to reach 40-45 stores open and under construction.

Data Map: Membership Registration Office of Sam, a paid membership store.

Photo by Liu Xian

　　In the face of the menacing Costco and Hema X member stores, Wal-Mart is also "unceremonious."

　　Sam's Club Asia’s largest flagship store will be opened in Shanghai. Recently, the promoters put the tasting and member recruitment locations downstairs in the Shanghai Hema headquarters. Netizens ridiculed them: I think the business war waves are tricky, intriguing, and true. The commercial battle of the company is to put the stall under the office building of the opponent's headquarters to grab members.

　　In addition to developing Sam's club stores, Wal-Mart and JD.com also launched a "three links" strategy, invested in Dada Group, opened community stores, tested the water front warehouse and community group buying.

　　These attempts, whether they succeed or fail in the future, show that the world's largest company is trying hard to adapt to the consumer needs of the Chinese, and avoid being "slapped to death on the beach" by the waves.

　　Have you ever been to Wal-Mart to buy things and how do the goods and services feel?

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