Carrefour's adjustment contraction continues. On March 3, a reporter from Beijing Business Daily visited the Carrefour Chuangyijia store and saw that there was a closure announcement pasted at the door, most of the shelves in the store were empty, and many unsold goods had been packed with tape. The Tron Plus store is Carrefour's first store in the Chinese mainland market and the first true hypermarket in Chinese mainland. The analysis pointed out that hypermarkets can no longer adapt to market demand, and optimization measures such as creating diversified formats and increasing the proportion of fresh food may alleviate the pressure to a certain extent.

| Store |

When packing is in progress, prepare to withdraw the store

Carrefour Chinese mainland first store entered the countdown to closure. On March 3, a reporter from Beijing Business Daily visited Carrefour Chuangyijia store and saw that most of the shelves in the store were empty, fruits, dry goods, cooked food and other areas were no longer on sale, and some unsold eggs, daily necessities and other goods were stacked together and packed with tape. The "big clearance" shelves placed near the cash register are marked with "26 folds" discounts, mainly drinks, beverages, etc.

A staff member at Carrefour Chuangyijia said that the situation has been going on for some time, and "it will be closed after a few days." According to the closure announcement posted at the door, Carrefour Chuangyijia store will be closed from March 3 due to the expiration of the lease, and the Carrefour shopping card in the hands of consumers can be used in other stores in the Beijing area.

In response, the relevant person in charge of Beijing Carrefour responded that when the lease of the store expires, the rent will rise, and Beijing Carrefour will not renew the lease for comprehensive considerations. Hypermarkets can no longer enjoy the previous market dividends, before the rise of e-commerce, supermarkets can bring considerable consumption traffic to the surroundings, so the corresponding rent, property will be for supermarkets to implement convenience measures, now more than ten years later, many supermarkets face re-renewal with the owner, and the corresponding rent, property and other dividends are no longer there, for commercial considerations, many supermarkets have entered the period of closure due to the expiration of the lease.

Ms. Lin, who lives nearby, took advantage of the weekend when the family went shopping at Carrefour Chuangyijia store, and she said, "Although there are not many discounts, the shopping card in my hand still has to be used quickly." The Beijing Business Daily reporter saw that Ms. Lin's family pushed three small carts full of them, one of which contained three bags of rice and two bottles of soy sauce.

It is worth noting that Carrefour Chuangyijia store opened in 1995 with an operating area of 8000,<> square meters, which is Carrefour's first store in the Chinese mainland market and the first real hypermarket in the Chinese mainland.

| Competition |

Community stores grab food and offline pressure

Changes in consumption habits and rising rents are the straws that "crush" hypermarkets. The "exit" of various community stores has also encroached on the market of hypermarkets. Many chain enterprises such as Shouhang Supermarket and Wumart have opened small community stores to seize the market. From the perspective of the operation of a single store, the main focus is "small but fine", providing consumers with higher quality consumption, and attracting surrounding consumers through neighboring communities.

The Beijing Business Daily reporter learned from industry insiders that the industry is also cultivating community stores in subdivided categories such as community seafood stores, and new stores entering the market will further divide the market.

Previously, the relevant person in charge of Shouhang Supermarket mentioned that small shops have basically run out of profit mode, and Shouhang Supermarket plans to open more small stores in the future. It is reported that in 2022, the small store under Shouhang Supermarket will record sales of 8,<> yuan on the day when the third store in Beijing officially opened.

The emergence of small business outlets is closely related to changes in consumption habits. The pace of urban life has accelerated, consumption has shown fragmentation, and the convenience brought by small community shops has captured consumer demand.

In 2022, the Beijing Municipal Bureau of Commerce also issued Several Measures to Accelerate the Construction of a Quarter-Hour Convenient Living Circle to Promote the Transformation and Upgrading of the Life Service Industry. It mentioned that in 2025, the city will achieve full coverage of a quarter-hour convenient living circle, form a diversified, diversified life service system covering urban and rural areas, and put the construction of "doorstep consumption" facilities on the agenda.

| Opportunities |

Product optimization seeking "price-performance ratio"

In the face of market competition and changes, Beijing Carrefour will also make adjustments, the above-mentioned Beijing Carrefour relevant person in charge pointed out that Beijing Carrefour's stores are being upgraded, and 9 stores have completed the upgrade. Stores connect with new suppliers to increase the supply of goods. In addition, the indoor environment of the store is optimized, and the aisle distance between the shelves is widened to enhance the consumer's experience of visiting the store. At the same time, Carrefour Supermarket will also increase the proportion of private brands of goods in the mall to further enrich the product range.

Guo Tao, an angel investor and well-known Internet expert, mentioned that the future of the retail industry is "new retail". New retail has redefined and shaped consumer goods, consumer behaviors and consumption places, and these new formats that combine multi-channel, multi-service, demand- and experience-centric, and technology-driven will have a profound impact on the retail industry and are expected to become an important attempt to lead the transformation of the retail industry.

Wang Peng, a researcher at the Beijing Academy of Social Sciences, pointed out that contemporary consumers pay more attention to personalized needs, and "boutique" will become the transformation direction of retail stores. In the past, hypermarkets were known for their long industrial chains and supply chain lines and multiple layers, but now these have become disadvantages. At the same time, the single store volume is large, and there are certain difficulties in rapid transformation. Wang Peng believes that the location of hypermarkets needs to be adjusted, and there is still a certain market for location in locations with more middle-aged and elderly people. At the same time, stores need to optimize the commodity structure, increase the proportion of daily consumer goods, and continue to focus on the "cost-effective" route, there will be a way out.

Beijing Business Daily reporter Wang Weiyi Hu Jingrong/Photo by Wen He