According to the National Bureau of Statistics, from January to November, total retail sales of consumer goods reached 44,272.3 billion yuan, a year-on-year increase of 3.5%. Among them, retail sales of consumer goods excluding automobiles were 39,796.0 billion yuan, up 3.7%. By retail format, from January to November, retail sales of convenience stores, specialty stores, and supermarkets in units above the designated size increased by 4.4%, 4.0%, and 2.6% year-on-year, respectively; while department stores and brand specialty stores decreased by 2.9% and 0.7%, respectively. As the "capillaries" of the terminal retail market, convenience stores are still in a development period due to their flexible business models and advantages in serving consumers closely. Whether it is store expansion, format innovation, or digital transformation, the convenience store industry has seen many noteworthy events in 2024. Change of Leadership at the First Convenience Store Stock On December 3, 2024, Hongqi Chain announced that Chairman Cao Shiru, Board Secretary Cao Zengjun, and Chief Financial Officer Chen Huijun resigned, and elected Yuan Jiguo as the new Chairman. At the same time, the legal representative of Hongqi Chain was changed from Cao Shiru to Yuan Jiguo. This change marks a significant shift in the controlling shareholder of Hongqi Chain, the "first convenience store chain stock." Despite resigning as Chairman, Cao Shiru will continue to serve as General Manager and retain 245.565 million shares. Former Board Secretary Cao Zengjun was appointed as Deputy General Manager, holding 36.21 million shares; former CFO Chen Huijun resigned but remains with the company, holding 318,100 shares. It is noteworthy that the new senior management team's background is closely related to the new controlling shareholder, Sichuan Commercial Investment. The new Chairman and Board Secretary Yuan Jiguo currently serves as Chairman of Sichuan Rural Development Group Co., Ltd., the parent company of Sichuan Commercial Investment; the new CFO Li Huan is the financial director of Sichuan Commercial Investment; the new Deputy General Manager Tan Liu is the Chairman of Sichuan Province Food Co., Ltd., which is under the same controlling system as Sichuan Commercial Investment. Previously, on November 12, Hongqi Chain announced that Sichuan Commercial Investment completed the share transfer registration, holding 230 million shares, accounting for 16.91% of total shares, becoming the controlling shareholder, with the actual controller changed to the Sichuan Provincial State-owned Assets Supervision and Administration Commission. This marks the official change of ownership of the "first convenience store chain stock." Industry insiders commented that after Sichuan Commercial Investment takes over, Hongqi Chain will usher in new development opportunities. As an important enterprise under the Sichuan Provincial SASAC, Sichuan Commercial Investment has rich resources and strong market influence in trade, catering, liquor, logistics, and other fields. It may bring synergies to Hongqi Chain. Japan's Lawson Delisted On July 23, 2024, Lawson's official website released a "Notice on the Delisting of the Company's Stock," meaning that "Lawson" stock was officially delisted from the Tokyo Stock Exchange at 0:00 on July 24. The closing price of the last trade was 10,330 yen. Lawson's delisting was not due to poor management or financial crisis, but because of the acquisition by Japanese telecommunications operator KDDI, leading to privatization. In February 2024, KDDI launched a public tender offer for Lawson and completed the acquisition in April. Subsequently, in May, Lawson President Takesada Sadanobu confirmed the delisting plan. On July 3, an extraordinary general meeting passed relevant proposals, and it was planned to transition to a joint management system by KDDI and Mitsubishi Corporation around September. This change not only reflects the dynamic changes in the capital market but also reflects the strategic adjustments of large Japanese companies in the face of market saturation and technological transformation. It is worth noting that although Lawson chose to delist in Japan, this does not affect its operations and development in the Chinese market. A relevant person in charge of Lawson China's President's Office clearly stated in an interview that this delisting is part of Lawson Japan's internal equity changes and investment strategy adjustments and will not have a negative impact on the normal operations of the China region. It is reported that as of the end of June 2024, Lawson had opened about 6,400 stores in China and plans to increase this number to 10,000 by 2025. Hebei 365 Capital Chain Break On April 12, 2024, a state-controlled enterprise, Hebei Jiaotou Commercial Technology Co., Ltd., was established in Zhengding County, Shijiazhuang, with the presence of Hebei 365 Group and state capital. In the equity structure, Hebei Province Lufa Industrial Group Co., Ltd. holds 51%, and Hebei Bingsui Network Technology Co., Ltd. holds 49%. Qichacha shows that Hebei Province Lufa Industrial Group Co., Ltd. is 100% controlled by Hebei Communications Investment Group Co., Ltd., with the actual controller being the Hebei Provincial State-owned Assets Supervision and Administration Commission. The capital chain break of Hebei 365 Group gradually surfaced from the end of 2023. The group operates multiple convenience store brands, including "Guoda 36524" urban convenience stores, "365 Junrong" military-civilian integration supermarkets, and "Hao Xiangqin 365" rural e-commerce service stations, totaling more than 16,000 stores. However, due to over-expansion and mistakes in diversified operations, the group faced enormous financial pressure. On one hand, the group opened new stores on a large scale in a short period, leading to soaring fixed costs, dispersed resources, and increased management difficulty. On the other hand, the convenience store industry is highly competitive; "36524" performed poorly in product selection and supply chain efficiency, with high product prices, weakening market competitiveness. Additionally, the group ventured into multiple capital-intensive fields including real estate, which not only require substantial funding but also have long return cycles, further exacerbating financial pressure. At the same time, management errors and external environmental changes combined to deal a double blow to cash flow. Internal operational issues led to frequent wage arrears, while external real estate industry adjustments and macroeconomic fluctuations aggravated capital turnover difficulties. The combined effect of internal and external factors ultimately triggered the capital chain break of Hebei 365 Group. The establishment of Hebei Jiaotou Commercial Technology Co., Ltd. may be a step for state capital to intervene in restructuring, aiming to help Hebei 365 Group resolve the crisis and reshape its business landscape. However, whether effective integration can be achieved in the future remains to be tested by time. 7-11 Parent Company Faces Acquisition As the parent company of the world's largest convenience store brand 7-11, Seven & i Holdings (hereinafter referred to as "7&i Holdings") has been experiencing the most significant ownership dispute in its history since last year. In August 2024, Canadian retail giant ACT proposed a takeover offer of 5.4 trillion yen (approximately 260 billion RMB), attempting to take control of the group with over 85,000 convenience stores. On November 13 of the same year, Seven & i Holdings, the parent company of convenience store giant 7-Eleven, announced that it had received a non-binding acquisition proposal from the founding Ito family. According to previous reports by Bloomberg, the deal is expected to reach 9 trillion yen, with funding from multiple banks, the founding Ito family, and Itochu Corporation. Notably, Itochu Corporation is also the parent company of FamilyMart. Among them, Itochu Corporation, the Ito family, and existing investors will contribute 3 trillion yen in cash and equity, while major Japanese banks such as Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group, and Mizuho Financial Group will provide 6 trillion yen in financing. If this transaction is ultimately reached, it will become the largest management buyout in Japanese corporate history. This means that Seven & i is considering a management buyout (MBO) to resist the acquisition proposal previously made by Canadian convenience store giant ACT. As of the end of December 2024, the acquisition battle entered a critical stage. 7&i Holdings established a special committee to evaluate both proposals, but at the December board meeting, the committee pointed out that "both proposals have uncertainties." It is worth noting that despite the ownership crisis at the parent company of 7-11, it should not have a direct impact on the convenience store business in China in the short term. 7-Eleven Japan has established a wholly-owned subsidiary in China to handle brand licensing matters, meaning that even if the parent company changes, the operating model and service quality in the Chinese market are expected to remain unchanged. Regional Convenience Store Expansion In 2024, the rise of regional convenience store brands became a major feature of the industry. Represented by brands such as Meiyijia, Hongqi Chain, and Jianfu, these enterprises often focus on a provincial capital city and concentrate on laying out third- and fourth-tier cities within the province, forming strong regional coverage capabilities. Taking Meiyijia as an example, as of April 2024, its national store count exceeded 35,000, tripling in seven years. By this calculation, Meiyijia adds about 300 new stores per month on average, an astonishing expansion speed. Its success also provides reference and inspiration for other local convenience store brands. The business models of these regional convenience stores show distinct diversification. Some have a wide variety of products, with functions closer to small supermarkets; others are more like traditional small grocery stores, focusing on meeting the daily needs of community residents. They deeply cultivate local markets while flexibly adjusting services and products to adapt to the needs of different consumer groups. This flexibility and localized operation model are the core competitiveness that enables their rapid development. At the same time, this phenomenon is more obvious in the south. For example, Tianfu Convenience Store mainly concentrates in Guangdong, Hongqi Chain is deeply rooted in Sichuan, and Jianfu Convenience Store is based in Fujian. These brands mostly expand around specific regions, supported by strong supply chains. By opening stores intensively in a certain region, convenience store enterprises form a dense store network, which not only significantly improves distribution efficiency but also fully leverages economies of scale, further reducing operating costs. However, regional convenience stores face huge challenges when expanding across regions. Cross-regional development requires enterprises to re-establish local supply chain systems, which not only places higher demands on logistics and operational capabilities but also means a considerable cost investment. Therefore, many local convenience store brands choose to be steady, prioritizing the consolidation of local markets and gradually expanding their influence. Deploying "Front Warehouses" In 2024, the convenience store industry began to deploy "front warehouse" models on a large scale, promoting online-offline integration. According to the "2024 China Convenience Store Development Report" released by KPMG and the China Chain Store & Franchise Association, the convenience store industry showed two important trends: In 2023, national sales reached 424.8 billion yuan, a year-on-year increase of 10.8%, with store scale exceeding 321,000, up 7.0% year-on-year; in addition, nearly 90% of convenience store enterprises have opened online businesses, and onlineization is becoming a key path for enterprises to improve efficiency and find increments. Tianfu Convenience Store took the lead in piloting front warehouse business, covering 400 square meters, operating 24 hours, covering more than 4,000 products, with a service radius of 10 kilometers, promising 30-minute delivery. Data shows that one month after the front warehouse went online, Tianfu's average daily order volume reached 400 orders, with daily average sales stabilizing at around 12,000 yuan, showing strong profitability. In addition, Yijie, backed by Sinopec, is also continuously exploring new formats such as front warehouses, with a huge store network nationwide. In recent years, it has used its 28,000 Yijie Express convenience stores as a starting point to explore instant retail, using models such as "store-warehouse integration" and "front store, back warehouse" to turn stores into fulfillment centers for instant retail. This move not only improves store utilization and operational efficiency but also brings significant incremental revenue to Yijie. The advantage of the front warehouse model lies in low cost and high efficiency. Compared with traditional stores, front warehouses do not need to choose high-rent areas, significantly reducing operating costs; at the same time, their larger product capacity meets consumers' expectations for diverse shopping needs. Through online delivery services, front warehouses further enhance "time convenience." Snack Stores Impact Convenience Stores In 2024, snack stores strongly impacted the retail market, and convenience stores were not spared. The snack brand "Ai Lingshi" even announced on August 22 its entry into the convenience store field, attempting to expand its business territory. However, in the past month, related business progress has been minimal, attracting external attention. Snack brands horizontally seizing the convenience store market seems logical. Since snack store locations are similar to convenience stores, but with larger areas, more product categories, and price advantages, they attract many consumers. However, the core competitiveness of convenience stores—fresh food supply chain—has become the main difficulty for snack brands to enter this field. Fresh food products account for a significant proportion of convenience store sales and are an important reason why consumers choose convenience stores. However, establishing a fresh food supply chain requires efficient production and logistics support, and the loss rate of fresh food further increases cost pressure. For snack brands that mainly use franchise models, whether franchisees are willing to bear the additional costs of fresh food promotion has become a major obstacle. In addition, the instant retail characteristics of convenience stores place higher demands on cold chain logistics. Cold chain construction requires huge investment, and both brand owners and franchisees need to bear high costs. In the current fierce competition among snack brands, raising franchise thresholds may limit expansion speed. Snack brands entering the convenience store market is not easy; challenges in supply chain, cost, and operating models need time to resolve. How to balance expansion and investment will determine whether they can gain a foothold in the convenience store market. The aggressive expansion of snack stores has objectively taken away some of the convenience store business. However, it should also be noted that while the expansion of snack stores brings pressure to traditional convenience stores, it also promotes optimization in supply chain and product innovation for convenience stores. Exploring New Store Formats The convenience store industry is entering a critical period of transformation. Facing fierce market competition and escalating consumer demands, major brands are seeking breakthroughs through innovative formats and diversified services. Some industry insiders predict that convenience stores are transforming from single product sales to comprehensive community service platforms, from dining experiences to discount models, and then to community services. On April 23, 7-11 opened its first "small canteen" model store nationwide. According to reports, the new store added a dine-in area, focusing on freshly made, freshly baked, and freshly fried meals, priced from 6.9 yuan to 22.9 yuan. This attempt meets consumers' demand for quick dining, while expanding consumption scenarios through dine-in services, bringing more increments to the brand. Tianfu Convenience Store focuses on the discount store format, attracting consumers with the slogan "one piece is also wholesale price." Its stores use promotional activities such as 20% off products, buy 15 yuan get 6 yuan, and flash sales of popular products, combined with a "high quality, low price" strategy to enhance traffic and market competitiveness. In addition, models such as "convenience store + breakfast," "convenience store + fresh food," and "convenience store + community group buying" are also emerging. By adding consumption touchpoints, convenience stores gradually cover more consumption scenarios and increase store visit frequency. These innovations not only facilitate residents' lives but also enhance the community stickiness of stores. Facing market changes and the impact of discount stores, convenience stores need to continuously adjust their positioning. Some industry insiders believe that "discount convenience stores" may be the future direction, but the core remains "convenience." Convenience stores need to shift from selling products to providing diversified services, becoming an indispensable part of residents' lives. In the future, competition in the convenience store industry will go beyond products and prices, depending on service capabilities and innovation levels. By optimizing formats and expanding service boundaries, convenience stores are expected to find new growth momentum in transformation and shape business models closer to consumer needs. Shandong Convenience Store Leader Changes Hands Shandong's convenience store industry has undergone significant changes in recent years, especially the former leading brand "Tongyi Yinzuo," which experienced a major equity change at the beginning of 2024. Specifically, Shandong Yinzuo Mall Co., Ltd. publicly transferred its 45% state-owned equity in Shandong Tongyi Yinzuo Commercial Co., Ltd. at a price of 1 yuan, which was ultimately taken over by Tengzhou Zhongjiahui Trading Co., Ltd., marking the official change of ownership of this convenience store brand that had operated for nearly 20 years. This transaction not only changed the ownership structure of "Tongyi Yinzuo" but also meant that the brand would no longer use the original "Lushang" and "Yinzuo" names, gradually withdrawing from the market and adopting the new name "Zhongjiahui." For a long time, "Tongyi Yinzuo" had been insolvent. According to public data, as of the end of January 2024, the company's owner's equity was -69.0996 million yuan, showing severe financial pressure. Facing fierce market competition and rising costs, "Tongyi Yinzuo" found it difficult to maintain its original operating conditions and ultimately chose to seek a way out through equity transfer. After taking over, Zhongjiahui Trading (Jinan) Co., Ltd. quickly launched the integration and renovation of the original "Tongyi Yinzuo" stores, including changing store signs, transforming stores, and adding service functions. Regarding this change of hands, the industry generally believes it is an important reshuffle in the Shandong convenience store market. On one hand, the withdrawal of "Tongyi Yinzuo" freed up a large amount of market share, providing space for other competitors to develop; on the other hand, Zhongjiahui, as a brand from a county, successfully acquiring such a large enterprise is also seen as a typical "snake swallowing elephant" case. It is worth noting that in addition to internal adjustments, the external environment also brings opportunities for new entrants. For example, Lawson Convenience Store accelerated its expansion during the same period. As of March 2024, its store count in Shandong reached 702, surpassing Zhongbai Convenience. At the same time, Meiyijia is also actively laying out the Jinan market, planning to open more direct-operated stores within the year. In summary, the change of hands of "Tongyi Yinzuo" is not only a turning point for a single enterprise but also a microcosm of the development of the entire Shandong convenience store industry. Convenience Store Performance Diverges, Mixed Results In 2024, convenience store performance diverged, with some expanding, some contracting, and others exploring new businesses. Meiyijia is one representative of active expansion. On April 19, 2024, Meiyijia's official WeChat account announced that as of April 18, Meiyijia's national store count exceeded 35,000. According to the "2023 China Convenience Store TOP100" list released by the China Chain Store & Franchise Association, Meiyijia ranked first with 33,848 stores; Sinopec Yijie ranked second with 28,633 stores; PetroChina Kunlun Haoke ranked third with 19,780 stores. Tianfu and Lawson ranked fourth and fifth with 7,208 and 6,330 stores, respectively. Bianlifeng is one representative of "contraction." On February 28, 2024, Qingdao Bianlifeng Commercial Operation Co., Ltd. Kunshan Road store was officially deregistered. This marked the end of the brand's four-year development in the Qingdao market, once regarded as a "dark horse" in the convenience store industry. Qichacha shows that Qingdao Bianlifeng has cumulatively deregistered 109 branches. According to the convenience store TOP100 list released by CCFA in April 2024, Bianlifeng's store count had sharply decreased to 1,510, directly falling out of the top 20, ranking 25th. At the end of 2021, Bianlifeng had 2,800 stores. Although the convenience store industry has mixed results, some investors believe that 2024 presented a good opportunity for investment and mergers and acquisitions in the convenience store industry. At the end of August 2024, Zhejiang Shizu Convenience partnered with Hunan Qianhui, another important industry integration. Hunan Qianhui Commercial Chain Co., Ltd. formally established a strategic partnership with Zhejiang Shizu Convenience Co., Ltd. on August 21, 2024. The "Shizu" brand was founded in 2001 and currently has 25 subsidiaries, with stores widely distributed in Zhejiang, Jiangsu, Anhui, Shandong, Hunan, Shanghai, and other places. As of the end of 2023, the number of Shizu convenience stores reached 3,879, ranking among the "Top Ten Chinese Convenience Store Chains" for many consecutive years. Hunan Qianhui Commercial Chain Co., Ltd. was established in 1997 and is a key commercial chain enterprise approved by the Changsha Municipal Bureau of Commerce. It currently has more than 300 convenience stores in Hunan Province and is a chain enterprise with diversified operations, multi-brand integration, and an online-offline integrated model. Some convenience store enterprises are also actively embracing online channels and deploying "front warehouse" businesses, such as Tianfu. [New Order · Symbiosis] The 10th China FMCG Innovation Conference Time: March 17-19, 2025 Location: Chengdu, China