---
title: "\"Hold on for two more years; if it doesn't make money, I'll close the shop.\""
description: "A few days ago, I walked into a small supermarket at the entrance of my residential community to buy a bottle of water. I noticed a thin layer of dust on the shelves and saw that the shelf life of the products was only half a year left. It was clear that sales were sluggish, and the salesperson hadn't visited to tidy the shelves for a long time. Seeing the sparse customers in the store, I chatted with the owner. The couple, trapped in their small shop with low foot traffic and thin profits, shared their struggles."
author: "何雯"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-11-30"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-doesn-t-make-money-i-ll-close-the-shop-a9e56e5a/"
markdown: "https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-doesn-t-make-money-i-ll-close-the-shop-a9e56e5a.md"
original_source: "https://mp.weixin.qq.com/s/5a0ZaYyyEOiY4SsXerQjtw"
translation: "https://xinjignxiao.com/zh/articles/%E5%86%8D%E5%9D%9A%E6%8C%81%E4%B8%A4%E5%B9%B4-%E5%AE%9E%E5%9C%A8%E4%B8%8D%E8%B5%9A%E9%92%B1%E5%B0%B1%E5%85%B3%E5%BA%97%E4%BA%86-a9e56e5a.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-doesn-t-make-money-i-ll-close-the-shop-a9e56e5a/"
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---

# "Hold on for two more years; if it doesn't make money, I'll close the shop."

> A few days ago, I walked into a small supermarket at the entrance of my residential community to buy a bottle of water. I noticed a thin layer of dust on the shelves and saw that the shelf life of the products was only half a year left. It was clear that sales were sluggish, and the salesperson hadn't visited to tidy the shelves for a long time. Seeing the sparse customers in the store, I chatted with the owner. The couple, trapped in their small shop with low foot traffic and thin profits, shared their struggles.

A few days ago, I walked into a small supermarket at the entrance of my residential community to buy a bottle of water. I noticed a thin layer of dust on the shelves and saw that the shelf life of the products was only half a year left. It was clear that sales were sluggish, and the salesperson hadn't visited to tidy the shelves for a long time. Seeing the sparse customers in the store, I chatted with the owner.

**The couple trapped in their small shop by low foot traffic and thin profits**

This small supermarket is run by Brother Wang and his wife. The first floor sells snacks and fresh produce, while the second floor has daily necessities and personal care products. Although the space is not large, the product range is fairly complete. When asked about sales, they told me that business this year has been dismal. "Last Mid-Autumn Festival, we sold milk by the case, one after another. This year, we sold less than half of that during the holiday," Brother Wang shared. "After the National Day holiday, we reviewed the sales for the first ten months. Overall, it dropped by about 30%, especially for beverages and snacks, where sales nearly halved." "This year is the toughest since I opened the shop," Brother Wang sighed.

Facing declining sales, the couple has not been idle. First, they extended business hours. From 8 a.m. to 10 p.m., sometimes even later, they take turns to serve more customers. Second, they added fresh produce. After opening in the morning, one stays to watch the store while the other goes to the market to buy fresh vegetables and fruits. "Although fresh produce has little profit, if we don't sell these items, even fewer people will come," Brother Wang said helplessly.

Additionally, Brother Wang started looking for cheaper sources on social media. He told me, "The wholesale prices from salespeople for certain instant noodles and beverages keep rising. Our small shop can't compete." He joined a wholesale exchange group. "Sometimes there are very low prices, but the supply is unstable. Still, it saves a bit." Even so, the customers who come in are mostly middle-aged and elderly, mainly to buy groceries. The products on the shelves are rarely bought.

"I plan to hold on for two more years. If things don't improve, I might really consider closing down." "Rent is still rising, and we're not making money. The pressure is too much," Brother Wang continued. "Even if I went out to work, I could earn at least 5,000 to 6,000 yuan a month, and it would be easier, without taking on so much risk."

**When the 'wolves' come, mom-and-pop shops panic**

Brother Wang's small shop is not an isolated case. In recent years, traditional small shops have generally faced a cold market and operational difficulties. On one hand, the offline market share is being divided among multiple players, intensifying competition. According to statistics, there are currently over 300,000 convenience stores in China, and in 2023, sample convenience store companies added 9,072 net new stores. Against this backdrop, small shops are directly affected. "A new Meiyijia opened in the community and directly took away a lot of my customers. They offer oden, hot food, and bento boxes that we don't have, plus courier services. Since they're inside the community, they're closer to customers, so many people go there to shop," said a community small shop owner.

Additionally, snack stores are expanding rapidly. According to iiMedia Research data, by the end of 2021, there were only about 2,500 bulk snack stores in China, but by October 2023, that number exceeded 22,000, and it's projected to reach 45,000 by 2025. Not long ago, in my city, two snack stores were "competing" by putting up 50% discount signs. The two stores are less than 100 meters apart, and a mom-and-pop shop is sandwiched right in between. When I asked the staff, I learned that this promotion had been going on for a month. Under such circumstances, traditional small shops naturally have a hard time. While queuing to pay, I chatted with a few young customers. Their feedback was unanimous: "The prices are indeed very favorable, and there are many products we've never seen before. It's relaxing to browse after work."

On the other hand, traditional small shops have significant operational issues themselves. Compared to chain stores, traditional small shops do poorly in product assortment and display, giving consumers no desire to enter. Standing outside, you can clearly feel the stark contrast between this small shop and the long queues at the snack stores. The small supermarket sandwiched in between even uses a heavy curtain, making it hard to tell if it's open. Inside, the first thing you see is boxes piled up in the aisles, making the space feel cramped, with a sense of "let it go to pot." This contrasts sharply with the clean, bright snack stores and convenience stores nearby. The shelves still hold old products from ten years ago, and even when new products are introduced, it's often due to display fees paid by upstream suppliers rather than deep analysis of market demand. A friend living nearby said, "I occasionally pass by this supermarket. I used to buy drinks, but basically the products on the shelves haven't changed. Now I'd rather go to the snack store next door to see what's new."

So often, **consumers are not unwilling to shop offline; the key is whether small shops meet consumer needs.** Consumers are becoming more mature, and their demands are increasingly diverse. If traditional small shops don't actively change, it will become harder and harder to retain customers...

**Small shop business is tough**

**What should distributors who serve small shops do?**

Snack stores, convenience stores, and even front-warehouse models are essentially carving up the local market share. As traditional small shops face increasing pressure, distributors who rely on local shops for sales are also starting to struggle.

Recently, when I visited a snack distributor, he told me, **this year, the rate of shop closures has increased significantly compared to the past, and his business has been greatly affected, down nearly 30%.**

However, crises also bring opportunities. Some distributors told me that their business not only didn't decline this year but actually grew. Because retail stores are having a hard time, to survive and avoid being acquired or eliminated, they need a reliable "ally"—the distributor. Distributors who can deeply bind with terminal stores and help them stabilize their business will have a stronger moat in the future. For distributors, they must develop a new capability: **understanding retail business.** Small shops are different from convenience stores, snack stores, and chain supermarkets, which have strong supply chain management and brand support. Small shops often lack the necessary operational capabilities and resources. Therefore, distributors need to provide precise and effective product selection, price control, and reasonable marketing strategies to help small shops resist risks and find growth.

For example, a snack distributor in Nantong, through refined category management, **contracts shelves in partner small shops, operating the entire snack category's shelf, including product mix, display, and price design, and even designs the store's traffic flow, provides free shelves, and offers one-stop services.** Another trading company case is that they regularly organize training courses for store owners of partner stores to help them understand the latest market trends and consumer needs. The courses cover not only basic sales skills but also how to use social media and build private domains for promotion.

For distributors, after deeply "binding" with small shops, with sufficient terminal resources, it's easier to gain support and resources from upstream manufacturers. With stronger terminal stickiness, it's easier to launch new products and sell higher-margin products, forming a perfect closed loop.

**Final Thoughts**

**Thousands of traditional small shops form the capillaries of China's retail, and even today, they remain the core force offline!** Traditional small shops need to find their rhythm, leverage their community proximity advantages, root themselves in the community, focus on consumer needs, and provide convenience to neighbors; distributors should focus on refined category operations and deepen their terminal presence. As mentioned in a previous article by New Distribution, **all distributors are worth redoing their terminals, and for the "terminal" itself, the same applies—traditional mom-and-pop shops are also worth a comprehensive renovation.**


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