---
title: "\"Hold on for two more years; if it really doesn't make money, I'll close the shop.\""
description: "A small supermarket owner and his wife are struggling with declining foot traffic and profits, facing competition from convenience stores and snack shops. Distributors are also affected, but some are finding success by deeply integrating with small stores and offering category management and operational support."
author: "何雯"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-07-29"
categories: "Consumer & Categories, Dealer Operations, Retail Formats"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-really-doesn-t-make-money-i-ll-close-th-bb1c3436.md"
original_source: "https://mp.weixin.qq.com/s/SPfesLc9qSGtJBiODXAOfg"
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-bb1c3436.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-really-doesn-t-make-money-i-ll-close-th-bb1c3436/"
citation: "何雯. “\"Hold on for two more years; if it really doesn't make money, I'll close the shop.\".” New Distribution, 2025-07-29. https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-really-doesn-t-make-money-i-ll-close-th-bb1c3436/"
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---

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

> A small supermarket owner and his wife are struggling with declining foot traffic and profits, facing competition from convenience stores and snack shops. Distributors are also affected, but some are finding success by deeply integrating with small stores and offering category management and operational support.

A few days ago, I walked into a small supermarket at the entrance of my residential community to buy a bottle of water. As I approached the shelf, I noticed a thin layer of dust, and checking the expiration date, there were only six months left. It was clear that sales were sluggish, and the salesperson probably hadn't come to tidy the shelves in a long time. Seeing one or two customers in the store, I found the owner and chatted with him.

**A couple trapped in their small shop with 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 isn't large, the product range is fairly complete. When I asked about sales, they told me that business this year has been dismal.

Facing declining sales, the Wangs have thought of countermeasures. First, they extended business hours. They now stay open from 8 a.m. to 10 p.m., sometimes even until midnight, taking turns to man the store to serve more customers. Second, they added fresh produce. After opening in the morning, one of them stays to watch the store while the other goes to the vegetable market to stock up on fresh vegetables and fruits. "Although there's little profit in fresh produce, if we don't sell these items, even fewer people would come," Wang said helplessly.

Additionally, Wang started looking for cheaper supply sources on social platforms. He told me, "The wholesale prices from salespeople for certain instant noodles and beverages keep rising; small shops like ours can't compete." He joined a wholesale exchange group, saying, "There are often very low-priced items in the group, though the supply isn't stable, it saves a bit." Even so, the customers who come in are mostly middle-aged and elderly, mainly to buy groceries, and 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 have to consider closing down," Wang said. "Rent keeps rising, and we're not making money; the pressure is too much," he continued. "Even if I went out to work as a migrant worker, I could earn at least five or six thousand yuan a month, and it would be easier, at least without taking on so much risk."

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

The Wangs' small shop is not an isolated case. In recent years, traditional small shops in the market have generally faced a cold reception and operational difficulties.

On one hand, the offline market share is being divided among multiple players, making competition increasingly fierce. 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, directly taking away a large number of my customers. They offer things we don't have, like oden, hot food, and bento boxes, as well as courier services. Since they're inside the community, they're closer to customers, so many people choose to shop there," said a community small shop owner.

Additionally, snack shops are expanding rapidly. According to iiMedia Research data, at the end of 2021, there were only about 2,500 bulk snack stores in China, but by October 2023, the number exceeded 22,000. It is estimated that by 2025, the number of bulk snack stores will reach 45,000. Not long ago, in my city, two snack shops were "competing on stage," successively putting up promotional signs offering 50% off. The two shops were less than 100 meters apart, and a mom-and-pop shop happened to be sandwiched between them. Asking 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, "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 problems of their own. Compared to chain stores, traditional small shops do poorly in product assortment and display, giving consumers no desire to enter. Standing outside and observing, you can clearly feel the stark contrast between this small shop and the long queues at the snack shop. The small supermarket in the middle even uses a heavy curtain at the entrance, 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, giving off a sense of "let things slide." This forms a strong contrast with the clean, bright snack shops and convenience stores nearby. The shelves still hold old products from ten years ago, and even when new products are introduced, they often rely on display fees paid by upstream suppliers rather than in-depth analysis and consideration of market demand. A friend living nearby said, "I occasionally pass by this supermarket and used to buy some drinks, but basically the products on the shelves haven't changed. Now I'd rather go to the snack shop next door to see if there's anything new."

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

**Small shop business is tough**

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

Snack shops, convenience stores, and even front warehouses are essentially carving up the local market share. Traditional small shops are under increasing pressure, and naturally, distributors who rely on local small shops for sales are also starting to struggle.

Earlier, when I visited a snack food distributor, he told me, **this year, the rate of small shops closing down 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 to find 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 shops, 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, control pricing, and formulate reasonable marketing strategies to help small shops resist risks and find growth.

For example, a snack food distributor in Nantong, through refined category management, **contracts shelves in partner small shops, operating the entire snack food category shelf, including product assortment, display, and price design, and even designing the store's traffic flow, providing free shelves and other one-stop services.** Another trading company case is organizing regular training courses for store owners of partner stores to help them understand the latest market trends and consumer demands. The courses include 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, they can more easily secure resources and support from upstream manufacturers by having enough terminal resources. Once terminal stickiness is stronger, it's easier to push new products and sell higher-margin products, forming a perfect closed loop.

**Final Thoughts**

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

But it must be emphasized that the direction of distributor transformation is never singular; the key is to find the path that suits you.

In the past few years, New Distribution has seen many successful cases, including those who opened retail stores, those who did B2b supply chains, and those who did category operations, gift box customization operators, and so on.

In August, in Shanghai, at the 2025 [New Demand · New Supply] 7th China FMCG Conference and the 5th China FMCG Distributor Conference, we invited benchmark cases from different transformation directions: regional B2b representative—Zhong Xiaoping, General Manager of Jie Cang Wang Gou; platform transformation benchmark—Li Yong, Chairman of Shenzhen Yataixuan Industrial; retail channel operator representative—Zhang Shicheng, General Manager of Tianjin Shicheng Bofa; regional category operator—Zhang Gaifeng, General Manager of Zhengzhou Dapeng Commerce; and Li Fen, General Manager of Xuzhou Runzhong Supply Chain.

We will jointly discuss how distributors should go, transform, and win in the market environment of new demand and new supply.

At the same time, we will release the industry-exclusive "2025 China FMCG Distributor Business Condition Survey Report" to see who is growing and who is being eliminated among distributors this year, what the reasons are, and where the operational focus should be. We will also release the in-depth case collection "Top Ten Growth Case Models for FMCG Distributors," which restores real cases, provides structural thinking, and helps distributors find direction from chaos.

In addition, we will hold the [Regional B2b Platform & Key Brand Cooperation Seminar]. It will bring together 40+ regional B2b platform owners to discuss incremental opportunities in the sinking market covering 200,000 small shops; release and interpret the "Regional B2b Cooperation Guide" on-site; and build a bridge for dialogue between regional B2b platforms and key brand leaders, with discussions, exchanges, one-click connection, and on-site supply-demand matching!

🔺


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## Citation metadata

- Publisher: New Distribution
- Author: 何雯
- Published: 2025-07-29
- Canonical: https://xinjignxiao.com/en/articles/hold-on-for-two-more-years-if-it-really-doesn-t-make-money-i-ll-close-th-bb1c3436/
- Original source: https://mp.weixin.qq.com/s/SPfesLc9qSGtJBiODXAOfg

## Copyright and AI use

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