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Articles by 晴山
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31 Shopping Malls Closed, 25 Completely Shut Down: Are Traditional Department Stores Digging Their Own Graves?
The department store industry (specifically the traditional department store format) is accelerating its contraction. This is the result of a weak consumer environment, intensified industry competition, and the pains of business model transformation, evoking both admiration for its past glory and lament for how fast times change. In 2025, according to incomplete statistics from Lianshang.com, at least 31 shopping malls closed, with 25 announcing complete shutdowns. The industry is in a phase of accelerated store closures.
晴山From Good Reputation to Trust Test: Consumers Re-evaluate HotMaxx
Consumers are re-evaluating HotMaxx after a counterfeiting scandal and store closures, while the discount retail chain faces challenges from supply chain instability, rising rents, and intense competition.
晴山The Plight of Alcohol Retail Chains
From December 8 to 9, 2025, the controlling shareholder Henan Qiaohua's 51% stake in Wine Convenience was auctioned off for 68.3996 million yuan, marking a complete change of ownership for the once-largest alcohol distribution chain in Central China. This reflects a broader industry downturn, as major players like 1919 and Huazhi Wine Chain face financial losses, market contraction, and intense competition from new channels.
晴山Local vs. Foreign Discount Stores: Who Can Win Over Consumers?
Local discount stores are rapidly expanding in China, with JD.com opening large-format stores and Meituan launching its 'Happy Monkey' chain, while foreign players like ALDI face challenges in adapting to the Chinese market. The competition centers on supply chain efficiency and consumer value, with the ultimate winner being the one who best balances quality and price.
晴山Why Are Consumers No Longer Willing to Step into Juewei?
Consumers are increasingly avoiding Juewei duck neck stores due to perceived high prices, inconsistent quality, and food safety concerns, leading to a significant decline in revenue and store closures. The company's reliance on a franchise model and failure to adapt to changing consumer preferences have exacerbated its struggles, resulting in a financial penalty and a 'ST' designation.
晴山A Tobacco and Alcohol Store Owner's Lament: 'In All My Years in This Business, I've Never Seen It This Tough'
Inventory turnover has hit a historic low. 'Half the year is already over, and revenue hasn't even reached one-tenth of last year's.' Li Hua (pseudonym) speaks with deep helplessness. Li Hua has run a tobacco and alcohol store in Jinan, Shandong for 12 years, and now struggles to keep the store afloat, losing sleep over it. The 40-square-meter store is fully stocked with various premium cigarettes and liquors, looking no different from previous years. But only Li Hua knows that a significant portion of these goods has been sitting for nearly six months, with inventory turnover at an all-time low.
晴山Supermarkets in the 'Renovation Wave': Some Queue for Roast Duck, Others Lose Money and Close
The renovation trend in China's supermarket industry is heating up, with traditional comprehensive supermarkets transforming into 'food-enhanced' stores to attract younger consumers. However, this shift faces challenges such as high costs, supply chain restructuring, and talent shortages, leading to mixed results.
晴山Lawson's 'Supermarketization' Big Test
Two years after Lawson China proposed its 'convenience store +' strategy, the effects of its 'supermarketization' store renovations appear limited. While pilot stores show increased sales, rising costs, supply chain challenges, and competitive pressures cast doubt on the strategy's success.
晴山Metro's Transformation Dilemma: From B2B Dominance to B2C Challenges
Xia An, a Beijing resident, says she hasn't opened the Metro app in a long time. In 2022, amid the boom in paid membership warehouse clubs, she signed up for both Sam's Club and Metro membership apps. However, Metro's subsequent performance left her dissatisfied, with issues like online stock discrepancies and poor delivery service. Similarly, other consumers and B2B clients have noted a decline in Metro's product range, supply stability, and overall experience since its shift towards individual paid memberships, leading to customer attrition and strategic confusion.
晴山Anxiety on the Snack Shelves
The payback period for snack discount stores is getting longer as competition intensifies. Franchisees face squeezed profits and extended timelines, while the industry undergoes rapid expansion and consolidation.
晴山Multiple Stores 'Closed for Renovation': Metro's Troubles Deepen Year by Year
Metro China has been closing stores for renovation across multiple cities since early this year, with some members complaining about refund difficulties and service issues. The company's supply chain arm, Metro Supply Chain, has seen declining revenue and rising net current liabilities, reflecting the challenges faced by the traditional warehouse club operator in China's competitive retail market.
晴山"Generic" Snack Discount Stores Sweep Townships
Wang Hua, a former designer, opened a snack discount store in a small township in Shandong, but business has been poor, with daily sales around 700 yuan and a 16% gross margin, leading to losses. He regrets joining the franchise, as the initial investment was nearly 90,000 yuan, and the prices are not competitive compared to county-level stores. The article also discusses the rapid expansion of snack discount stores in county towns and townships, their low-price strategies, and the challenges they face.
晴山The Decline of Hypermarkets and the Rise of Discount Stores: A New King Takes the Throne in Chinese Retail
Once-dominant hypermarkets in China are retreating, while discount and membership stores are surging. Carrefour's glory days are over, and traditional supermarkets face closures and losses, but new players like Sam's Club and Pangdonglai are thriving by focusing on value and experience.
晴山“I've Run a 16-Year-Old Store in Beijing, and This Year Is Harder Than Last Year”
Wang Dong, who has run a community supermarket in Beijing for nearly 16 years, reflects on the bittersweet journey of retail, facing rising rents, falling sales, and changing consumer habits. He expanded and then contracted his store, and now also runs a new store in a third-tier city, but profits remain thin as costs rise.
晴山Who Still Shops at Department Stores?
Department stores are facing a survival crisis as losses mount and closures spread. Wang Yun's visit to an old-city department store during a holiday revealed empty aisles and an aging customer base, reflecting a broader trend where traditional retailers lose ground to e-commerce and shopping malls.
晴山The Popular Large Supermarkets in County Towns
Wang Ying marvels at the booming business of large supermarkets in county towns compared to first- and second-tier cities. During the Dragon Boat Festival, she noticed two new chain supermarkets in her hometown's new district, both owned by the same person, offering fresh produce at lower prices and better service, attracting many residents.
晴山Convenience Stores Accelerate Expansion, Intensifying Competition
Convenience store chains are rapidly expanding, with store counts doubling for some regional players, particularly in lower-tier markets. However, industry data shows that while overall scale grows, average revenue per store is declining, and major players like FamilyMart and Bianlifeng are losing momentum.
晴山The Divided Community Stores
Community stores are being forced to split and share their spaces due to declining business. Owners like Wang Hua and Zhang Hong are renting out parts of their stores to reduce costs, while some like Wang Qi have chosen to close down entirely.
晴山Fewer Customers, More Idle Bosses
As consumption downgrades, high-end specialized stores such as hair care and hair salons are seeing fewer customers and declining revenue, leading to closures and increased competition. Even luxury retail in London is struggling, reflecting a broader trend of cautious spending.
晴山Declining Performance and Transformation Hurdles: Traditional Supermarkets Struggle to Survive
Revenue declines and performance pressures, shifts in the retail market, and seeking transformation are among the future directions for many supermarket companies, as concluded from their 2023 annual reports. In 2023, Lianhua Supermarket's turnover was approximately RMB 21.836 billion, down about 11.5% year-on-year, with its hypermarket segment down about 22.2%; Jiajiayue achieved revenue of approximately RMB 17.763 billion, down 2.31%; Renrenle's operating revenue was RMB 2.853 billion, down 28.15% from the previous year.
晴山“Rather Than Downgrading Consumption, It's More Like Upgrading Intelligence”
Consumers are cutting spending but improving quality of life, as exemplified by individuals like Wang Feng and Li Lei who have shifted to more frugal habits. This trend is impacting high-end retailers, with stores like CityShop closing and brands like Bestore cutting prices, reflecting a broader shift toward value-conscious consumption.
晴山Busy County Towns: 80% of Franchisees Losing Money?
Wang Lei returned to his county town in Shandong to start a braised food business, leveraging his experience and catering to young tastes, and is doing well with online orders. In contrast, Li Li's milk tea shop failed within months due to high costs and low sales, while franchisees like Li Yang and Yan Zi also suffered losses, highlighting the risks of county-town entrepreneurship despite the perceived opportunities.
晴山“More convenience stores, harder to make money”
A 7-Eleven store in Beijing suddenly closed, reflecting the intense competition and profitability challenges in China's convenience store industry. Despite rapid expansion, average revenue per store is declining, and many franchisees, especially newcomers, are struggling to survive.
晴山Can Convenience Stores Have the Last Laugh?
Convenience store operators in lower-tier cities are facing mounting pressure despite industry growth, as customer numbers decline and costs remain high. The key to survival lies in adapting to local markets and mastering digital operations.
晴山