Core Viewpoint - Aeon is closing its Fengtai store in Beijing on May 16, marking a significant shift in its strategy and a complete withdrawal from the Beijing market after years of retail exploration [1][4][21] Summary by Sections Market Adjustment in North China - Aeon entered the Beijing market with ambitious plans, aiming to capture a share of the retail market through its General Merchandise Store (GMS) format, which offered a wide range of products [3] - The company faced increasing challenges, including high rental costs and rising labor expenses, which pressured its profit margins [3][4] - Local competitors like Yonghui and Wumart gained an advantage due to their understanding of the local market and flexible marketing strategies, intensifying competition [3] Store Closures and Strategic Shift - The closure of the Fengtai store is part of a broader trend of Aeon reducing its presence in Beijing, with customers now needing to travel to Tianjin or Yanjiao for shopping [4] - Aeon's focus has shifted to its remaining stores in Tianjin and Yanjiao, which are adapting to new market trends by transitioning towards smaller food supermarket formats [4][5] Focus on Community and Digitalization - Aeon is enhancing its community engagement by leveraging digital tools, such as the "Aeon Home Delivery" app, to provide convenient delivery services to local residents [5][14] - The company is shifting towards smaller food supermarkets that emphasize fresh produce and high-frequency consumer goods, which are more aligned with community needs [5][10] Expansion in Other Regions - Despite the retreat from Beijing, Aeon continues to expand in the Guangdong-Hong Kong-Macau Greater Bay Area, with plans to open five new stores by 2025, focusing on community-oriented food supermarkets [8] - In Central China, particularly in Wuhan and Changsha, Aeon is also expanding its presence, with plans to increase the number of stores significantly by 2030 [9] Operational Efficiency and Cost Management - Aeon is transitioning from a traditional large-scale retail model to a more efficient, community-focused approach to reduce operational costs and improve profitability [19][21] - The company aims to enhance its supply chain efficiency and digital capabilities to better meet consumer demands and streamline operations [19][21] Brand Development and Product Strategy - Aeon is developing its private label products under the "Tehuiyou" brand to improve market competitiveness and increase profit margins [15] - The company plans to increase the share of its private label sales to 30% within three years, enhancing its product offerings and reducing reliance on third-party brands [15]
永旺超市战略调整：北京最后一家门店即将关闭，华北市场收缩与业态转型加速