Zheng Quan Ri Bao·2025-08-05 15:43Core Insights - The closure of the last Hema X membership store in Shanghai by the end of August signifies the complete withdrawal of this retail format from the market, following the earlier shutdowns of stores in Beijing, Suzhou, and Nanjing [1][2] - Hema's strategic shift focuses on its core businesses, Hema Fresh and Hema NB, as it aims to streamline operations and enhance competitiveness in a challenging retail environment [3][4] Retail Market Dynamics - Hema X membership stores were part of a competitive landscape where various retailers vied for market share, but the intense competition and overlapping business models led to its decline [2] - The membership model, which relies on fees to increase customer loyalty, faced challenges as consumers became more discerning about their choices among competing stores [2] Strategic Focus and Future Plans - Hema's CEO announced a reduction in business formats from 12 to 2, concentrating resources on Hema Fresh and Hema NB to create a complementary business model [3] - Financial projections indicate that Hema expects to exceed 75 billion yuan in total merchandise transactions from April 2024 to March 2025, with a positive adjusted EBITA for the first time [3] Online Business Development - Hema is leveraging Alibaba's 88VIP membership program to attract new customers by offering free 90-day Hema X memberships, which could enhance its customer base significantly [4] - The integration of Hema into Alibaba's instant retail initiatives, such as Taobao Flash Sale, presents new growth opportunities for the company [4] Operational Efficiency - Experts suggest that Hema's future success will depend on its ability to build internal capabilities, focusing on instant delivery, fresh produce operations, and high-cost performance private label products [5]