BABA(US:BABA) Nan Fang Du Shi Bao·2025-08-06 11:31Core Insights - Hema X membership stores are closing, with multiple locations ceasing operations, including stores in Beijing, Suzhou, and Nanjing, with the last store in Shanghai set to close by August 31 [1][2] - Hema's CEO announced a strategic focus on Hema Fresh and Hema NB, leading to the decision to shut down X membership stores [2][4] - The membership store model, initially popularized by Costco and Sam's Club, has faced challenges in China, with experts noting that the model requires extensive supply chain management and customer loyalty, which may not be easily replicated by Hema [4][5] Company Strategy - Hema has been experimenting with various business models since its establishment in 2015, including Hema Fresh, Hema X membership stores, and Hema NB [3] - The decision to close X membership stores aligns with Alibaba's broader strategy to streamline operations and focus on core business areas, as seen in the recent integration of various services under Alibaba's e-commerce umbrella [5] Market Context - The rapid growth of warehouse membership stores has shifted, with industry insiders suggesting that the unique requirements of the membership model may not be suitable for all players in the Chinese market [4] - The membership store format has seen significant success in Germany and the United States, but has not yet achieved similar scale in China, indicating potential market limitations [4]