Nan Fang Du Shi Bao·2025-08-06 23:49Core Viewpoint - Hema has decided to abandon its membership store format, with the last remaining Hema X membership store set to close on August 31, 2023, indicating a strategic shift away from high-investment, low-profit membership models towards focusing on its fresh food and discount store formats [1][2][3]. Summary by Sections Hema's Membership Store Closure - Hema's last X membership store in Shanghai will cease operations, following the closure of seven other membership stores across major cities like Beijing, Nanjing, and Suzhou this year [1][3]. - The closure of these stores reflects Hema's strategic pivot to focus on its Hema Fresh and Hema NB formats, with plans to open nearly 100 new Hema Fresh stores in the upcoming fiscal year [2][3]. Comparison with Competitors - In contrast, competitors like Sam's Club and Costco are rapidly expanding their presence in China, with Sam's Club reporting a 40% increase in membership revenue in its latest financial quarter [1][12][14]. - Sam's Club has significantly increased its store count in China, reaching 53 locations by 2024, compared to only 15 stores in the first 20 years of operation [12][14]. Strategic Insights - Analysts suggest that Hema's decision to close its membership stores is a necessary move to refocus on profitable segments, as the membership model has been characterized by high investment and ongoing losses [11]. - Hema's previous attempts to compete with international giants like Sam's Club have been hampered by insufficient supply chain capabilities and a lack of unique products, leading to a decline in market performance [11]. Membership Fee Structure - Hema's membership fees are structured with two tiers: Gold members pay 258 yuan annually, while Diamond members pay 658 yuan, with cashback incentives for purchases made at membership stores [9][12]. - In comparison, Sam's Club offers similar membership fees, with ordinary members paying 260 yuan and premium members 680 yuan annually [12][14].