Core Viewpoint - Hema's X membership stores are closing down nationwide, marking the end of this business model for the company [3][10][21]. Group 1: Store Closures - Multiple Hema X membership stores, including locations in Beijing, Suzhou, and Nanjing, have ceased operations as of July 31 [3]. - The last remaining store, Hema X membership store in Shanghai, will close on August 31, 2025, leaving no operational X membership stores [10][12]. - The closures are part of a strategic business adjustment by Hema, which has decided to eliminate the X membership store format [15][23]. Group 2: Business Model and Strategy - Hema X membership stores were launched in October 2020 in Shanghai and were seen as a potential "second growth curve" for the company, aiming to compete with Costco [13][15]. - The membership model included annual fees of 258 yuan for gold members and 658 yuan for diamond members, targeting middle-class and high-end consumers [15]. - Hema's strategy is shifting focus towards its core businesses, Hema Fresh and Hema NB, which are seen as more sustainable and competitive in the current market [22][23]. Group 3: Market Context - The closure of Hema X membership stores comes amid a broader trend of domestic retailers entering the warehouse membership store market, following the successful launch of Costco in China [17][20]. - Hema's decision reflects a response to market dynamics and a need to concentrate resources on more promising business models [23].