Group 1 - The last Hema X membership store in China, located in Shanghai, has officially closed, marking a significant adjustment for Hema Group in its membership store segment [1] - The store had begun clearance sales with discounts ranging from 10% to 30%, attracting many customers looking for last-minute shopping opportunities [1] - Hema X membership stores were launched as a domestic competitor in the warehouse-style membership market, directly competing with international giants like Costco and Sam's Club [4] Group 2 - Several Hema X membership stores have closed this year, including locations in Shanghai, Beijing, Suzhou, and Nanjing, raising speculation about the company's strategy [6] - The closure of these stores is part of a proactive business adjustment by Hema Group, reflecting strategic considerations in the current market environment [6]

Core Viewpoint - Hema is closing all its X membership stores due to business adjustments, with only one store remaining operational until August 31, 2023, marking the end of this retail format in China [2][3][6]. Group 1: Store Closures - Hema has announced the closure of multiple X membership stores throughout the year, with the last operational store located in Shanghai [3][5]. - The Beijing World Flower store has been completely stripped of equipment and is locked, awaiting a new tenant [5]. - Hema's customer service confirmed that X membership cards can be refunded or used in other Hema formats, such as Hema Fresh and Hema Mini [5][6]. Group 2: Employee Impact - Employees were reportedly forced to transfer to other stores after the closure, with claims of coerced contract changes and potential termination for non-compliance [12]. - The company has faced criticism for its handling of employee contracts and labor relations during this transition [12]. Group 3: Market Competition - Hema X membership stores faced intense competition from established players like Sam's Club and Costco, as well as local competitors like RT-Mart and Ole [8]. - Despite initial ambitions to compete directly with these brands, Hema's X membership stores struggled to maintain customer interest and quality standards [7][10]. Group 4: Future Strategy - Hema plans to focus on its core businesses, Hema Fresh and Hema NB, shifting away from the X membership model [12]. - The company aims to open nearly 100 new Hema Fresh stores in the upcoming fiscal year, indicating a strategic pivot towards community-oriented retail [12].

Core Insights - Hema X membership stores will cease operations entirely, marking a significant shift in the company's strategy [1][10] Group 1: Company Overview - Hema X membership stores are a membership-based retail format under Hema Group, launched to compete with Costco and Sam's Club, with the first store opening in Shanghai in October 2020 [4] - The membership structure includes a 258 yuan/year gold membership and a 658 yuan/year diamond membership, targeting middle-class and high-end consumers [7] Group 2: Business Adjustments - The decision to close the membership stores is part of a proactive business adjustment by Hema, which has already suspended operations at several locations since April 1, 2023 [4][10] - Despite the closure of physical membership stores, Hema will continue to honor membership benefits [9] Group 3: Future Strategy - Hema plans to focus on its core business models, Hema Fresh and Hema NB, which are designed to complement each other and enhance market coverage, particularly in Shanghai [9]

Core Viewpoint - Hema has decided to completely shut down its membership store business, which was previously seen as a "second growth curve" for the company, following the closure of its membership stores in Beijing and Suzhou [1] Group 1: Store Closures - Hema X membership store in Shanghai will cease operations on August 31, following the closure of its Beijing and Suzhou locations on July 31 [1] - After August 31, all Hema membership stores will be closed, marking the end of this business segment [1] Group 2: Strategic Shift - Hema has stated that the closure of the membership stores is a proactive adjustment, with a focus shifting towards Hema Fresh and Hema NB formats [1] - The company plans to continue expanding Hema Fresh stores, with nearly 100 new locations expected to open in the new fiscal year [1] Group 3: Background Information - Hema X membership store is a membership-based retail format launched by Hema, which was the first Chinese brand in the warehouse-style membership sector, competing with Costco and Sam's Club [1] - The first Hema X store opened in October 2020 in Shanghai [1]