Core Insights - The article discusses the competitive landscape in the retail sector, particularly focusing on the aggressive expansion of Hema and its impact on traditional supermarkets like Jiajiayue and others [4][5][20]. Group 1: Hema's Expansion Strategy - Hema has been rapidly opening new stores, with plans to open at least 206 stores in 2025, 41.75% of which are located in second-tier and lower cities [10][16]. - The company is focusing on a dual business model with Hema Fresh and Super Hema, targeting different market segments and enhancing its presence in lower-tier cities [16][19]. - Hema's strategy includes leveraging existing commercial spaces left vacant by traditional supermarkets, allowing for quick market entry and brand recognition [19][20]. Group 2: Impact on Traditional Supermarkets - Traditional supermarkets are facing significant challenges, with at least 782 stores expected to close in 2024, and many companies reporting revenue declines [6][7]. - The entry of Hema has led to a notable drop in sales for some local supermarkets, with reports of declines exceeding 30% in certain areas [5][6]. - Regional supermarkets are responding by upgrading their offerings and enhancing their online presence to compete more effectively against Hema [22][23]. Group 3: Competitive Dynamics - The competition is not just about pricing but also involves different business models and operational systems, with traditional supermarkets relying on local supply chains and community ties [20][24]. - Hema's innovative product offerings and digital capabilities are seen as significant advantages over traditional supermarkets, which struggle with digital integration [21][26]. - The retail landscape is evolving into a multi-format battleground, with various new retail formats like membership stores and discount stores also expanding rapidly [25][26].