Core Viewpoint - Hema has decided to completely shut down its membership store format, which was initially seen as a "second growth curve" and aimed to compete with Costco [5][10]. Group 1: Business Closure - All Hema membership stores have ceased operations, with the last store in Shanghai confirming closure by August 31 [1][5]. - The closure follows a series of shutdowns, including stores in Beijing, Suzhou, and Nanjing, which were announced in late July [1][2]. - The decision to close the membership stores is part of a strategic business adjustment by Hema, focusing on its core fresh food retail and outlet formats [10]. Group 2: Membership Store Development - The first Hema X membership store opened in Shanghai in October 2020, and it was positioned as a competitor to Costco [7]. - By October 2023, Hema X had opened a total of 10 stores across major cities, including Shanghai, Beijing, Nanjing, and Suzhou [7]. - 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 [10]. Group 3: Industry Context - The retail industry, particularly chain supermarkets, is facing significant challenges, with 57.4% of surveyed companies reporting a decline in sales [12]. - Consumer behavior is shifting towards online shopping, with many preferring home delivery services over visiting physical stores [12]. - Traditional supermarkets are adapting by enhancing their operational capabilities and exploring new business models, such as front warehouses for faster delivery [12][13].