Core Viewpoint - Hema's membership store format is set to disappear entirely, with the last remaining store in Shanghai closing on August 31, 2023, following the closure of several other locations earlier this year [1][4]. Group 1: Membership Store Closure - Hema has been closing its X membership stores throughout the year, with the last one in Shanghai scheduled to cease operations, marking the end of this store format [1][4]. - The X membership store format was initially launched in October 2020 and expanded to major cities, but it is now being phased out as the company shifts focus to other business models [2][4]. Group 2: Strategic Shift - Hema's management has decided to redirect resources towards Hema Fresh and Hema NB, indicating a strategic shift away from the membership store model due to high investment costs and long payback periods [4][5]. - The CEO of Hema expressed confidence in the Hema NB format, with plans to grow the number of stores to 300 by the end of 2024 [4]. Group 3: Challenges of Membership Stores - The membership store model requires significant capital investment for physical store expansion and supply chain capabilities, which has proven challenging for Hema [5][6]. - Intense competition from established membership stores like Sam's Club and Costco, as well as emerging players like Dailu Fan and Ao Le Qi, has further pressured Hema's membership store performance [6]. Group 4: Future Outlook - The retail landscape is becoming increasingly competitive, with a focus on profitability driving Hema's decision to discontinue the membership store format [6]. - The company is likely to continue experimenting with various retail formats to identify the most profitable avenues for growth in a rapidly evolving market [6].