Core Insights - A new retail model combining bulk purchasing and community convenience is emerging in response to consumer demand for cost-effectiveness [1] - The company, DiCam, is upgrading its store format to focus on "savings supermarkets," offering a combination of bulk snacks and daily necessities [1] Supply Chain Optimization - DiCam's competitive edge lies in its systematic restructuring of the supply chain, establishing direct procurement partnerships with over 200 food manufacturers, reducing procurement costs for snack products by 18%-25% [3] - The company employs a "whole box ordering, loose sales" model for high-repurchase categories like puffed snacks and nuts, maintaining price advantages while catering to family consumers' needs for smaller packaging [3] - In the daily necessities sector, DiCam collaborates with brands like Procter & Gamble and Unilever to offer customized large-pack products, with prices generally 10%-15% lower than traditional supermarkets [3] Enhanced Shopping Experience - DiCam's store layout breaks traditional supermarket category divisions, featuring a "Daily Hot Products Zone" at the entrance with items priced 30% below market [5] - The central shelf adopts a "Snack Museum" theme, showcasing over 2,000 snack products grouped by taste and occasion, enhancing the shopping experience [5] - The store design includes a "Family Supply Station" in the daily necessities area, grouping related products and providing annual usage calculations, leading to a 22% increase in average transaction value [5] Community Engagement - DiCam positions each store as an extension of community service, offering amenities like convenience medicine cabinets, charging stations, and hot water supply [7] - Initiatives such as a "Second-hand Exchange Corner" and "Senior Care Day" for free health checks for customers over 60 enhance community ties and customer loyalty [7] - The penetration rate of households within a 1-kilometer radius of stores reaches 47%, significantly above the industry average [7] Industry Trends - The community retail sector, emphasizing high cost-performance, is projected to grow at 14.2% in the first half of 2024, outpacing the 3.5% growth of hypermarkets [9] - DiCam's innovative model redefines the "people-goods-scene" relationship, capturing consumer expectations for quality and affordability [9] - The retail industry is transitioning from price wars to value wars, necessitating upgrades in supply chain efficiency, shopping experience, and digital operations to maintain quality while offering lower prices [9]

Core Viewpoint - The retail industry is experiencing a structural differentiation, with resource-based giants making strides while smaller players are gradually fading or being restructured [38][69]. Group 1: Retail Expansion and Strategies - Major players in the "new retail" sector are actively opening new stores, indicating a potential recovery in the supermarket industry [3][35]. - JD's Seven Fresh has transformed from an "online grocery" model to an instant retail platform with physical store experiences and supply chain capabilities [6]. - Hema is expanding aggressively in the Yangtze River Delta, with a focus on county-level markets to tap into consumer potential [9][10]. - Hema's strategy has evolved to include multiple formats, emphasizing community experiences and instant delivery [10][20]. - By early 2025, Hema achieved its first annual profit since its inception, with nearly 430 stores across 50 cities [21][22]. Group 2: Regional Players and Market Dynamics - Regional supermarket leaders like Biyoute are also expanding, with plans to open 14 new stores in 37 days across northeastern provinces [26][30]. - Fresh Legend plans to double its store count, aiming for 500 locations by 2026, indicating a strong regional focus [32]. - The expansion efforts of these companies are not blind but are based on a strategy of integrating warehouses and stores with strong supply chains [34]. Group 3: Industry Challenges and Performance - Despite some positive signals from leading companies, many traditional small and medium-sized supermarkets are still in an adjustment phase, with store closures being common [35][37]. - A survey by CCFA revealed that 57.4% of surveyed supermarket companies experienced a decline in total sales, indicating significant pressure on the industry [42]. - The phenomenon of "increased revenue without increased profit" is prevalent, with 53.2% of supermarkets reporting a decline in net profit [45][46]. - The overall number of stores in the sample decreased by approximately 1.8% in 2024, reflecting a reduction in expansion desires [47]. Group 4: Performance of Listed Retail Companies - Among 10 listed retail companies, 6 reported a decline in revenue in the first quarter of 2025, with notable drops from Yonghui Supermarket and Zhongbai Group [57][58]. - Only two companies, Bubugao and Sanjiang Shopping, achieved both revenue and profit growth in the same period [63]. - The overall performance of the supermarket industry in 2025 does not indicate a full recovery but rather a new phase of intensified differentiation [64][69]. Group 5: Future Outlook - The future retail market is expected to be dominated by strong players, with instant retail, membership stores, and community commerce becoming the main competitive arenas [66][67]. - Companies that can adapt to new consumer trends and leverage supply chain and digital capabilities are likely to survive and seize new opportunities in the industry restructuring [67].