Core Viewpoint - Hema is shutting down its membership store format, which was once seen as a potential growth avenue, indicating a strategic shift in its business model [5][6][8]. Company Summary - Hema X membership stores will cease operations, with the last store in Shanghai closing on August 31, 2023, marking the end of this business format [5][6]. - The membership stores were launched in October 2020, with a peak expansion in 2021, reaching a total of 10 locations by October 2023 [6][7]. - Membership fees were set at 258 yuan per year for gold members and 658 yuan for diamond members, targeting middle-class and high-end consumers [7][8]. Industry Summary - The decision to close membership stores is part of a broader strategy to focus resources on Hema Fresh and Hema NB formats, which are expected to yield quicker returns [8][9]. - The competitive landscape for membership stores is intensifying, with established players like Sam's Club and Costco, as well as new entrants like Dailu Fa, increasing pressure on Hema's membership model [11]. - The retail industry is facing significant challenges, with many traditional supermarkets experiencing declining sales, prompting a shift towards online shopping and innovative delivery models [12][14].