Core Points - Hema's X membership stores are set to close, marking a significant shift in its retail strategy [1][4][11] - The closure aligns with Hema's focus on its main store and discount store formats, as part of a broader strategic adjustment [3][6][12] - Hema's initial ambition for the X membership stores was to rapidly expand, aiming to open 100 stores in three years, but this goal has not been realized [5][11] Company Strategy - Hema has been closing stores since 2023, including locations in Hangzhou and Wuhan, with the last X membership store in Shanghai set to close by August 31, 2025 [7][11] - The company is transitioning towards hard discount formats and targeting lower-tier markets to establish a new growth trajectory [11][12] - Hema's new strategy includes merging its neighborhood and outlet stores into the "Hema NB Division," focusing on low-cost, high-frequency essential goods [12] Industry Context - The closure of Hema's X membership stores reflects a broader trend in the retail industry, where membership-based supermarkets are facing challenges [8][10] - Competitors like Costco and Sam's Club are also experiencing difficulties in the Chinese market, with Costco's membership renewal rate at only 62% [8][9] - Other retailers are exploring different strategies, such as Metro's focus on differentiated products and the emergence of new retail models like Aldi, which emphasizes low-cost, no-fee shopping [9][10]