Core Insights - Hema's X membership stores in Shanghai and other locations have ceased operations, marking the end of Hema's membership store business, which was previously seen as a "second growth curve" and aimed to compete with Costco [1] Group 1: Business Strategy - Hema's parent company Alibaba is retracting its retail footprint by divesting from businesses such as Gaoxin Retail and Intime Department Store [1] - The competitive landscape for membership stores in China has intensified, leading to a noticeable slowdown in overall expansion [1] - Hema is reallocating resources towards its core business segments, including Hema Fresh and Hema Neighbor Business [1] Group 2: Store Operations - The closure of the Beijing World Flower store was announced on July 29, with operations ending on July 31, followed by similar closures in Suzhou and Nanjing on the same day [1] - Observations from the Beijing store indicated that the entrance was closed, allowing customers to enter only through the exit without membership verification, and most shelves were empty with limited discounted items available [1] - During a half-hour visit, only five customers were seen in the store, none of whom made purchases, indicating a lack of consumer interest [1]

Core Viewpoint - Hema has completely shut down all its membership stores, marking the end of its attempt to establish a membership-based business model that was intended to rival Costco [1] Group 1: Company Actions - Hema's last membership store in Shanghai will close on August 31, following the earlier closures of its stores in Beijing, Suzhou, and Nanjing on July 31 [1] - The decision to close all membership stores is part of a broader strategy by Hema's parent company, Alibaba, to streamline its retail operations by divesting from various retail assets [1] Group 2: Market Context - The competitive landscape for membership stores in China has intensified, leading to a slowdown in overall expansion within this segment [1] - Hema is reallocating resources to focus on its core businesses, including Hema Fresh and Hema Neighbor Business [1] Group 3: Store Conditions - Observations from the Beijing store indicated that the entrance was closed, allowing customers to enter only through the exit without membership verification, and most shelves were nearly empty with only a few discounted items remaining [1] - During a half-hour visit, only five customers were seen in the store, none of whom made purchases, highlighting a lack of consumer interest [1]