Core Viewpoint - Hema has decided to close all its X membership stores due to business adjustments, with the last remaining store in Shanghai set to cease operations on August 31, 2023 [2][4][5]. Store Closures - Hema X membership stores have been gradually closing since early 2023, with multiple locations in Shanghai, Beijing, Suzhou, and Nanjing shutting down [5][11]. - The last operational store, Shanghai Senlan Shangdu, will close on August 31, 2023, marking the end of the Hema X membership store format [4][8]. Customer and Employee Impact - Customers can refund their Hema X membership cards or transfer them to other Hema formats, such as Hema Fresh and Hema Mini, maintaining some benefits like discounts [8][9]. - Employees have reportedly been forced to transfer to other stores, with claims of contract changes and potential termination for non-compliance [3][13]. Business Model and Competition - Hema X membership stores were designed to compete with established brands like Sam's Club and Costco, featuring a warehouse-style layout and integrated online-offline services [11][15]. - Despite rapid expansion, Hema X faced intense competition and quality control issues, leading to a decline in customer satisfaction and store performance [10][13]. Future Strategy - Hema plans to focus on its core businesses, Hema Fresh and Hema NB, shifting away from the X membership store model [15]. - The company aims to open nearly 100 new Hema Fresh stores in the upcoming fiscal year, indicating a strategic pivot towards community-oriented retail [15].

Core Viewpoint - Hema is closing all its X membership stores due to business adjustments, with only one store remaining operational until August 31, 2023, marking the end of this retail format in China [2][3][6]. Group 1: Store Closures - Hema has announced the closure of multiple X membership stores throughout the year, with the last operational store located in Shanghai [3][5]. - The Beijing World Flower store has been completely stripped of equipment and is locked, awaiting a new tenant [5]. - Hema's customer service confirmed that X membership cards can be refunded or used in other Hema formats, such as Hema Fresh and Hema Mini [5][6]. Group 2: Employee Impact - Employees were reportedly forced to transfer to other stores after the closure, with claims of coerced contract changes and potential termination for non-compliance [12]. - The company has faced criticism for its handling of employee contracts and labor relations during this transition [12]. Group 3: Market Competition - Hema X membership stores faced intense competition from established players like Sam's Club and Costco, as well as local competitors like RT-Mart and Ole [8]. - Despite initial ambitions to compete directly with these brands, Hema's X membership stores struggled to maintain customer interest and quality standards [7][10]. Group 4: Future Strategy - Hema plans to focus on its core businesses, Hema Fresh and Hema NB, shifting away from the X membership model [12]. - The company aims to open nearly 100 new Hema Fresh stores in the upcoming fiscal year, indicating a strategic pivot towards community-oriented retail [12].