The first Wal Mart store in the mainland closed down? E-commerce or membership? Where is Wal Mart's survival path?

Speaking ofChain supermarketI believe almost every familiarbusinessmarketEveryone will sayWal-MartCarrefourIt is true that Wal Mart is a model of the world's chain supermarkets and a market leaderShopping MallWal Mart, the pioneer of the store model, once relied onborrowWith their own strongbusiness modelSweeping the world to become the most popularsupermarketbrandRecently, however, Wal Mart's first store in China closedClose down, what should we think of this? Where is Wal Mart's survival path in China?

1. Wal Mart, the first store in the mainland to close down?

According to《negotiable securitiesAccording to a report in the daily, a few days ago,chainretailGiant Wal Mart announced that its first store in mainland China would close in December, attracting much attention from the outside world. It is understood that the store opened in 1996 and has a history of 25 years. havestatistical dataIt shows that in the first half of this year alone, Wal Mart closed 11 stores in China, while the number of stores closed in the past six years was as high as more than 80.

The reason is that Nandu reported the first one in Shenzhen and even mainland ChinaWal Mart supermarket, Honghu Wal Mart is about to withdraw,newsOn a hot search. Many Shenzhen citizens also expressed their reluctance to withdraw and close their stores. After that, Wal Mart China replied to Nandu that becauseownerFang jiangduiPropertyAfter the overall upgrading and transformation, the site of Honghu Wal Mart will be recovered by the owner and the store will be closed. According to the reply, the Wal Mart store located in Hujing garden, Honghu Road, Luohu District, Shenzhen will start on December 7business suspended

Honghu Wal Mart is located at No. 30 Honghu Road, opposite Honghu park. The business site of the supermarket is 1-3 floors of Hujing gardenPodium, the first Wal Mart in the mainland, opened in 1996. On Honghu road at the gate of the podium building, there is also a "Honghu"Wal-Mart”Bus stop.

It is understood that Honghu Wal Mart rentedChina ResourcesThe podium building on floors 1-3 of Hujing garden has completed a large number of propertiestransaction, this transaction is handled bySavillsfacilitate. Savills Shenzhencompanydirectorgeneral managerWu Rui told the author that theprojectAs the subject of the transaction, Savills was listed last yearteamStudy the project in depth at the beginning of this year and cooperate with the buyercustomerJointly investigate the podium project. After working with the original owner and Wal MartconsultWe reached an agreement on moving out a few months ago and completed the transaction with China Resources, which is about 17000 MbusinessThe counterparty of the podium building is aInternational Fund

Since 2010,online retailersChina's rapid developmentRetail formatRapid changes, physical stores are impacted,retailStoresChain supermarketDepartment StoreSuccessivelossClose down。 Incomplete dataStatistics, from 2016 to 2020, Wal Mart China closed about 80 stores. As of September 2021, Wal MartHypermarketin ChinamarketStoredataFrom 403 at the beginning of the year to 378.

Wal Mart announces 2022Fiscal yearSeason 3Financial ReportShows that the total revenue reached 140.5 billiondollarYear on year growth4.3%, parentNet profitDown nearly 40%. However, Wal Mart'sSam's ClubBut the revenue increasedtrend, Sam's club in the third quarter of fiscal year 2022sales volumeAn increase of 13.9% and a cumulative increase of 25% in the two years.

2. Where is Wal Mart's survival path?

faceWal-MartIn the domestic store closures, although we can see that most of Wal Mart's store closures in the past five years are due to the expiration of the lease, it has become an indisputable fact that the number of closed stores exceeds the number of new stores. In the face of the market recession, does Wal Mart have any hope of reversing the situation?

First, e-commerce forsupermarketThe impact of mode has become an irresistible trend. After 2010, China's e-commerceindustryIt presents an unprecedented large-scale outbreak situation. Under such a background, the wholeconsumptionFundamental and profound changes are taking place in the market pattern, and e-commerce is gradually beginning to dominateretail marketAccording to emarketer survey data, China's e-commerce sales will reach US $2.779 trillion, accounting for 52.1% of the whole retail market, a significant increase compared with 44.8% a year ago. It will also remain flat in recent yearsSteady growth, it is expected to grow to US $3.565 trillion by 2024, accounting for 58.1%.

In this context, the traditional supermarket model has suffered an unprecedented impact,dataIt shows that since last year, including YonghuiBailian, jiajiayueStep by step13 national enterprises including Zhongbai grouplistTypical supermarketcompanyThe quarterly revenue of showed a downward trend.

In the first quarter of last year, the revenue of these companiesaverageThe growth rate was 1.59%, while the average growth rate of revenue from the second quarter to the fourth quarter was - 2.52%, - 5.34% and - 7.44% respectively. It can be said that the epidemic has accelerated the large-scale reshuffle of the supermarket industry. Affected by the epidemic, most ordinary people's daily lifeConsumption habitsFundamental changes have taken place, and thistrendOnce formed, there is almost no possibility of reversalmarketIn factWal-MartA series ofShopping MallenterpriseDirectly into a full-scale recession,transformationUpgrading is imminent.

Second, the lack of genes makesonline retailersIt is increasingly difficult to transform. facesupermarketThe difficulties faced by major supermarket enterprisesactuallyIn the past few years, most supermarkets are actually changing. The general idea is that since the trend of e-commerce is irreversible, supermarkets might as well embrace e-commerce. However, we see that both Yonghui supermarket andtencentThe union, orRT MartSupermarkets andAliThe cooperation is basically unsatisfactory. In recent years, large-scale business supermarkets that have made online and offline integration transformation, in addition to directinternetBred inBox horse freshIn addition, most of them have not achieved real transformation. Although Wal Mart, including Wal Mart, has also obtained the cooperation of e-commerce, it has not really reversed.

The core reason is that for the current supermarket enterprises, e-commerce has its fundamental gene, and the gene of e-commerce isdigitization, lightassetsOnline and offline integration, this comprehensive e-commerce transformation is not simplecommodityMove online and get aElectronicsCommercialized commercesystem, or dockingtake-out foodDistributionThe platform can solve the problem. At present, a series of traditional large supermarkets represented by Wal Mart actually do not really grasp the essence of e-commerce, but their ownPath dependenceIt also makes it almost impossible to be completely transformed into e-commerce, and the final result is to learn four different things from e-commerce.

Third, where is Wal Mart's survival path? For the currentWal-MartA series of large supermarkets represented byenterpriseFor example, it may be necessary to carry out transformation. Simple e-commerce is not the idea to solve the problemshouldFrom the wholemarketFrom the perspective of Wal Martonline retailersGenerally speaking, there are three directions for layout:

First, for themselvesSupply chainComprehensive systemLeanDigitaltransformationborrowHelper numberscience and technologyFor Wal Mart's own supply chain systemDigital transformation, through the construction of digital system, Wal Mart's supply chain can be leancostControl, uselean management The concept of Wal Mart continues to improvecost controlabilitySo as to reduce the cost consumption in the supply chain.

Second, carry out comprehensivememberMarket-oriented development.actually, Wal Mart has reallyZhengdaScale development and expansion onlySam's Club, the reason why Sam's club can be accepted by the marketaccept, its corelogicLies in itselfproductHighqualityAnd not making money on goods, this model is actually very usefulvalueHowever, the cost of Sam's club itself is too high, and its essence is still Europe and AmericaElitismofConsumption concept, ChinaneedMembership market, but it may not be just Sam's club. For Wal Mart, further market transformation is needed to make more civilian membersconsumptionFurther improvement.

Three iswarehouse-type supermarketThe model is feasible, but we must learn to rush. Recent majorsupermarketThe giants are also interestedWarehouse supermarketFrom the perspective of market development, warehouse supermarket is a feasible marketDevelopment modelBut the biggest problem isMarket spaceLimited, the general view in the industry is that China supports warehouse supermarketscityThe number is still small, no more than 50 in a short time, and about three in each city, even in large cities, is enough, and generally one in small cities, which is very important forWal-MartThe biggest problem is whether we can achieve the rush.

Therefore, the closing of Wal Mart's first store is not a big problem, but the core problem is still thistransformationWhere should I go?

Statement: This article only represents the author's point of view, not the position of MBA think tank.
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Jiang Han Daniel

WeChat official account: Jiang Han's field observation (ID:jianghanview); Financial columnist, master of Renmin University of China. Engaged in Internet Finance and real estate economic research.