A wave of supermarket closures has swept across China in recent years, with community grocery stores and large chains equally affected. One much-discussed example is Yonghui Superstores. According to the China Chain Store and Franchise Association, Yonghui Superstores ranked fourth in sales among Chinese supermarkets last year, but the company's 2025 mid-year report reveals it closed 277 loss-making outlets in the first half of this year. Many pundits are now examining the cause of these closures and conjecturing on their inevitability.

Yang Yeying (Dazhong Daily): The notion of "supermarket" has existed in Chinese households for only roughly four decades and now the once-booming Supermarket Age appears to be in decline. Two main factors account for this shift: First, lease expirations. Most brick-and-mortar supermarkets operate on 20 to 25-year leases, and many of those leases have been expiring since 2020. This has inevitably increased the number of store closures. Second, e-commerce growth and changing consumer habits. The rise of online shopping and shifts in buying behavior have led to a noticeable drop in foot traffic for traditional supermarkets.

Despite declining market shares, the experiential aspect of a physical store is still valued by most consumers—social interaction, impulse discovery and a tangible environment in which to unwind. In this sense, traditional supermarkets that can capitalize on these emotional and lifestyle dimensions may transform the perceived threat of closure into a strategic opportunity. 

Unlike the emotionally oriented traditional supermarkets, membership warehouse stores and new-style retail enterprises are distinguishing themselves in the offline retail space with more thoughtful services and differentiated products. Behind each novel format lies a handful of bestselling exclusive items—the true source of their competitive advantage. Today, younger consumers increasingly seek personalized, high‑quality products, which point out a future direction for physical stores.

Traditional supermarkets once played an irreplaceable role in meeting consumers' everyday needs. The rise of digitalization and smart technology should not be a force that squeezes them out; rather, it should be used as an opportunity to rethink their operation models. As long as the demand for wandering the aisles remains, physical stores will continue to exist.

Deng Hao (Ce.cn): Pang Dong Lai, which operates stores in Xuchang and Xinxiang in Henan Province, has been a standout in the Chinese retail market in recent years. They are even becoming local tourist attractions. Customers' most frequent praise for the chain is that it has good merchandise and excellent service, and is kind to its employees. Yonghui Superstores launched its own "Pang Dong Lai-style" reform in 2024 and several other supermarket giants are also piloting new models, including by adjusting product assortments to bring in higher‑quality at more reasonable prices and raising employee wages and benefits to boost staff motivation and engagement. Many of these outlets experienced a surge in business immediately after reopening.

The success of a company hinges on multiple factors, and for traditional supermarkets the key is to learn and apply new ideas in an innovative "fit-for-local" way that meets consumers' needs.

Qin Mengting (Changjiang Daily): New services continually emerge in the market to meet evolving demand. It doesn't matter which ones rise and which decline—consumers care about only which offers the most affordable and convenient service. However, the essence of retail has never changed; it has always been a response to human needs. Don't hastily doom physical supermarkets. As long as they understand what consumers need, they can carve out a niche in the competitive market. BR

Copyedited by G.P. Wilson 

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