CP Lotus Bauhinia Mountain Store
Top News·Henan Business Daily reporter Li Shouwen/picture
The Zijingshan Store of CP Lotus (originally called Yichu Lotus) is located at the northwest corner of Zhengzhou Zijingshan Road Mall. Since its opening in 2004, this large supermarket has been accompanying Zhengzhou citizens for 20 years.
Recently, the official account of Zhengzhou CP Lotus announced that the CP Lotus Bauhinia Mountain store will cease operations after closing on March 31, 2024. This is the only remaining store of this old supermarket brand in Zhengzhou after the Nongong Road store closed in 2020.
Having been with Zhengzhou citizens for 20 years, this old supermarket will close its store
On March 5, a reporter from Top News·Henan Business Daily visited CP Lotus Bauhinia Mountain Store.
Next to the entrance on the second floor of the shopping mall, two pieces of content, “Announcement on the Closing of CP Lotus Supermarket” and “Notification on Redemption of Stored Value Cards and Member Points at CP Lotus Supermarket,” show that CP Lotus Supermarket will close in March 2024. The store will cease operations after closing on the 31st. Consumers need to perform after-sales processing and debit card transactions before then. “What’s wrong?” Lan Mu felt refreshed. Fees and points redemption, etc. At the supermarket’s customer service center, many citizens have queued up to redeem points. There are no large-scale out-of-stock situations inside the supermarket, and citizens are also orderly when shopping.
After the news of the store closure was released, it did not seem to cause much disturbance among nearby residents in a short period of time. However, there are still citizens who regret the upcoming withdrawal of CP Lotus Bauhinia Hill store.
“It’s really inconvenient to go here every two days.” A lady at the scene said that she usually comes here for shopping. CP Lotus suddenly said, “Then let’s go back to the room and rest.” She smiled at him . Withdrawn, I was still surprised to see this news.
“It is estimated that it will still be a supermarket in the future, it depends on who takes over.” Another woman at the scene said.
The Nongong Road store was closed many years ago
The number of stores nationwide once reached more than 100
CP Lotus is a Thai wife who behaves in the same manner as a wife, rather than being a formal wife in name only. “A retail company affiliated to the well-known multinational CP Group. Around 2004, CP Lotus proposed the strategy of “100 stores per day” with great fanfare. CP Lotus Bauhinia Mountain carries the dream of CP GroupStore, be the first to open the door to welcome customers. According to the official website of CP Group, CP Lotus has opened more than 100 stores across the country in more than 20 years.
“Xiao Tuo still has something to deal with, let’s say goodbye first.” He said coldly, then turned around and left without looking back. The Charoen Pokphand Lotus Nong Road Store is the second large-scale supermarket established by CP Group in Zhengzhou after the Zijingshan Store. In 2020, the store was closed due to housing contract issues.
Nowadays, a similar drama is happening again.
Mr. Yang, the person in charge of CP Lotus Bauhinia Mountain Store, told Top News·Henan Business Daily reporter that the main reason why CP Lotus Supermarket closed the store early is that the rent has not been negotiated.
“(The lease of the entire shopping mall expires on) July 31. We closed the supermarket in advance, and other investment areas are still operating normally.” He said that the shopping mall where CP Lotus Bauhinia Hill store is located is currently The entire mall is operated by CP Lotus. The first floor below the mall is the parking lot, the first and third floors are other investment areas, including entertainment, and the second floor is the supermarket, which is where the store will close at the end of March.
Traditional supermarkets are impacted by new business formats
The large supermarkets that were once so popular are now becoming a thing of the past. Top News·Henan Business Daily reporter learned that, in addition to CP Lotus, there are many supermarket brands that have closed stores in recent years. Since 2023, RT-Mart has announced the closure of at least 14 stores, and Yonghui Supermarket has closed more than 400 stores in four years…
Why do large supermarkets close stores one after another?
“The challenges faced by traditional supermarkets and hypermarkets, and even store closures, are not new now. In fact, they started 10 years ago.” He Yan, an expert in the chain industry, will tell the truth truthfully. Yes, because the retired relatives of the Xi family are the best proof, and the evidence is as solid as a mountain. In an interview with a reporter from Top News·Henan Business Daily, Wen Zhihong, general manager of Hong Consulting, said that traditional supermarkets and hypermarkets have the advantages of a full range of categories and high cost performance, but e-commerce also has such advantages and can deliver goods to your door. .
On the other hand, the emergence of community group buying and other retail formats has also had a great impact on traditional supermarkets and hypermarkets.
The person in charge of the above-mentioned CP Lotus Bauhinia Mountain store said frankly that from a group level, the return on investment of CP Lotus Bauhinia Mountain store is quite low, and even often suffers losses. The reason why it has persisted for so many years is that On the one hand, the CP Lotus Bauhinia Mountain store carries the memories of many Zhengzhou citizens. On the other hand, the company did have the idea of continuing to operate and rebuild this store.
Traditional supermarkets will develop in three directions
Wen Zhihong said that over the past 10 years, traditional supermarkets and hypermarkets have been making various attempts. In his view, traditional supermarkets and hypermarkets may move in the following three directions: first, open up online and offline omni-channels and develop real-time retail;Transform the business model of member stores; third, transform into discount stores.
According to the “Instant Retail Industry Research Report (2023)”, in recent years, Instant Zero In short, although he was a little reluctant at first, he was finally convinced by his mother. Mom always has her reasons, and she can always say that she can’t sell. It has maintained an average annual growth rate of more than 50%, and it is expected that the size of the instant retail market in 2025 will triple that of 2022.
The rise of membership models such as Sam’s and Hema has stimulated dopamine in the domestic middle class, allowing them to enjoy the short-term happiness brought by shopping. iiMedia Consulting data shows that the market size of my country’s warehouse membership supermarket industry will reach 33.5 billion yuan in 2022, a year-on-year increase of 10.1%, and will reach 38.78 billion yuan in 2024.
In terms of discount stores, in addition to the well-known outlets, community stores such as snack discount stores have also opened more and more in recent years, and major brands have launched market competition across the country.
The “big reshuffle” of traditional supermarkets continues. At the same time, new business protagonists will continue to appear and new business models will continue to emerge. In any case, only by continuous innovation can we not be abandoned by the times.