Membership stores and community supermarkets in China saw rapid expansion in recent years as they diversified brands, business formats, and store types, according to latest report released by the China Chain Store & Franchise Association.
The report highlighted that the number of membership supermarket stores in China grew from less than 40 in 2020 to over 120 in 2021, and is expected to increase to 180 in 2022.
Supermarkets’ membership and discount stores reduced costs through direct sourcing, simple packaging, and optimized logistics and offer more competitive prices which attract consumers.
In 2021, online sales of member stores accounted for about 68 percent of their total sales, up 6.9%.
China’s community and convenience stores also boomed amid the efforts to set up more conveniently-located smaller stores within urban towns or enclaves. Some supermarkets have diversified into high-end community stores to attract more customers.