Home Business Carrefour member store encounters supplier interruption on the day of opening, the traditional retail industry is facing weak growth and facing difficulties in getting out of it | Carrefour | Retail | Sam’s Club_Sina Technology_Sina.com

Carrefour member store encounters supplier interruption on the day of opening, the traditional retail industry is facing weak growth and facing difficulties in getting out of it | Carrefour | Retail | Sam’s Club_Sina Technology_Sina.com

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Original title: Carrefour member store encounters supplier cut-offs on the day of opening. Behind the lack of growth in the traditional retail industry, it faces difficulties in getting rid of it

On October 22, it was the day when Carrefour’s first member store opened, but it happened to be embarrassing: some suppliers evacuated by buying back their own products.

In this regard, Carrefour issued an apology letter late at night on October 22, which mentioned that the brand was pressured by competitors. On October 24, Carrefour stated that it had reported it to the relevant department, and the object of the report was Sam’s Club.

Suppliers repurchase and close supply on the day of opening

In recent years, many retail giants have expressed their love for member stores, including Sam’s Club, Metro, Costco, Hema and other retail companies have accelerated the pace of opening member stores in the Chinese market.

On October 22, Carrefour’s first member store opened, but news broke that some suppliers had evacuated the store by buying back their own products. Consumers who have been to the scene told the “Securities Daily” reporter that there is no difference on the surface, and there is no large number of empty shelves.

Late that night, Carrefour issued an apology letter stating: “On the first day of opening, competitors pressured suppliers to buy empty-related products, which prevented many member consumers from buying. In fact, from the establishment of Carrefour member stores to the opening, the competition To continue to put pressure on some brands, if the brand is supplied to Carrefour member stores, the products that the brand is competing for will be removed from the shelves. Even on the opening day, some brands have to go to the site to sweep the goods and buy out under the pressure of the competition. For all its products, we have frequently received news that the brand will no longer continue to cooperate.”

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As the situation progressed to October 24, Carrefour said it had reported the incident, and the object of the report was Sam’s Club.

In response, Sam’s Club responded to the “Securities Daily” reporter: “Sam has always focused on legal and compliance operations. We welcome healthy competition, because it will be beneficial to members. At the same time, we also vigorously call for and advocate for the industry: companies should focus on themselves. The development of characteristics, continuous innovation of products and services. This is the basis for the sound and healthy development of the entire industry. Product replication and homogeneous competition, the real loss will be the interests of consumers.”

“Friction” in the homogeneous supply of products

What needs attention is that behind the fact that suppliers are forced to stand in line, it is a phenomenon that the traditional retail industry’s operating conditions in recent years are not optimistic.

In June of this year, the relevant data released by the China Chain Store & Franchise Association showed that the sales volume of the top 100 chain stores in 2020 was 2.4 trillion yuan, a decrease of 7.2% from the previous year. Among them, the sales of 52 top 100 companies fell year-on-year, a decrease of 15.4%. The sales scale of the top 100 chain stores accounted for 6.1% of the total retail sales of consumer goods, a decrease of 0.2 percentage points from 2019. This is also the first negative growth in the overall sales of the top 100 companies since the statistics of the China Chain Store & Franchise Association in 1997.

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A similar situation can be seen from the financial report data of listed retail companies. According to data from Flush, as of October 24, many of the retail companies that have issued their third quarterly reports or released their performance forecasts for the third quarter reported losses at a relatively high level. “The domestic consumer market is gradually recovering, but due to the impact of community group buying business launched by many online platform companies, the competition in offline physical stores has intensified, and store passenger flow, sales, and gross profit margins have continued to decline.” A retail company said frankly.

In this context, many retail companies have targeted member stores with relatively high user stickiness and gross profit margins. Established member store companies have also accelerated their pace of development.

In September this year, Sam’s Club opened the world’s largest flagship store in China. At that time, Wen Ande, President of Sam’s Club China and Deputy CEO of Walmart China, said in an interview with a reporter from Securities Daily: Around 23.”

“The membership store business will not be adjusted. This is the direction of business development. More supply resources will also be explored.” Carrefour also told the “Securities Daily” reporter.

As more and more retail brands enter member stores, the competition index in this segment has risen sharply. As we all know, member stores that precisely meet the needs of consumers will devote more energy to product selection, reduce the number of categories, and concentrate on supplying superior products. This also makes the supply of products homogenized, branded, and supplier. The chemistry is becoming more and more serious. In order to improve this situation, it is the consensus of enterprises to increase the share of private brands. However, it can be seen from the current proportion of self-owned products presented by member stores that in the case of severe homogeneity, supply chain “friction” may be unavoidable. Regarding the progress of related events, the Securities Daily will continue to pay attention.

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