Yihan Ma
Research expert covering e-commerce and FMCG in Greater China
Supermarkets and hypermarkets in China - statistics & facts
In the two past decades, supermarkets and hypermarkets experienced immense success in China. Those spacious and well-organized stores replaced conventional wet markets and became the primary grocery shopping destination for Chinese consumers. At one point, over 33,000 supermarkets were scattered across the country. However, this number has significantly declined since 2017, challenged by the rise of e-commerce and the impact of the COVID-19 pandemic since 2020.
The advancement of digital retail has permanently transformed China's retail landscape, as consumers increasingly demand a more timely and convenient grocery shopping experience. The adoption of new retail technologies has created fresh opportunities for traditional supermarket and hypermarket operators to regain their consumers.
The rise of supermarkets and hypermarkets in China
The history of supermarkets in China dates back to the 1980s when self-service stores were a novelty and primarily catered to foreigners and overseas Chinese. However, the 1990s marked the golden age of supermarkets in China, as changing consumer habits and increasing income fueled their rapid expansion. This period not only fostered the growth of domestic retailers such as WuMart and Lianhua but also attracted global retail giants, such as Carrefour, Metro, and Walmart, to enter the thriving Chinese market.The digital disruption faced by Chinese grocers
In the early 2000s, supermarkets emerged as a primary shopping destination for urban Chinese residents seeking daily necessities. However, the industry soon encountered significant challenges with the rapid rise of e-commerce. Advancements in transportation infrastructure and cold-chain logistics enabled consumers to conveniently order fresh produce and other groceries with just a few clicks, eliminating the need for traditional in-store shopping.Innovative strategies for the future of supermarkets
To counter the growing threat of digital retail, supermarket and hypermarket operators in China sought to integrate an online-to-offline (O2O) retail model alongside their traditional in-store operations. Leading supermarket and hypermarket chains now offer online shopping options through dedicated apps or mini-programs integrated into WeChat and Alipay. Consumers can not only browse a wide range of products on their mobile devices but also place orders and receive deliveries within just 30 minutes.The advancement of digital retail has permanently transformed China's retail landscape, as consumers increasingly demand a more timely and convenient grocery shopping experience. The adoption of new retail technologies has created fresh opportunities for traditional supermarket and hypermarket operators to regain their consumers.
