As reported by Yahoo News on November 23, the economic downturn in mainland China has resulted in a wave of retail store closures.
Carrefour, a major French retailer, has suffered the same plight, closing one of its stores in China every three days on average.
The last Carrefour store in Henan was closed on November 15. It displays a card refund notice in the front door.
Carrefour was the first batch of foreign retail enterprises to enter mainland China. It has been in Henan for 16 years and has opened 16 stores, all of which have been closed in disgrace. According to relevant statistics, as of the end of September this year, the number of Carrefour supermarkets in mainland China, dropped to 151, which is 54 less than that of last year.
The recent news of a shopping coupon failure and some empty shelves at Carrefour outlets in Kunming, Yunnan Province, has also triggered speculation about whether the company is also going to exit Kunming.
However, Carrefour Kunming PR manager Gao Fei said that the company is just going to “make a supply chain adjustment,” including the conversion of some low-selling single products and high-selling ones.
In addition to Carrefour, Walmart closed more than 30 stores in China last year. China’s large local supermarket chain, Yonghui Supermarket, closed hundreds of stores one after another, evaporating 84 billion yuan (nearly $12 billion) in market value.
One supermarket building manager said that it has no daily turnover and it doesn’t have a penny. He wondered what he could do if the business couldn’t support employees for a day.
Lu Media pointed out that in addition to the economic recession and strict zero-COVID measures, the leasing contract was another factor. Hypermarkets are generally leased for 10 to 20 years. After the golden age, when leasing expired, the rent of new contracts became more expensive, compounded by increasing labor costs, making supermarket giants remove their businesses.Carrefour was founded in 1959 in France. It is the 8th-largest retailer in the world by revenue. It operates a chain of hypermarkets, groceries stores and convenience stores. At the end of 2021, it has nearly 14,000 stores in 30 countries. The retail giant opened its first store in Mainland China in 1995. After more than 20 years of business, it has become the 7th largest retailer in China.