In 2025, China's supermarket industry underwent a profound transformation. Traditional hypermarkets accelerated their decline with widespread store closures, while membership stores and discount supermarkets emerged as the new growth engines. This shift marked the industry's evolution from extensive expansion to an era of refined operations focused on customer segmentation and operational efficiency.
Membership Stores: The Dual Strategy of Premiumization and Regional Expansion
With precise customer targeting, membership stores have become the industry's growth driver, led by market pioneer Sam's Club.
Sam's Club: Accelerating Expansion Toward 100-Store Goal
In 2025, Sam's Club China maintained strong growth, with membership exceeding 10.7 million and sales reaching 14 billion yuan, a 40% year-on-year increase. The retailer opened a record 10 new stores, bringing its national total to 41 locations.
For 2026, Sam's Club plans to open 16 new stores across 10 cities, including first-time entries into Shijiazhuang, Jinan, and Qingdao. By year-end, the company expects to reach 57 stores, moving closer to its 100-store target.
Market Competition Shifts to Regional Density
The membership store competition has evolved from city coverage to regional density and customer loyalty. Metro AG is expanding its presence with a new Plus store in Zhengzhou scheduled for April 2026.
Costco maintains steady global expansion, operating 873 warehouse stores worldwide as of November 2025. In China, Costco operates 7 locations and plans 30 new global stores in fiscal 2026.
Discount Stores: Rapid Expansion and Multi-Channel Strategies
Discount formats are gaining traction, with traditional retailers and e-commerce platforms adopting different expansion approaches.
ALDI: Steady Growth in China
Since entering China in 2019, ALDI has maintained controlled expansion. The company opened 30 stores in 2025 and launched four Nanjing locations in January 2026. With 88 stores nationwide, ALDI expects to surpass 100 locations by Q1 2026.
E-Commerce Giants: Omnichannel Integration
JD.com is expanding its discount supermarket chain, planning 30 new stores in 2026 across Hebei, Shandong, and Henan provinces. The company is building a "regional warehouse + front store + instant delivery" network.
Meituan is rapidly expanding its Happy Monkey discount stores, with plans to open new locations in Shanghai, Beijing, and Guangzhou. The company aims to develop a "offline experience + 30-minute delivery" urban network.
Freshippo (Hema) is accelerating expansion, with plans for 300 new stores in 2026 across its two main formats. The company expects annual GMV to exceed 100 billion yuan.
Traditional Supermarkets: Polarization and Transformation
Traditional hypermarkets face significant challenges from declining foot traffic and operational pressures.
Store Closures and Strategic Adjustments
In the first half of 2025, over 500 supermarket stores closed nationwide. Yonghui Superstores closed 50 underperforming locations while renovating 150 others as part of its transformation strategy.
Pang Donglai: A Transformation Success Story
Pang Donglai achieved 38% sales growth in 2025 and will open its first Zhengzhou store in 2026, marking its regional expansion.
Industry analysts note that traditional retailers must develop unique competitive advantages through operational efficiency and customer experience to survive the industry transformation.