A new wave of supermarkets that opened in the past two years is already closing

Closures cluster in Xi'an and beyond

It has been reported that a number of supermarkets that opened in the last two years are now shutting their doors, underscoring a larger retrenchment across China's retail sector. In Xi'an, Wanjia City Supermarket (西安万家城超市), which opened late last year, has closed, and SEG Shopping Center (西安赛格购物中心) reportedly shuttered its self‑operated SAGA Fresh Food Hall (SAGA鲜食馆) after barely six months despite an investment of more than RMB 40 million. These are not isolated cases — industry observers say the uptick in openings has been matched by a growing “closing tide.”

Why copycat openings are failing

The pattern is familiar: many new entrants mimic the look and product mix of successful newcomers — Xianfeng Life (鲜风生活) and Pangdonglai (胖东来) are often cited as templates — rather than developing a distinct value proposition. It has been reported that Taoxiaopang (淘小胖) even entered Chongqing and reportedly set a first‑day sales record of about RMB 2.37 million; that success, however, has encouraged rapid imitation rather than careful learning. New stores typically spend heavily on premium fit‑outs, larger fresh and prepared‑food assortments and private‑label development, pushing initial investment into the millions and creating acute cash‑flow and spoilage risks that many small operators cannot absorb.

A harder, more competitive retail landscape

The retail landscape that produced today’s exemplars took years to build — supply chains, talent, brand trust and operational systems were established over a decade or more. Shortcuts do not substitute for that accumulation. Reportedly, some operators have even copied operational details blindly (buying far more shopping carts or launching private‑label ranges without a loyal customer base), amplifying losses. Meanwhile, incumbents and diversified players — including Meituan (美团) and JD.com (京东) — plus discount and membership formats continue to press margins and traffic. So what now? For many copycats the answer is bleak: unless new entrants find a real niche and the operational muscle to sustain perishable, labor‑intensive formats, closures will likely continue.