Like other grocery retail channels, hypermarkets remained open during the COVID-19 lockdowns. The pandemic therefore had little impact on the channel, with sales remaining fairly stable throughout the review period, including in 2020 and 2021.
Hypermarkets with solid channel integration prior to the pandemic were in a better position to compete compared with pure bricks-and-mortar retailers. During pandemic lockdowns, when people were forced to self-quarantine at home and avoid leaving home to minimise the risk of cross-infection, hypermarkets with hyperlocal delivery options allowed consumers to place orders via mobile apps and have goods delivered to their door within 30 minutes.
The acquisition of the second player in hypermarkets, Sun Art Retail Group (the operator of Auchan and RT Mart hypermarkets in China), by Alibaba has taken their cooperation one step further. RT Mart is now serving as a fulfilment centre for Tmall Supermarket’s online orders – RT Mart’s own one-hour delivery business shares the same conveyor belt system with Tmall Supermarket’s half-day delivery, aiming to improve picking efficiency and reduce the risk of stock running out.
Shopping at hypermarkets at the weekend was considered as a family activity, but China’s family size is getting smaller, whilst hectic lifestyles in higher-tier cities and the shift towards online shopping are leading to a loss of foot traffic for hypermarkets. The pandemic only accelerated this shift.
Similar to all store-based retailers, digital upgrading will be vital for the success of hypermarket operators in the forecast period. The pandemic has already accelerated the adoption of various new technologies, including self-checkout machines with facial recognition payment options for contactless shopping.
An increasing percentage of sales of hypermarkets are through hyperlocal delivery. RT Mart is the leading player in terms of hyperlocal delivery, accounting for over 20% of its total sales.
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Understand the latest market trends and future growth opportunities for the Hypermarkets industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Hypermarkets are chained or independent retail outlets with a selling space of over 2,500 square metres and with a focus on selling both grocery and non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites with large parking lots or as the anchor store in a shopping centre. Example brands include Carrefour, E Leclerc, and Walmart Supercenter.
See All of Our DefinitionsThis report originates from Passport, our Hypermarkets research and analysis database.
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