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Missfresh closed its business in 9 cities within 3 days

Battle for operational scale gave way to the battle for efficiency

Recently, Missfresh was revealed to have closed its business in 9 cities within 3 days. On June 30, Missfresh closed its business in Suzhou and Nanjing; on July 1, closed in Hangzhou, Qingdao, and Shenzhen; on July 2, closed in Guangzhou, Jinan, Shijiazhuang, and Taiyuan.

In response to this, Missfresh said that due to business adjustments, the business of express delivery in the above-mentioned 9 cities was temporarily closed, and users could not buy fresh products. The above cities currently retain the online service of supermarkets, and the fastest delivery is the next day.

According to the report, in order to achieve profitability, Missfresh has indeed adjusted the delivery service in some areas, and closed stores with serious losses one after another. The idea of ​​withdrawing the business from those cities is an exaggeration.

For business operations in low-tier cities, in addition to the above-mentioned next-day delivery, Missfresh has carried out a multi-dimensional layout under the background of multiple business formats: on the one hand, it digitally transforms the traditional vegetable market, and on the other hand, small and medium-sized supermarkets are empowered through online retail.

Data shows that Missfresh Smart Market has now expanded to 20 cities; and its online retail business has signed cooperation agreements with more than 50 offline retail companies since its launch in 2021, helping some clients' online businesses grow by up to 20 times.

It is worth noting that Dingdong Cayman has also recently issued "announcements of stopping services " in Xuancheng, Chuzhou in Anhui, Zhongshan, Zhuhai, Qingyuan, Jiangmen in Guangdong, Tangshan, Langfang in Hebei and Tianjin. In this regard, Dingdong Cayman also responded that it was cutting down stores with serious losses.

Regarding the adjustment of these two fresh food e-commerce businesses, industry insiders said that on the one hand, the pandemic situation has improved, and the demand for online fresh food in low-tier cities is shrinking. It is also the most sensible choice for profitability in the current environment. When the capital returned to normal, the two companies chose to "slim down" and transformed from the growth of operational scale to the growth of service quality. Both of them have realized that a healthy and sustainable profit model is the key to the next stage.

Source: Online information

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