Golden Eagle suspends Hefei stores trading

1 min readUpdated May 28, 2025May 7, 20154:00 AM

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Chinese retailer Golden Eagle says its Hefei Baihuajing Store and Dadongmen Store will suspend operations from Sunday May 10, due to a lease dispute and subway renovation.

Golden Eagle Retail Group said in a statement that the dispute relates to property rights and constraints in operational conditions.

“Our Baihuajing Store is located at a leased property, which is owned by a third party. A property rights dispute has led to insurmountable difficulty in carrying out our normal operation in Baihuajing Store.

“Meanwhile, the operation of our Dadongmen Store, which has long been affected by subway construction, is unable to meet Golden Eagle’s consistent standards for customer service. Upon serious consideration, the group has decided to suspend the operation of the two stores”

Golden Eagle said the suspension of operations would have little material impact on the group’s overall operations and sales.

“The total gross floor area of the group’s retail chain stores is 1,534,387 sqm, while that of Baihuajing Store and Dadongmen Store are 12,294 sqm and 10,356 square meters, respectively.”

“Despite the suspension of operation of Baihuajing Store and Dadongmen Store, Golden Eagle will continue to provide customers in Hefei with outstanding and thoughtful services. VIP customers and holders of Golden Eagle’s other membership cards can enjoy the same services in our Hefei Suzhou Road Store (4 Suzhou Rd, Luyang District, Hefei City) or any other Golden Eagle stores all over the country.

“In addition, our Hefei Suzhou Rd Store will continue to offer one-stop aftersales service to customers for products return or exchange to ensure satisfactory shopping experience,” Golden Eagle said.

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What this means

Golden Eagle's decision to suspend two Hefei stores appears a pragmatic move to shed underperforming assets linked to external pressures like property disputes and ongoing subway construction. While the company minimises the impact, stating the closed stores represent a small fraction of its total floor area (12,294 sqm and 10,356 sqm out of 1,534,387 sqm), such closures pressure the brand's immediate visibility in key urban areas. Consolidating services at the Hefei Suzhou Road Store, alongside offering nationwide VIP continuity, suggests a defensive strategy to retain customers rather than aggressively expand. This contrasts with rivals who might be navigating similar urban development challenges differently. The key will be monitoring foot traffic and sales performance at the remaining Hefei store over the next quarter.

Wei Zhang

Questions & Answers

What are the specific reasons given for suspending the operations of the Hefei stores?

The Baihuajing Store is suspending operations due to a property rights dispute affecting its normal functioning. The Dadongmen Store's operations have been unable to meet Golden Eagle's service standards due to ongoing subway construction in its vicinity.

How significant is the impact of these store suspensions on Golden Eagle's overall business?

Golden Eagle stated that the suspension of these two stores will have little material impact on the group's overall operations and sales. The combined floor area of these stores is a small fraction of the group's total retail chain footprint.

How will Golden Eagle customers in Hefei be affected by these closures?

Customers in Hefei can continue to use Golden Eagle services at the Hefei Suzhou Road Store or other Golden Eagle stores nationwide. The Hefei Suzhou Road Store will also provide aftersales service for returns and exchanges.

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