Meituan Scaling down Ella Supermarket Outlets

Chinese food-delivery website Meituan has closed three of its Ella Supermarkets in Jiangsu, almost halving its network of outlets.

The business initiative, which sells fresh supermarket produce online for fast home delivery, has just four remaining locations in Beijing and Wuxi.

The closures were reportedly put down to mismanagement, and stand in stark contrast to the company’s stated plans to open 20 outlets within last year.

Its shortcomings are reflected by competing brands, however, with rival groups Yonghui Super Stores, 7Fresh and SuFresh also performing under par. Alibaba’s Hema offering is an exception with reportedly strong trading.