Meituan Scaling down Ella Supermarket Outlets
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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.
Questions & Answers
Q.How many Ella Supermarket outlets does Meituan still operate after the closures?
How many Ella Supermarket outlets does Meituan still operate after the closures?
Meituan now operates four Ella Supermarket locations. These remaining outlets are situated in Beijing and Wuxi after three stores in Jiangsu were closed.
Q.What reason was given for the closure of the Ella Supermarket outlets?
What reason was given for the closure of the Ella Supermarket outlets?
The closures were reportedly due to mismanagement. This contrasts sharply with Meituan's earlier intentions to significantly expand its Ella Supermarket network.
Q.Are other similar businesses performing poorly, or is Meituan's Ella Supermarket an isolated case?
Are other similar businesses performing poorly, or is Meituan's Ella Supermarket an isolated case?
Competing brands like Yonghui Super Stores, 7Fresh, and SuFresh are also performing below expectations. However, Alibaba's Hema offering is noted as an exception, reportedly trading strongly.
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