Has Boxmat Snatched Away from Sam's Club?
Summary:
The last Boxmat X member store in Shanghai will cease operations on August 31st.
Phoenix Technology News
Author | Wang Xinxin
Editor | Dong Yuqing
August 5th news, multiple Boxmat X member stores have recently closed. First, the Beijing World Window store posted a notice announcing that it would stop operating on July 31st, followed by Suzhou Xi'an store, Nanjing Yanzijiao store and other nationwide Boxmat X member stores that closed on the same day.
According to an insider familiar with Boxmat, "removing the member store business is actually part of the planning, but due to different store lease planning issues, there was a time gap."
The demise of Boxmat member stores: a pre-planned closure
The member store was once seen as an important force in seeking the second growth curve, targeting Sam's Club and Costco.
On October 10th, 2020, the first Boxmat X member store opened in Shanghai. Eight months after its opening, Boxmat X member stores began to expand nationwide, with new stores opening in Beijing's Daxing District; by December 8th, 2021, four Boxmat X member stores had quickly landed, marking a peak of expansion.
However, this expansion momentum did not continue. In early 2024, signs of closure emerged. On March 3rd, the Boxmat X member store in Shanghai's Rulang District announced its closure, followed by other stores such as Gaolan and Dongheng.
A source close to Boxmat told Phoenix Technology News that "removing the member store business is actually part of the planning, but due to different store lease planning issues, there was a time gap."
In late 2024, Boxmat's CEO, Yan Xiaoli, released an internal memo announcing the company's future strategy: focusing on fresh produce and NB stores. "The continuous closure of X member stores is part of this strategy," said the source.
At that time, Alibaba's multiple innovation boards received requirements to enhance profitability, with Boxmat also included. According to Phoenix Technology News' earlier understanding, Boxmat has continued to make losses since last year and officially achieved profitability in Q3; afterwards, its official statement revealed that it had reached its full-year profit target from April 2024 to March 2025.
"In reality, the member store was never a major player, with Boxmat's fresh produce having over 400 stores. It would be hard to impact Boxmat's fundamental business," said the source.
Will the closure of X member stores affect member benefits?
"Not at all, because Boxmat's member benefits originally covered both X member stores and fresh produce stores," said the source. Additionally, the store's notice closing announcement also explicitly stated that the closure would not affect member benefits, with existing members still able to enjoy online shopping, peripheral fresh produce store services, and support for refunding remaining days.
On August 4th, Taobao 88VIP officially announced a new member benefit: users can receive a valid Boxmat X member experience card with a validity period of 90 days.
Consumers also expressed a general consensus that the adjustment of member benefits would have little impact. "Boxmat should focus on its differentiation and not blindly follow Sam's Club and Costco's warehouse-style member store model," said one consumer who spoke to Phoenix Technology News, adding that consumers believed Boxmat should prioritize local consumer habits and deep-seated advantages in its own market.
Some consumers even suggested that "Boxmat should focus on product quality control." They believe that Boxmat's competitive advantage lies in the quality of its products, focusing on local retail with a emphasis on efficiency rather than following Sam's Club and Costco's big-box store model.
The retail industry has been white-hot for years, and Boxmat has also faced strategic oscillations. To expand further, Boxmat has opened at least 11 types of stores within seven years.
Boxmat's founder Hou Yi tends to "go up" and engage in a life-or-death battle with Sam's Club. In the summer of 2023, Boxmat officially launched its price war, using the discount store model to operate.
Sam's Club, as a membership-based retailer, has long been a thorn in Boxmat's side. To snatch more middle-class consumers, both sides have adopted increasingly similar models, with Boxmat X member fees initially set at 218 yuan per year and later increased to around 300 yuan per year.
However, this market has already become very intense, with Sam's Club and Costco having established mature commercial models. In recent years, the membership-based retail industry has been extremely competitive, with many brands facing the challenge of retaining customers while meeting the high requirements for product quality and supply chain management.
Moreover, Boxmat has also joined Taobao 88VIP, which has become a major traffic entrance. Another insider believes that this is a good starting point, saying that "for Boxmat, relying on Taobao 88VIP can bring in a large number of trial members, which is an added growth for Boxmat."