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BUSINESS

Can a Local Supermarket Save China’s Offline Retail Sector?

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Despite the economic downturn, Pangdonglai, a once-obscure regional supermarket, is thriving—yet its success may be difficult to replicate

Last December, Liu Yi drove over 700 kilometers from Beijing to Xuchang, a city in central China’s Henan province that until recently was mostly known for making wigs. Her destination was a supermarket called Pangdonglai, where she had a simple mission: to buy bean sprouts.

“At just 1.8 yuan per package, you get bean sprouts without any additives,” says the 31-year-old, who asked to use a pseudonym for this piece. But she found plenty more to excite her at Pangdonglai, besides a reputation for quality and food safety: magnifying glasses for senior shoppers to read labels, rest areas for pets, patient employees, and free parking—all making the hours-long drive, plus the additional hour she spent in the check-out line, worthwhile. “The employees...help pack your groceries and answer all your questions. You can clearly see how much everything costs, unlike online platforms where they show different prices for different people.”

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