Maidelong banks on new retail mode for growth

Maidelong, formerly known as Metro China, has renovated one of its stores in Beijing by adopting domestic counterpart Pangdonglai's celebrated retail practice, which centers on consumer experience.

The launch marks the first step of Maidelong, a unit of Beijing-based retailer Wumart Group, toward a new membership-store format designed to demonstrate how a retailer can combine international sourcing and quality systems with localized innovation.

The remodeled store aims for both a cosmopolitan and down-to-earth vibe, with changes ranging from a curated product mix and expanded fresh-food counters to consumer-friendly services and employee care.

The product count has been streamlined to around 8,000 items, with an overall turnover rate of 55 percent, according to Maidelong.

Fresh categories have received the biggest boost, with bakery and deli counters having grown nearly sixfold. A redesigned toy section now brims with blind boxes, trending IP figures, robotic dogs and STEM kits — products aimed at both children and nostalgic adults. Pet care is another highlight, with new shelves devoted to gourmet pet foods.

Private-label products are key strengths of their store to keep prices and quality competitive yet differentiating. Wu Peiling, head of the store refurbishment project, said Maidelong's private-label brands — including M-Select — have taken center stage, accounting for over 70 percent of shelf space, posting double-digit sales growth for five consecutive years. Wu said about 200-300 new private-label items are expected to be launched annually.

Roughly 40 percent of all products are either exclusive or imported. Snacks, beverages and personal care products are the strongest performers.

Leveraging Maidelong's global sourcing capabilities, around 25 percent of the store's assortment is imported. Offerings range from Australian chilled beef ribs and Thai coconut water to Spanish craft beers, positioned alongside everyday staples at multiple price points.

"We don't chase numbers," Wu said. "We watch consumer sentiment and macro trends. Shoppers today are budget-conscious yet determined to upgrade their daily diets — clean labels and trusted ingredients are non-negotiable."

For Maidelong, the move is more than just a store upgrade — it represents a new strategic chapter in China to intensify localization to combat homogenization, particularly when the membership store format in the market is under pressure.

Alibaba Group's grocery retail arm Hema, also known as Freshippo, officially exited the membership store business earlier this month, after shuttering all Hema X locations as it pivots toward more profitable formats.

Sam's Club, the membership-only retail chain owned by Walmart Inc, has faced backlash from Chinese consumers over its recent introduction of mass market snacks that critics claim fall short of the brand's promise of premium quality. Despite that, Sam's Club has made progress in expanding in China during the first quarter, said consultancy Kantar Worldpanel China.

Overall, the membership store format has seen penetration up 3.6 percentage points year-on-year in the first quarter, Kantar said.

By borrowing best practices from Pangdonglai, Maidelong is seeking to adapt to an increasingly discerning Chinese consumer base.

Beyond products, Maidelong has sought to redesign the shopping experience itself. The company has rolled out a "no-interruption shopping" policy — meaning no unsolicited sales pitches, no loud card promotions and wider aisles for a calmer atmosphere.

A relaxation zone further softens the experience, offering free hot tea, microwave and ice services, along with a first-aid box, blood-pressure monitors, free stroller and wheelchair availability, and even pet-sitting. The additions are meant to turn routine errands into a relaxed, family-friendly outing, said the company.