The retail landscape in Jinan is undergoing a seismic transformation as new retail forces challenge traditional supermarkets to reinvent themselves. From high-end experiential grocery models to grassroots community stores, the battle for consumers’ wallets is intensifying, reshaping how Jinan residents shop for daily essentials.
In just the past few months, industry giants have accelerated their moves: Freshippo (Hema) opened three new stores in July, Yonghui Superstores launched two “Fat Donglai-style” remodels, Sam’s Club fast-tracked its construction, RT-Mart rolled out online warehouses, and Jiajiayue doubled down on its bakery strategy. This wave of activity signals what many analysts describe as the city’s “deep adjustment year” for supermarkets.
From “Selling Goods” to “Selling Experiences”
Supermarkets are no longer just about shelves and low prices. In Jinan, stores are rapidly pivoting toward “scene-based consumption,” where shopping merges seamlessly with leisure and dining.
At Yonghui Superstore’s Longfor North City Tianjie branch, remodeled three months ago in the style of Henan’s famed retailer Fat Donglai, crowds of weekend shoppers lined up at the bakery section. Signature items such as nut bread and cheese loaves frequently sell out within hours. Fresh-cut fruit now carries precise sugar content labels and markdown schedules — a detail-oriented approach that consumers say sets the store apart. Sales at this branch have surged over 400% since reopening, with customer traffic up more than 150%.
Meanwhile, Freshippo has built its identity around “shop-and-eat” experiences. At its Impression City store, customers queue at food counters for roasted duck and stir-fried dishes before dining in dedicated seating areas. In its opening hour, the store sold four whole fresh salmon and more than 10,000 yuan worth of durians. Its product strategy leans heavily on fresh, seasonal, and ready-to-eat offerings designed for Jinan’s fast-paced urban consumers.
“Compared with traditional supermarkets, these new stores feel more like lifestyle centers — you shop, you eat, you rest. It’s fun and convenient,” said one shopper.
Traditional Supermarkets Busy with “Makeovers”
Established local names are not sitting idle. Jiajiayue has remodeled multiple branches, adding in-house bakeries and open kitchens. By analyzing over one million shopping receipts, it eliminated nearly 40% of duplicate items and introduced 2,000 new products. Each upgraded store reports a 20–30% revenue boost, fueled in part by its private-label line “Yuewei Shangpin.”
RT-Mart is testing a different approach, shifting one location entirely online. Orders placed through the RT-Mart Fresh app promise 30-minute home delivery, cutting costs while keeping pace with consumer demand for instant gratification.
Yinzuo Supermarket has expanded fresh food zones, lowered shelf heights, and introduced new private labels under the “InZone” brand. Its remodeled Qilishan branch saw sales grow 12% in two months and traffic at new outlets soar more than tenfold.
Yet not all legacy players are thriving. Jinan Hualian, a once-dominant local brand, has struggled despite structural changes. According to the China Chain Store & Franchise Association, its 2024 sales dropped 5% year-on-year to 2.81 billion yuan, with store numbers declining 4.5%.
New Entrants and Generational Divides
The competition is further complicated by shifting demographics. Middle-aged and elderly consumers still prioritize value-for-money, favoring neighborhood discount chains like Dashan Supermarket, which thrives on “low price + familiarity.” But younger generations are drawn to premium quality and immersive experiences — a niche targeted by Freshippo, Sam’s Club, and soon, Walmart.
Sam’s Club broke ground in Jinan in late 2024 and is set to open by December 2026. The warehouse club will feature a “one-store, multi-warehouse” model with cloud hubs to ensure one-hour delivery across much of the city.
For chains like Jiajiayue and Dashan, the challenge is clear: price alone may no longer be enough. As one consumer put it, “Community supermarkets are cheap and convenient, but younger people want better brands and fresher experiences.”
Policy Tailwinds: Consumption Loan Subsidies
The retail transformation coincides with new financial policies aimed at boosting spending. Since Sept. 1, Jinan residents have been eligible for “dual interest subsidies” on consumer loans. Individuals can save up to 500 yuan per purchase, with multiple transactions eligible for stacking, while service-sector businesses may receive subsidies on loans of up to 1 million yuan.
“These subsidies reduce the cost of borrowing for both households and businesses, encouraging spending on everything from appliances to tourism,” said Yu Hong, director at the Ministry of Finance’s Financial Department. “It’s about making people more willing to spend — and companies more willing to invest.”
The Road Ahead
Experts say Jinan’s supermarket sector is entering a decisive phase. “The future of traditional supermarkets lies in four dimensions: upgrading experiences, innovating services, integrating digital tools, and leveraging cultural identity,” said Zhang Qing, associate professor at Shandong University of Finance and Economics.
With consumer behavior evolving rapidly and competition heating up, one question remains: who in Jinan’s retail battlefield will win the loyalty of both seniors and Gen Z?