Hypermarkets Embrace New Landscape: Experts Say Competition Shifts from Channel Wars to Lifestyle Scenarios

(CNA, Taipei, July 4) In the past year, Taiwan's hypermarkets and supermarkets have undergone significant changes. From RT-Mart rebranding as Quanlian, Carrefour renaming to Wan Jia Fu, to Japan's LOPIA emerging as a new player and launching its first global upgraded store format, coupled with Costco recently opening its largest store in Taiwan in Kaohsiung, Taiwan's retail market is experiencing a structural transformation. Experts assert that "hypermarkets and supermarkets are shifting from 'channel wars' to 'lifestyle scenario wars,' entering a new round of competition."

One of the biggest changes in the hypermarket sector is brand consolidation. Quanlian acquired RT-Mart and will complete brand integration by 2025, renaming it Quanlian. French group Auchan exited the Taiwanese market. This year, Uni-President Group also recently completed the rebranding of Carrefour, with hypermarkets renamed "Wan Jia Fu" and supermarkets "Le Jia Kang," symbolizing the departure of the French Carrefour brand from Taiwan's retail history.

Currently, the major hypermarket market is primarily operated by domestic players such as Wan Jia Fu, Quanlian, and Ai Mai under the Far Eastern Group. Foreign brands are limited to the membership-based American warehouse club Costco. While foreign brands once drove the development of large hypermarkets, the landscape has now shifted to a new phase dominated by domestic retail groups.

Costco Expands, LOPIA Rises, Store Format Competition Heats Up

Compared to some hypermarket operators reducing their store numbers, Costco continues to expand. The Kaohsiung store, which has been in operation for nearly 30 years, relocated on July 3rd from Zhonghua 5th Road to its new site on Zhike Road in Qianzhen District. This new location is the largest store in Taiwan, with a total floor area of 14,000 ping.

Notably, Japan's LOPIA has emerged as a significant player in Taiwan in recent years, introducing a different competitive model to the market. Furthermore, in April this year, Uni-President Supermarket announced its investment in Taiwan LOPIA, and upon completion of the transaction, it will hold a 51% stake, pending approval from the Fair Trade Commission.

In addition to its regular mall locations, LOPIA will launch its first global upgraded store format, "LOPIA PREMIO," at Kaohsiung's Hanshin Department Store this year. Hanshin Department Store stated that the opening is tentatively scheduled for the third quarter of this year. It will be an upgraded version of the existing store format, designed as a new brand and store type to meet the needs of Hanshin Department Store's high-end customer base.

LOPIA General Manager Mizumoto Jun revealed that the store will be positioned as a luxury department store, with a re-planned product assortment including high-grade fruits, wagyu beef, seafood sushi, prepared foods, and desserts, aiming to provide a different consumer experience from existing store formats.

Expert: Hypermarket Competition Shifts from Channel Wars to Lifestyle Scenario Wars

Zheng Guiyin, an assistant professor at the College of Business, Chinese Culture University, told CNA that in the past, Taiwan's hypermarkets and supermarkets generally had three formats: large hypermarkets, membership-based warehouse clubs, and department store specialty supermarkets. "But this division is changing."

First, the halo of foreign brands is fading, and domestic groups are redefining the hypermarket market. The renaming of Carrefour to Wan Jia Fu signifies that after Uni-President Group took over large hypermarkets, it will leverage its capabilities in food manufacturing, logistics, membership programs, convenience stores, and retail channel integration to regain control of Taiwanese families' refrigerators. "Wan Jia Fu's true opportunity lies in transforming hypermarkets into a part of Uni-President Group's lifestyle service network."

Second, Japanese supermarkets are entering high-end department store scenarios. He stated that LOPIA's rise indicates that Taiwanese consumers have matured in their acceptance of Japanese supermarkets, prepared foods, fresh produce, and Japanese lifestyles. In other words, LOPIA is tapping into the market of "Taiwanese people embracing a Japanese lifestyle."

Therefore, LOPIA is not only opening stores in regular malls but also taking over department store locations that previously belonged to high-end supermarkets. The LOPIA PREMIO introduced at Kaohsiung's Hanshin Department Store signifies that "department store supermarkets are no longer just selling ingredients, but are part of a premium lifestyle."

Zheng Guiyin believes that the new generation of consumers places greater importance on on-site experience, prepared food options, trending products, social sharing, and price perception. "The competition in department store basements in the future will be about who can turn 'grocery shopping' into 'exploring lifestyle.'"

Another development is Costco opening its largest new store in Taiwan in Kaohsiung. He noted that Costco sells a membership system, bulk family purchases, convenient parking, and high repurchase rates. Costco sees not just single-store sales, but the consumption potential of Southern Taiwan families as a weekend destination.

He added that with an increasing elderly population, shrinking family sizes, and changes in urban lifestyles, retail demand is no longer just about "buying the cheapest." Instead, there is a greater emphasis on parking, store flow, prepared foods, health foods, family care, weekend shopping, and one-stop purchasing.

Zheng Guiyin stated that future competition in the hypermarket market will no longer be solely about price and product variety. Taiwan's hypermarket and supermarket market is shifting from channel wars to lifestyle scenario wars. Whoever can grasp consumers' lifestyle scenarios and better understand changes in families, cities, demographics, and lifestyles will have the opportunity to become the protagonist of the next stage of the retail landscape. (Editor: Lin Shu-yuan) 1150704

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