Liberty Times Net reported on December 6 that 1.9 million retail businesses closed down in 2022 in China due to the nation’s zero-COVID measures.
Among retailing giants, Suning and Gome, known as the “two brothers” of the home appliance retailers, have both declared bankruptcy recently.
Gome closed 370 stores since it owed millions of dollars to its suppliers and could not repay the debt. The giant has incurred a net loss for five consecutive years, and its financial report shows this year’s debt of 58.5 billion yuan ($8.4 billion).
Suning has experienced the same plight. The group’s diversified expansion strategy dragged it down, making the main business of home appliance retail fall into the quagmire.
Another top retailer is Carrefour which closed more than 50 stores in China in 3 quarters. The retailer also withdrew its operations from the Henan market, leaving only 151 supermarkets in China.
In addition to the retailing industry, the turbulent wave of closures has swept across other aspects of the business.
As of December 1, as many as 496,000 restaurants shut down their operations, and twenty thousand child-related companies stopped their business.In 2019, the total number of cancellations of businesses in China was about 2,8 million. Three types of businesses above suffered cancellations exceeding 85% of that in the whole industry before the pandemic.