Meituan is closing five offline Ella Supermarket stores after debuting the brand just a year ago, as the Chinese mega lifestyle platform seeks to pare losses.

A total of five stores located in the eastern Chinese cities of Wuxi and Changzhou will be shut down on Wednesday. In a statement sent to TechNode, Meituan said that the closures are due to mismanagement, and that its two Beijing stores will continue to operate.

The company is reducing its store portfolio but is sticking to fresh produce as one of its main businesses strategies over the long term. Meituan will concentrate its resources and focus on revenue growth, improving the shopping experience, and operational efficiency in its two remaining stores, said the company.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen