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Freshippo, the grocery division of a major Chinese tech conglomerate, plans to open nearly 100 new supermarkets during the current fiscal year. By the end of March next year, the company aims to expand its store count to over 500 units across more than 50 cities in China, according to its CEO.
As of March 31, the company operated over 420 stores. During its most recent fiscal year (April 2024 to March 2025), it achieved profitability for the first time, with a gross merchandise volume surpassing 75 billion yuan (approximately $10.4 billion).
In addition to its online grocery delivery service, the company launched a members-only supermarket model in 2020 to compete with U.S. retailer Sam’s Club. However, it began closing its Freshippo X stores in 2023 as part of a strategic shift, with the final location expected to shut down on August 31.
The company is now focusing on lower-tier markets with a dual-store strategy: standard stores that emphasize fresh produce and groceries for the community, and smaller outlets that sell essential, high-turnover items through a discount model, according to Bao Yaozhong, chairman of Baum Enterprise Management Consulting.
Recently, the tech giant introduced a new membership program that integrates its e-commerce, food delivery, and travel platforms. This initiative aims to deepen customer engagement by offering rewards across its entire ecosystem.
With this program, users can earn points and unlock benefits by shopping on popular online marketplaces, ordering food and groceries through delivery apps, booking trips, and utilizing various other services. For instance, all members of the company’s premium online shopping loyalty program can receive a free 90-day membership to its grocery chain.
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