China’s Alibaba Group is strengthening its presence in the world of physical commerce ahead of the IPO of its Alibaba Freshippo division. Freshippo is a separate, independent business of Alibaba. In May, the company received approval for an IPO.
In anticipation of such a significant event, Freshippo is opening more stores in China. The retailer will soon open 12 new Hema-branded stores in major cities nationwide, including Beijing, Guangzhou and Shanghai.
The online giant competes with JD.com in this segment. Last week, it was revealed that the company had created a new division centered on the retail grocery chain 7Fresh.
The expansion of Alibaba’s business came as part of a growth strategy, with the Internet giant splitting its business into six separate entities for a possible go-public. Freshippo now operates more than 300 stores in 27 cities in China. The exact timing of the company’s IPO has not yet been determined.
Freshippo, also known as Hema, is a retail brand owned by Alibaba Group, one of the largest e-commerce companies in the world. It is a supermarket chain combining online and offline shopping experiences, primarily in China. Freshippo stores are known for their focus on fresh food and technology-driven shopping.
