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Alibaba is focusing on grocery stores ahead of its IPO



The retailer will soon open 12 new Hema-branded stores in major cities nationwide, including Beijing, Guangzhou and Shanghai.
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.

Alibaba - depositphotos.com

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.

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