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December 30, 2021updated 28 Jul 2022 7:13am

Alibaba’s grocery retail chain to open new stores in China

The new stores will also feature additional space for toys and apparels.

Alibaba’s grocery retail chain Freshippo is reportedly planning to expand its footprint in the Chinese market with the addition of three new membership stores in January next year.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The new retail outlets called Freshippo Business Group-X Wholesale Store (X store), will be opened across the three Chinese cities Shanghai, Suzhou and Nanjing.

Last October, the membership-only X store chain made its debut, and the addition of the three new stores has increased the total number of such outlets in the country to seven.

The new stores, covering an area ranging between 16,000m² to 20,000m² will have nearly 3,000 stock keeping units (SKUs), of which 40% are the company’s products such as Hema MAX, Freshippo ’s private label.

Freshippo vice-president and procurement and merchandising general manager Zhao Jiayu told China Daily: “The proportion of merchandise carrying the ‘Hema MAX’ marquee has surpassed 30% in these new stores, up 10% points from half a year ago.

“We emphasise sourcing locally, which not only satisfies the needs of Chinese customers but also helps merchants and even peasants in remote areas from the supply side.”

The new stores are also said to feature additional space for toys, apparels.

Freshippo public and client communication director Chong Xiaomeng said: “Even in the bulk-buying model, we tend to market and pack products in a way that is more consumer-friendly.

“For instance, unlike our competitors selling cheese in large chunks, we roll out cheese bars, flake-lets or slices that can go with instant noodles and hot pots, making it something that can be simply consumed as a snack.”

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.