Freshippo To Pilot ‘1 Store + N Warehouses’ Retail Model

It has recently been confirmed that Freshippo will open stores in Hebei province, marking the first time that the retail giant has simultaneously launched stores in both a provincial capital and a prefecture-level city within the same province. The location has been finalized for the store in Tangshan, a prefecture-level city in Hebei, while the store in provincial capital Shijiazhuang is still in the project initiation stage, with no specific details available yet.

Additionally, reports indicate that Freshippo will pilot a new retail model — dubbed the “1 store + N warehouses” approach — in Tianjin and Tangshan. Under this model, a single retail store is paired with multiple front warehouses. The store acts as the main hub for customer interaction and product display, while the front warehouses, strategically positioned nearby, handle storage and delivery operations.

The new model is designed to separate the front-end store from back-end warehouse functions, thereby increasing order density, reducing delivery costs and enhancing delivery efficiency. Front warehouses, which have relatively low construction and labor costs, are integrated with the store to streamline operations and avoid redundant customer acquisition, allowing resources to be allocated more effectively.

According to a report released by Freshippo in late December 2024, the company opened a total of 72 new stores in 2024, averaging one new store every five days — double the pace of store openings in 2023. Notably, one-third of these new stores were located in second- and third-tier cities, as well as county-level areas.

On March 3 of this year, the retail giant announced plans to further accelerate its expansion during fiscal year 2025, aiming to open nearly 100 new stores and expand into dozens of new cities.

Image: Freshippo

This article was translated from Chinese. Read the original article.