Freshippo Plans To Open Nearly 100 New Stores in FY 2025

Freshippo recently revealed its strategic plan for fiscal year 2025, which includes opening nearly 100 new stores and expanding into dozens of new cities.

In an internal letter at the end of 2024, Yan Xiaolei, the company’s CEO, disclosed that Freshippo had achieved continuous overall profitability over the past nine months while sustaining double-digit growth, with customer numbers rising by more than 50%. She also noted that nearly half of Freshippo stores nationwide had been upgraded in 2024. The company is focused on two core business models: Freshippo’s standard stores, which target middle-to-high-end consumers, and Freshippo NB stores, which operate as discount outlets.

According to a report released by the company in late December 2024, Freshippo opened 72 new stores over the course of the year — averaging one every five days — and expanded into 21 new cities. This represented the highest number of store openings in the past five years. One-third of the new stores were located in second- and third-tier cities as well as county-level markets, which have recently become key investment areas for the company. By the end of 2024, Freshippo operated nearly 430 stores in 50 cities nationwide.

In fiscal year 2024, Freshippo’s total gross merchandise value surpassed 59 billion Chinese yuan ($8.15 billion), an increase from the 55 billion yuan ($7.60 billion) registered in the previous year. Online transactions contributed more than 63% of this total, while offline gross merchandise value saw a 2% increase. Notably, the majority of Freshippo’s self-managed stores that had been in operation for over a year achieved positive cash flow during the fiscal year.

During a fiscal year 2025 meeting of Alibaba, Freshippo’s parent company, executives highlighted Freshippo’s strong growth, steady expansion and impressive profitability, noting that the company had successfully demonstrated the effectiveness of its online/offline integrated retail strategy. As a result, Alibaba reportedly has no plans to sell Freshippo at this time.

Image: Freshippo

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