Freshippo to set up distribution centre in Wuhan

The facility will come with indoor holding facilities and food processing equipment.

Alibaba’s high-tech grocery chain, Freshippo, is planning to launch a distribution centre in Wuhan in early 2022, kickstarting a rollout of the innovative hubs across the country, the company announced in a press release.

Construction is underway at the new 150,000-sq. m. facility, with roofing work expected to be completed by the end of this month. The distribution centre is designed to supercharge Freshippo’s new retail model that blends online and offline shopping.

Aside from warehousing, packaging and delivery services, the new facility will come complete with indoor holding facilities for live seafood, cold-storage rooms, food-processing equipment, and a centralized kitchen.

“Integrating supply-chain facilities can greatly enhance efficiency,” said Hao Jingbin, who oversees the distribution centre’s development. The distribution centres will also help drive Freshippo’s rollout of product offerings, including “ready to cook, ready to heat, ready to eat”.

Freshippo plans to roll out similar distribution centres across China over the next few years, including in Chengdu, Shanghai, Hangzhou, Guangzhou, and Xian.

The grocery chain’s partners amongst retailers and suppliers will also be able to use the facilities, including the young, emerging brands that the supermarket has been incubating via its “Freshippo Xccelerator” initiative.