(Yicai) Aug. 7 -- Freshippo, the grocery arm of Alibaba Group Holding, plans to open almost 100 supermarkets in the ongoing fiscal year.

Freshippo will open nearly 100 new stores in over 50 Chinese cities by the end of March next year, with the total number of its retail outlets expected to exceed 500, Chief Executive Officer Yang Xiaolei told Yicai today.

Freshippo had over 420 stores as of March 31. In the fiscal year 2025, which runs from April 2024 to March 2025, the firm achieved profitability for the first time, reporting a gross merchandise volume of more than CNY75 billion (USD10.4 billion).

In addition to online grocery delivery, Freshippo also launched a members-only supermarket business in 2020 to rival US retail giant Sam's Club. However, it started closing its Freshippo X stores in 2023 because of changes in its operating strategy, with the last one expected to shut down on Aug. 31.

Freshippo is now targeting lower-tier markets with a dual approach of normal and small-sized stores, said Bao Yaozhong, chairman of Baum Enterprise Management Consulting, Securities Time reported. Normal stores focus on community fresh groceries, while small ones sell high-frequency, essential goods through a hard-discount model.

Alibaba yesterday rolled out a new membership program that connects the Chinese internet giant's e-commerce, food delivery, and travel platforms, aiming to expand engagement by rewarding users across its ecosystem.

Under the new system, users can earn points and unlock benefits by shopping on Alibaba's Taobao and Tmall, ordering food and goods through Ele.me and Freshippo, booking trips on Fliggy, and using other of its services. For example, all Taobao and Tmall 88VIP members can claim a 90-day Freshippo membership for free.

Editor: Futura Costaglione