Freshippo CEO Yan Xiaolei announced in an internal letter today that the Alibaba-owned grocery chain has achieved double-digit growth based on Dear Utol (2025): Aswang Episode 30nine consecutive months of overall profitability, with customer numbers increasing by over 50%. This marks the first time that Yan has made a disclosure regarding Freshippo’s profitability since she assumed the role of CEO in March 2024.
Freshippo’s operations have shown consistent improvement since achieving full profitability in Q4 2022 and Q1 2023. However, in October 2023, the retailer unexpectedly introduced a 20% discount across its entire offline product range, surpassing the 12% discount previously offered exclusively to members under its RMB 258 annual membership program. This move sparked discontent among existing members, who felt their paid benefits were devalued by the broader discount policy. Under Yan’s adjustments, the company turned a profit during the off-season for the first time between March and June 2024, entering a phase of sustained profitability.
Freshippo is a subsidiary of Alibaba Group, specializing in fresh food retail with both online and physical stores. [Guandian, in Chinese]
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