Alibaba's Grocery Brand Hema Breaks Even Thanks To China's Covid Lockdowns - Alibaba Gr Holding (NYSE:BABA)

Alibaba Group Holding Limited BABA supermarket chain Freshippo-owned grocery brand Hema Xiansheng broke even last year in China as Covid lockdowns boosted online sales of fresh produce, including vegetables, seafood, and meat.
Sales of fresh foods at the chain, known in Chinese as Hema, were profitable after seven years of development, SCMP reports citing a letter to staff by Freshippo's CEO Hou Yi.
The break-even reflected that Alibaba's "new retailing is finally bearing fruit" after years of investments, putting Freshippo on track to serve 1 billion customers with an estimated sales value of 1 trillion yuan ($145 billion) over the next decade, Hou said.
Also Read: Tim Hortons's China Coffee Operator Bonds With Alibaba To Tap Country's Beverage Market
Alibaba created Freshippo to tap the supply chain prowess of Alibaba's e-commerce platforms, Taobao and Tmall.
China's fiercely competitive retail industry boasts internet-powered retailers like Meituan's MPNGF Maicai unit and Dingdong Maicai, contending to deliver fresh produce to consumers.
Freshippo will continue to source products from around the world to win customers, wrote Hou, who led a tour to Europe last month to search for boutique beers, drinking water, and chocolates.
Freshippo closed dozens of shops under the Hema Neighbourhood Business last year within months of opening them.
The agility to adapt helped Freshippo generate healthy growth in its same-store sales and pared its losses, which "benefited" Alibaba's earnings in the September quarter.
Price Action: BABA shares traded higher by 8.25% at $99.62 on the last check Wednesday.

Market News and Data brought to you by Benzinga APIs