JD.com Inc. aims to create an independent unit by merging its 7Fresh supermarket chain with other online services, establishing a retailer of fresh food and groceries that serves millions nationwide.
(Bloomberg) — JD.com Inc. aims to create an independent unit by merging its 7Fresh supermarket chain with other online services, establishing a retailer of fresh food and groceries that serves millions nationwide.
China’s No. 2 e-commerce company plans to set up what it called an “Innovative Retail” operation that includes 7Fresh supermarkets, group-buying platform Pinpin as well as on-demand services, a person familiar with the matter said. Yan Xiaobing, the former head of JD.com’s international business, will lead the unit effective Monday and report directly to group CEO Sandy Xu, the person said, asking to remain unidentified because the restructuring hasn’t been publicly announced.
JD last week declared it aims to create seven listed firms with market values of at least $14 billion apiece, outlining aggressive targets spanning two decades as it wrapped its signature 2023 sales gala with another record haul.
Its new business or division will resemble Alibaba Group Holding Ltd.’s Freshippo unit, known in Chinese as Hema, which is in the process of raising funds and potentially listing separately. Alibaba is working with banks including China International Capital Corp. and Morgan Stanley to help prepare for the first-time share sale of the unit. It will soon apply to the Hong Kong exchange for approval to spin off the unit, the Hong Kong Economic Times reported Monday.
It’s unclear however if JD will go that route, the person said. JD.com representatives declined to comment on the news, which was first reported in part by a local media outlet.
Like Freshippo, 7Fresh opened its first store in Beijing in 2017 and is part of JD’s broader effort to expand its footprint and services into physical retail, to complement its online platform.
Larger rival Alibaba this year announced a historic six-way split of its empire, appeasing investors hungry for value as well as a government that cracked down on alleged monopolies and what it called the “reckless expansion” of the tech industry. Earlier this year, JD units Jingdong Property Inc. and Jingdong Industrials Inc. submitted listing applications to the Hong Kong Stock Exchange.
Read more: Alibaba’s Grocery Arm Is Said to Gear Up for Hong Kong IPO
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.