Technology-powered grocery store chain Freshippo slashed prices on over 5,000 items as part of a supply chain overhaul, the company announced on Oct. 13.
Items included in the discount bonanza range from dairy products and instant meals to toiletries and frozen meat.
Discounts are only available for in-person shoppers at present but will be introduced to Freshippo’s online stores in time, according to the company.
“We go around the world to find the best products and at the same time get the most competitive prices,” Freshippo CEO Hou Yi noted in a statement.
This development reflects the company’s investment in developing vertical supply chains to avoid passing costs onto consumers.
To this end, Freshippo has partnered with the first bakery in China that covers the full production process end-to-end, from wheat processing to supplying finished products.
It also recently invested in a smart frozen noodles factory in Jiangsu province that streamlines noodle production. The end products – ready-to-eat noodle dishes – will be sold at Freshippo stores at reasonable prices.
“For the same products, our prices are only 50-70% of those at other boutique supermarkets,” said Hou.
Going forward, the company intends to integrate vertical supply chains into its fresh product and finished product departments, encompassing produce, meat, dairy, instant meals and more.
Freshippo is on a China-wide growth spurt.
In September, it averaged one store opening each day, including its first Premier store which offers consumers a high-end grocery experience featuring upmarket products sourced worldwide.
Freshippo also cut the ribbon on 16 Freshippo “Xiansheng” Supermarkets, whose name means “fresh food” in Mandarin and feature in-store or online shopping options.