Alibaba Group Holding Ltd. appointed a new head of its grocery arm Freshippo in the latest step of a wide-ranging restructuring.
Chief Financial Officer Yan Xiaolei will replace founder Hou Yi as chief executive officer of Freshippo, according to a person familiar with the matter. Hou will retire but serve as a senior adviser to the company, the person said, asking not to be named discussing private plans.
The decision, first reported by the Late Post, is the latest in a series of changes at Alibaba after missteps and regulatory scrutiny eroded its position against rivals like PDD Holdings Inc. and ByteDance Ltd. Once the most valuable company in China, Alibaba has sought to claw its way back to growth, initially with a plan to split into six parts. That effort has hit major bumps, including the abrupt departure of former CEO Daniel Zhang and the delay of a Hong Kong initial public offering for Freshippo due to weak market sentiment.
To revive growth, the company has been promoting a plethora of young executives to lead different business lines, across its key cloud computing division and its core domestic commerce business, in recent months.
The company is also exploring ways to unload assets and dial back Zhang’s years-long “new retail” ambition. Chairman Joe Tsai said in last month’s earnings call that physical retail operations were not Alibaba’s “core focus.” “It will make sense for us to exit these businesses,” Tsai told analysts on a conference call.
Launched in 2016, Freshippo operates more than 360 stores across China and the company plans to open 70 more locations in 2024.
(Bloomberg)
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