Alibaba Group’s high-tech grocery chain Freshippo has unveiled plans to launch a next-generation distribution center in early 2022, kickstarting a rollout of the innovative hubs across the country.

In a statement, Alibaba said construction is underway at the new 150,000-square-meter facility in Wuhan, central China, with roofing work expected to be completed by the end of this month.

"The distribution center is designed to supercharge Freshippo’s New Retail model, seamlessly blending online and offline shopping. Aside from the typical warehousing, packaging and delivery services, the new facility will come complete with indoor holding facilities for live seafood, cold-storage rooms, food-processing equipment and a centralized kitchen," it said.

Hao Jingbin, who oversees the distribution center’s development for Freshippo noted that integrating supply-chain facilities can greatly enhance efficiency as the company pushes to transform its supply chain to keep up with demands for fresh and high-quality produce.

More distribution centers across China

Alibaba said Freshippo plans to roll out similar distribution centers across China over the next few years, including in Chengdu, Shanghai, Hangzhou, Guangzhou and Xian.

Freshippo has nearly 300 stores in China.

"The upgraded distribution centers will not just provide a boost to our capabilities, they are also a part of our effort to build a possible blueprint for New Retail infrastructures," Alibaba’s Hao Jingbin added.