Reports: JD.com to Spin Off Grocery Unit Centered on 7Fresh Supermarket Chain

JD.com reportedly plans to combine its 7Fresh supermarket chain with other online services, creating an independent company selling fresh food and groceries to millions of people throughout China, according to Bloomberg and other media outlets.

China’s second-largest ecommerce company after Alibaba is planning an “Innovative Retail” operation that will include the 7Fresh supermarkets, the group buying platform Pinpin and other on-demand services, according to a person familiar with the matter. Yan Xiaobing, formerly head of JD.com’s international business, will lead the unit, reporting directly to group CEO Sandy Xu.

Earlier in June, JD.com revealed long-term plans to establish three enterprises with more than RMB 1 trillion in revenue ($1.4 billion USD) and RMB 70 million ($9.8 million USD) in net profits during the next two decades.