(Yicai) March 6 -- Freshippo is closing six to seven underperforming brick-and-mortar shops in the first half but will open another 70 in other locations over the course of the year, the fresh produce retailer under Chinese e-commerce giant Alibaba Group Holding said on Weibo today in response to online rumors that it is shuttering some outlets.

Freshippo, also known as Hema Fresh, is carrying out regular replacing of its worst-performing stores in the first half, due to the expiration of property leases and sluggish sales, the Hangzhou-based company said. It is seeking properties in other locations that can better meet consumer needs.

Over 360 shops are operating as normal, and this number could exceed 400 with the new ones that it plans to add this year, it said.

Freshippo has closed a number of its stores, according to rumors circulating on social media. Another three Freshippo stores will be shuttered this month, one rumor said, citing employees based in Wuhan, central Hubei province.

Hema Fresh is not the only e-retailer to be shutting outlets. It was reported last month that Dingdong Maicai had closed 38 distribution centers in Guangzhou and Shenzhen.

Dingdong Maicai has temporarily merged or closed a small number of depots in Guangzhou and Shenzhen to increase operating efficiency, the Shanghai-based company told Yicai at the time.

Nearly 90 percent of Dingdong Maicai's services in southern China are unaffected by the closures, it said. The Shenzhen-based firm is developing its business steadily and plans to continue to add and upgrade depots in the area.

Editor: Kim Taylor