Alibaba's (HKG:9988) grocery business Freshippo will close down its warehouse-style, member-only X Member stores, Caixin Global reported Wednesday.

Freshippo's last remaining X Member store in Pudong, Shanghai, will shut its doors on Aug. 31, Caixin said.

The move concludes a four-year trial for its membership-based, wholesale operations, which have proven difficult to maintain as Chinese consumers have been wary about membership fees, among other concerns, the report said.

The closure will help Freshippo focus on its core Freshippo Fresh supermarket and Neighbor Business discount store operations, Caixin said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)