Alibaba takes $2.9bn stake in China's Sun Art Retail Group

By Laura Mullan
E-commerce giant Alibaba has announced that it is to buy a 36% stake in China’s largest hypermarket operator, Sun Art Retail Group, as the company tri...

E-commerce giant Alibaba has announced that it is to buy a 36% stake in China’s largest hypermarket operator, Sun Art Retail Group, as the company tries to push further into the bricks-and-mortar retailing market.

The $2.9bn deal will see Alibaba gain both direct and indirect holdings in Sun Art, which operates around 400 hypermarkets under the Auchan and RT-Mart banners.

SEE ALSO:

In a move similar to Amazon’s $13.4bn acquisition of Whole Foods, the deal will allow Alibaba to integrate online and offline shopping without having to build its own physical stores.

It will also allow Alibaba to build big-data capabilities in the offline retail market where about 85% of sales are made. 

"Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalised services in the digital economy," said Alibaba CEO Daniel Zhang.

As part of the deal, Auchan Retail SA will also boost its stake in the company and will form an alliance with the internet giant to tackle China’s US$500bn food retail sector, where online companies have struggled to gain a market share.

Since 2015, Alibaba has been invested more than $9bn in brick-and-mortar stores. 

This deal will pit Alibaba against big players like China Resources and Wal-Mart Stores in the competitive retail market. 

Share

Featured Articles

Livestock data management platform Breedr raises £12mn

Breedr helps farmers improve their livestock productivity & sustainability. Investbridge Capital led a £12mn funding round to build better farm trading

Coca-Cola, Diginex & Reckitt tech to support supply chains

Respect for human rights is critical to good business, says Coca-Cola’s Paul Lalli, as the company joins diginexLUMEN to catch supply chain forced labour

Luxury food manufacturer Venchi on sustainable packaging

Cècile Osti, of luxury chocolate manufacturer Venchi, on Easter 2022, Sorrento lemons, sustainable packaging, natural ingredients & the pleasure of food

How has the pandemic affected sales at General Mills?

Food

Morrisons partners with Nestle in sustainability scheme

Retail

PepsiCo Launches pep+ a Strategic End-to-End Transformation

Drink