Online giant Alibaba Group Holding is planning to invest HK$22.4 billion ($2.87 billion) for a major stake in China’s top hypermart operator, Sun Art Retail Group. The move comes as the e-commerce company is trying to capture more of the offline retail market.
In an alliance with Auchan Retail and Ruentex Group, Alibaba will buy the stake from Ruentex, while Auchan Retail will increase its stake. All this is part of Alibaba’s strategy to boost big-data capabilities in the offline retail market with about 85% of sales made.
“Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalized services in the digital economy,” Alibaba Chief Executive Officer Daniel Zhang said.
Under the deal, French retailer Groupe Auchan SA, Chinese Alibaba Group, and Taiwanese conglomerate Ruentex would get 36.18%, 36.16% and 4.67% stakes in Sun Art respectively. Alibaba would replace Ruentex as the second-biggest shareholder.
