Ecommerce giant Alibaba will invest approximately $3.6 billion in the 484-store Sun Art hypermarket chain in a bid to compete in China’s growing online grocery industry. The transaction raises Alibaba’s aggregate direct and indirect stake in Sun Art to approximately 72% and demonstrates its “New Retail” strategy by further integrating online and offline resources in China’s retail sector.
“Alibaba’s strategic investment in Sun Art in 2017 was an important step in our New Retail strategy,” said Daniel Zhang, Chairman and CEO of Alibaba Group in a statement. “Sun Art has achieved impressive results in its digitalization, and pursued promising synergies with businesses across the Alibaba digital economy.”
Currently, all Sun Art physical stores in China have been integrated into Alibaba’s Taoxianda and Tmall Supermarket platforms. They provide one-hour and half-day on-demand delivery through collaboration with other key businesses across the Alibaba ecosystem, including Ele.me and Cainiao. Sun Art operates 481 hypermarkets and three mid-size supermarkets in China, with a focus on strengthening its position through small and offline community stores.
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