(Reuters) – Alibaba Group Holdings
<9988.HK> said on Monday it will spend $3.6 billion to receive a managing stake in hypermarket operator Solar Artwork Retail Team Ltd <6808.HK>, attaining further more ground in China’s retail sector.
The e-commerce big is hoping to more leverage its electronic presence to assist Sunshine Art’s 481 hypermarkets and a few mid-size supermarkets in China. The shift will come as Alibaba steadily expands its existence in China’s offline retail sector, as growth in regular e-commerce slows.
Alibaba, which now owned 21% of Sunshine Art by way of a device, will raise its stake to close to 72% by the acquisition of a equivalent stake in A-RT Retail Holdings, who owns 51% of Solar Artwork.
“As the COVID-19 pandemic is accelerating the digitalisation of customer life and company operations, this commitment to Sun Artwork serves to bolster our New Retail vision and serve much more individuals with a completely integrated encounter,” Alibaba Chairman and Main Executive Officer Daniel Zhang reported in a assertion.
Alibaba additional that Peter Huang would be appointed chairman of Sunshine Art on top rated of his present part as chief government officer.
Shares of Sun Artwork soared more than 27% by lunchtime on Monday right after Alibaba produced the announcement.
Alibaba has expanded retailers throughout China for Freshippo, a supermarket chain that doubles as an on the internet shipping and delivery service. Alibaba operates 214 Freshippo stores as of its most new earnings report.
It also has worked with mom-and-pop comfort retail outlet owners to present technological innovation and information analytics services.
Alibaba’s e-commerce rivals in China have manufactured comparable forays into brick-and-mortar retail.
Online retailer JD.Com Inc <9618.HK> operates a brick-and-mortar grocery retail store named 7Refreshing.
(Reporting by Nikhil Kurian Nainan in Bengaluru and Josh Horwitz in Shanghai Editing by Stephen Coates)
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