Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Alibaba takes $2.9 billion stake in food retailer

Alibaba is China’s dominant player in online commerce, with its Taobao platform estimated to hold more than 90 percent of the consumer-to-consumer market AFP-File

BeijingChina, Nov 20 – Alibaba said on Monday it would take a major stake in one of China’s top food sellers for $2.9 billion as the e-commerce giant expands further into the retail world.

China’s largest e-commerce platform has invested heavily in recent years to connect its online and offline portfolio of businesses, taking stakes in several Chinese grocers, shopping malls and department stores.

Alibaba will buy a 36 percent stake in Sun Art Retail Group from Taiwanese conglomerate Ruentex Group, leaving Alibaba and French firm Auchan Retail with roughly equal stakes in Sun Art’s 446 hypermarkets that sell everything from groceries to clothes.

Sun Art also operates smaller superstores and is building a line of unmanned stores.

Hangzhou-based Alibaba has bet its future on uniting online and offline selling, executing the strategy well before US-based Amazon made its first major purchase of bricks and mortar grocer Whole Foods earlier this year.

“Alibaba is excited to join with our new partners to redefine traditional retail through digital transformation,” chief executive Daniel Zhang said in a statement.

Sun Art is one of Auchan’s major bets on the Chinese market and the chain of stores has been a boon for its business. The Alibaba investment will integrate Sun Art’s bricks and mortar stores with the online selling giant’s platform, the companies said in a press release.

“Bringing together the leaders of in-store retail and of online retail will allow us to serve hundreds of millions of Chinese consumers a fully integrated, world-class shopping experience,” said Wilhelm Hubner, chief executive of Auchan Retail, which will slightly raise its stake in Sun Art as part of the deal.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...