Alibaba announced that it has taken a 36.16% stake in Sun Art Retail Group.
The Group is a Hong-Kong based business operating 446 hypermarkets across 224 cities in mainland China. It is the most prolific operator of hypermarket stores in the country.
With Alibaba’s new stake, the company is the second largest shareholder after purchasing the stake from Ruentex.
Ruentex has kept 4.67% of a share while French Auchan is the biggest stake holder at 36.18%.
This is a big move for the company moving intot he offline market. Alibaba has made a name or itself in e-commerce in the country.
The company’s CEO Daniel Zhang commented, “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.”
“By fully integrating online and physical channels together with our partners, we look forward to delivering an original and delightful shopping experience to Chinese consumers,” he added.
Disclaimer: We have no position in Alibaba Group Holding Ltd. (NYSE: BABA) and have not been compensated for this article.