×
287
Fashion Jobs
ADIDAS
Senior Manager HR Data
Permanent · CHENNAI
ADIDAS
Profit Protection Specialist
Permanent · GURUGRAM
ADIDAS
Senior Specialist - Finance Operations fp&a
Permanent · CHENNAI
EC COUNCIL
Channel Sales Manager (International Market)
Permanent · Mumbai
CENTURYPLY
Area Sales Manager - Indore
Permanent · Indore
2COMS
District Manager Bangalore
Permanent · Bengaluru
PREMIER CONSULTANTS
Area Sales Manager- Corporate Salary- Mnc Bank
Permanent · Bengaluru
HR INNOVATION GROUP
Production Manager-Machine Shop, Khed Shivapur ,Bus Facility Swarget
Permanent · Pune
CENTURYPLY
Area Sales Manager - Pune
Permanent · Pune
HR CENTRAL
Hiring - Sales Manager- Real Estate Sales-Mumbai
Permanent · Mumbai
GIST MANAGEMENT SOLUTIONS
Area Sales Manager (Mining) For a Construction Equipment CO., Raipur
Permanent · Raipur
COMPLETE RESOURCES
Opening For Area Sales Manager-Cochin,Angamaly,Ernakulum Loc
Permanent · Ernakulam
ADITYA BIRLA FINANCE
Area Sales Manager - Home Loan / Lap - Direct & Dsa - Kolkata
Permanent · Bengaluru
CENTURYPLY
Area Sales Manager - Ghaziabad
Permanent · Ghaziabad
MV SHOES
Wanted Area Sales Manager
Permanent · Hosur
VRB CONSUMER PRODUCTS
Job Opening as Asst Manager Production - Keshwana
Permanent · Keshwana
ADIDAS
Senior Manager - Company Secretary -Aimpl
Permanent · GURUGRAM
L'OREAL GROUP
Product Manager- Kiehl's, Luxury
Permanent · Mumbai
L'OREAL GROUP
Senior Key Account Manager - Ecommerce, Ppd
Permanent · Mumbai
PROPELLANT CONSULTANTS
Area Sales Manager (Biscuit Division)- Vijayawada
Permanent · Vijayawada
G. PULLA REDDY FOODS
Production Manager (Namkeens)
Permanent · Hyderabad
PROPELLANT CONSULTANTS
Area Sales Manager (Biscuit Division)- Hyderabad
Permanent · Hyderabad
By
Reuters
Published
Nov 20, 2017
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Alibaba goes offline with $2.9 billion stake in China's top hypermart

By
Reuters
Published
Nov 20, 2017

Internet giant Alibaba Group Holding Ltd said on Monday it would invest HK$22.4 billion ($2.87 billion) for a major stake in China’s top hypermart operator, Sun Art Retail Group Ltd, part of a wider push into offline retail.

As part of an alliance with Auchan Retail S.A. and Ruentex Group, Alibaba would buy the stake from Ruentex while Auchan Retail would boost its stake, the three companies said in a joint statement.


FILE PHOTO: An employee waits for customers at Sun Art Retail Group's Auchan hypermarket store in Beijing, China, November 9, 2015. REUTERS/Kim Kyung-Hoon/File Photo


The alliance would target opportunities in China’s $500 billion food retail sector, as Alibaba races to build big-data capabilities in the offline retail market where roughly 85 percent of sales are 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 in the statement.

Shares of Hong Kong-listed Sun Art, which were suspended on Nov. 13, resumed on Monday and were down 5.3 percent in morning trade, while the benchmark index .HSI was flat.

The deal would give French retailer Groupe Auchan SA, China’s Alibaba Group and Taiwanese conglomerate Ruentex 36.18 percent, 36.16 percent and 4.67 percent stakes respectively in Sun Art. Alibaba would replace Ruentex as the second-largest shareholder.

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.

Alibaba has invested upwards of $9.3 billion in brick-and-mortar stores since 2015. It has launched many un-staffed concept shops in the past year, including grocery and coffee stores.

The $474 billion firm is taking more risks to secure offline, rural and overseas buyers as China’s urban e-commerce market shows signs of saturating, including purchasing extensive infrastructure which it had previously avoided.

“They’re getting into a territory that’s not their core strength ... for example securing a property, the licenses to sell certain products, paying tax, more labor and so on,” said Weiwen Han, managing partner for Greater China at Bain & Company.

“On one hand they really need to do it, but on the other hand they are facing a lot of challenges that they have never experienced before.”

Sun Art is China’s grocery store leader with about 8.2 percent of the market, according to data from Kantar Worldpanel.

It operates about 450 hypermarkets across China under the RT-Mart and Auchan banners. It also operates unmanned stores under the Auchan Minute brand.

It has been slow to go online, with its platform Feiniu lagging bigger players like China Resources and Wal-Mart Stores Inc.

In a separate statement, Sun Art said Alibaba’s Taobao China Holding Ltd would make a general offer for the company at HK$6.50 apiece.
 

© Thomson Reuters 2023 All rights reserved.

Tags :
Business