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| Alibaba spends $ 3.6 billion to take control of Sun Art |
The Alibaba Group has announced that it will spend approximately $ 3.6 billion to acquire a controlling stake in Sun Art, a supermarket and supermarket in China.
Upon completion of the deal, Alibaba Group will own 72% of the shares in Sun Art.
Coronavirus lockdown has increased the online demand for food in China. Despite the lock being lifted, many people continue to shop online.
The Alibaba Group doubled its actual stake in Sun Art, listed on the Hong Kong Stock Exchange, to 72% through the acquisition of 70.9% of the shares (A-RT Retail Holdings) (51% of Sun Art owns).
A-RT Retail Holdings is controlled by the French sales company Auchan and will be included in the financial statements by the Alibaba Group (Sun Art) upon completion of the deal.
The Alibaba Group announced its intention to acquire the remaining stock of Sun Art for $ 2 billion.
Sun Art entered into a strategic alliance with Alibaba Group in 2017 to digitize its subsidiaries.
As part of its new retail strategy, Alibaba Group first invested in (Sun Art) in 2017 and spent approximately $ 2.88 billion to acquire a 36.16% stake in the chain.
The new retail strategy aims to blur the line between online and offline retail through a series of steps such as: b. Convert physical stores into online ordering points and integrate retail chains. Purchasing and the ability of buyers to use the same digital payment methods in physical stores. .
All 484 Sun Art physical retail locations in China are integrated into Alibaba Group's Taoxianda and Tmall grocery store platforms, as well as the Ele.me food delivery app and events app. Logistics (newbie).
For customers, this means faster delivery and more options, while the Alibaba Group has more data sources to use to improve its supply chain and business processes.
Other e-commerce companies have used similar approaches to integrate online and offline shopping, with the major competitor (JD) having similar alliances with Walmart and Yonghui supermarket groups.
In 2019, retail sales in China in the supermarket and hypermarket industries reached 4.7 trillion yuan, nearly half of food sales.