Alibaba Pursuing Walmart Stores on its Home Turf

Alibaba Group Holding Ltd. is investing $2.9 billion in China’s largest “hyper-market” or superstore company, Sun Art Retail Group, in a move there against Walmart and its partnership with Alibaba rival Sun Art owns 400 hypermarkets under the Auchan and RT-Mart brands.

To date the Chinese ecommerce giant has spent billions in China purchasing grocery chains, shopping malls and even department stores as it pursues a more aggressive clicks-to-bricks strategy in an effort to transform retail.

As part of the deal, French-based Auchan Retail SA will raise its stake in Sun Art and form a partnership with Alibaba, going after the food retail sector in China and up against Walmart and digital partner The $2.9 billion investment from Alibaba gives it a 36% stake in Sun Art.

In February, Walmart increased its stake in to a 12.1% share, and participated in its 8.8 shopping holiday in August, as it looks to expand its position in the massive Chinese market. It’s not clear what the volume of sales was for the first-ever 8.8 festival, but of course it’s dwarfed by Alibaba’s Singles Day which netted over $25 billion in its ninth year.

According to a report in Bloomberg, Alibaba is seeking to leverage its technology to allow physical stores to better manage inventory and customer data, as are Walmart and, marrying physical and digital to enable delivery in major markets.

Unlike Amazon, which paid a premium when it acquired Whole Foods for $13.7 billion this summer, Alibaba picked up its stake on the cheap, a 24% discount off Sun Art’s most recent valuation.

You can read the entire account here.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.

Leave a Reply

Your email address will not be published. Required fields are marked *