Alibaba invests $2.9B in Chinese hypermarket operator Sun Art

China's biggest e-commerce giant Alibaba announced that it is investing HK$22.4 billion(around $2.88 billion) to acquire 36.16 percent stake in Sun Art Retail Group Ltd, a Hong Kong-listed business that operates 446 hypermarkets across 224 cities in mainland China. The Information was the first to report the investment.

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

“The alliance reflects Alibaba’s ‘New Retail’ vision to leverage its internet-based approach and new technology while working closely with retailer partners to provide a seamless online and offline experience to consumers in China,” the companies said in a joint statement. "It also aligns with Auchan Retail’s Vision 2025 “Auchan changes lives”. Building on the strengths of the three partners, the alliance aims to introduce a new shopping experience to China’s 1.3 billion consumers."

Wilhelm Hubner, Chief Executive Officer of Auchan Retail, said that "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.”

The focus of this deal is to bridge the gap between the online and offline commerce, both for the user and retailer. "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," said Alibaba CEO Daniel Zhang.