Alibaba Spruces Up Retail Portfolio With Home Improvement Chain Investment
E-commerce giant Alibaba Group Holding Ltd. said on Sunday it will pay 5.45 billion yuan ($865 million) for 15% of one of China’s leading traditional home improvement chains, extending its strategy of combining online and offline retailing.
The investment in Beijing Easyhome Furnishing Chain Store Group Co. Ltd “underscores Alibaba’s commitment to furthering the new retail strategy by taking it into new sectors and driving the seamless convergence of online and offline retail experience,” Alibaba said in a statement.
Easyhome operates 223 stores in 29 provinces and autonomous regions across China, and posted sales of over 60 billion yuan in 2017. Alibaba said Easyhome would use the new cash infusion and broader partnership to aid in the chain’s own digital transformation.
“The investment is in addition to the success that Alibaba has already achieved in industries of electronics and home appliance, fast-moving consumer goods and grocery, fashion and department stores, and catering,” Alibaba said in a statement. “Alibaba’s new retail is fast becoming an indispensable component of people’s daily life.”
The move marks the latest purchase of a traditional retailing asset by Alibaba, as it pursues its vision of a future landscape that combines its strength in online shopping with more traditional brick-and-mortar retailing. In one of its most recent such tie-ups, the company last November announced it would purchase 36.2% of traditional hypermarket operator Sun Art Retail Group Ltd. for HK$22.4 billion ($2.86 billion).
Alibaba has also moved aggressively into traditional retail concepts with high-tech touches to improve efficiency and convenience. One of its main initiatives has been an unmanned convenience store concept, and the company is also reportedly building a high-tech shopping mall in its hometown of Hangzhou. Alibaba has also rolled out smaller automated traditional retailing concepts such as vending machines that sell fresh live crabs, a product usually sold in supermarkets and seafood markets.
Contact reporter Yang Ge (firstname.lastname@example.org)
Feb 18 17:00
Feb 18 16:06
Feb 18 13:37
Feb 18 05:43
Feb 18 05:18
Feb 18 05:04
Feb 17 17:15
Feb 17 14:38
Feb 17 13:20
Feb 17 12:20
- 1Coronavirus Latest (Feb. 1 - 15): Cases Surge Past 66,500 as France Reports First Death
- 2Four Deaths in One Family Show Danger of Wuhan’s Home Quarantine Policy
- 3Coronavirus Among Medics More Widespread Than Reported, Research Shows
- 4Even With Massive Funding, Coronavirus Vaccine Isn’t Coming Soon
- 5Coronavirus Sunday Update: Taiwan Reports First Death, Wuhan Virology Institute Denies Rumors
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas