Online retail business giant Chinese company Alibaba is taking its steps on the way of having a share in the bricks and mortar retail sector on the country. It has been taking efforts in the same directions from last couple of years now and has invested over $9.3 bn in different retail stores.
Recently Alibaba bought 36% stake in country’s biggest hypermarket firm named Sun Art. This stake is worth $2.9bn through which Alibaba will be having direct and indirect sharing in the stocks on Sun Art.
Sun Art Retail holds 14.6% market share considering its retail sale value as of 31St December 2016. It runs 400 retail stores across the country. This purchase made by Alibaba shows its interest in spreading its legs in the offline retail business too. Taking stakes into offline retail stores in this way saves Alibaba from building any physical structure.
In this year, Amazon, the rival of Alibaba has taken a similar step too. Amazon has given around $14 bn to have stakes into Whole Foods retail chain in the U.S.