Alibaba extends bricks-and mortar retail push with Bailian deal (updated)

Lianhua Supermarket Holdings Co

20/02/2017 04:10

* Follows stake taken in Suning Commerce, plans to control 
Intime 
    * Shares in Bailian group firms surge on tie-up 
    * Bailian to integrate Alibaba payments, logistics 
technology 
 
 (Adds details of deal, share reaction) 
    By Cate Cadell 
    SHANGHAI, Feb 20 (Reuters) - Chinese tech giant Alibaba 
Group Holding Ltd  BABA.N  has formed a strategic partnership 
with retail conglomerate Bailian Group, extending a push into 
bricks-and-mortar retail as online growth slows. 
    The move comes on the heels of a recent purchase of a stake 
in retailer Suning Commerce Group Co Ltd  002024.SZ  as well as 
plans to take a controlling stake in Intime Retail Group Co Ltd 
 1833.HK  and privatise it. 
    There are currently no plans for financial investment, an 
Alibaba spokesman said. 
    Shanghai-based Bailian Group is one of China's largest 
retailers by sales, operating 4,700 outlets in 200 cities 
including supermarkets, convenience stores and pharmacies. 
Alibaba has an active user base of around 500 million. 
    Shares in Bailian Group's subsidiaries surged on Monday, 
with Shanghai Bailian Group Co Ltd  600827.SS  climbing by the 
10 percent daily limit, Lianhua Supermarket Holdings Co Ltd 
 0980.HK  jumping close to 10 percent and Shanghai Material 
Trading Co Ltd  600822.SS  up 5 percent. 
    Bailian and Alibaba will initially cooperate on supply chain 
technology using Alibaba's big data capabilities as well as 
integrating Alipay payments with Bailian Group's existing 
membership program.  
     
     
     
 
 (Reporting by Cate Cadell and Adam Jourdan; Editing by Edwina 
Gibbs) 
 ((adam.jourdan@thomsonreuters.com; +86 21 6104 1778; Reuters 
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) 
 
Keywords: ALIBABA BAILIAN/