Alibaba Group Holding Ltd. has announced plans to acquire a 15 percent stake in Beijing Easyhome Furnishing Chain Store Group Co., investing about 5.45 billion yuan ($865 million).
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The e-commerce giant said the deal aims to accelerate the "new retail" strategy, combining its digital expertise with physical retail. It plans to support the digital transformation of Easyhome's 223 stores through its cloud and logistics platforms.
The investment builds on founder Jack Ma's expansion into brick-and-mortar businesses, a move that has already disrupted supermarkets and department stores by blending online and offline retail.
Earlier this month, Alibaba reported stronger-than-expected revenues and raised its growth forecast. However, profit margins were squeezed by spending on traditional retail assets and digital media, leading to a fall in its share price.
Alongside the Easyhome deal, the company confirmed plans to acquire a 33 percent stake in Chinese payments provider Ant Financial, further extending its influence across retail and financial services.
The latest move underlines Alibaba's determination to reshape consumer spending in China by merging technology, logistics and physical retail into a unified shopping experience.
Source: www.businessamlive.com
