Alibaba Group, Auchan Retail and Ruentex Form New Retail Strategic Alliance
November 19 2017 - 5:51PM
Business Wire
Joining offline and online strengths to
offer a new consumer experience in China
Alibaba Group Holding Limited (NYSE:BABA, “Alibaba”), Auchan
Retail S.A. (“Auchan Retail”) and Ruentex Group (“Ruentex”) today
announced a strategic alliance that brings together their online
and offline expertise to explore new retail opportunities in
China’s food retail sector.
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As part of this strategic alliance, Alibaba Group will invest a
total of HK$22.4 billion (approximately US$2.88 billion) to obtain
an aggregate direct and indirect stake of 36.16% in Sun Art Retail
Group Limited (HK stock code: 6808, “Sun Art”) by acquiring shares
from Ruentex. Auchan Retail is also increasing its stake in Sun
Art. The transaction will give Auchan Retail, Alibaba Group and
Ruentex approximately a 36.18%, 36.16%, and 4.67% economic interest
in Sun Art, respectively. Auchan Retail will continue to
consolidate Sun Art in its financials following the
transaction.
Sun Art is a leading multi-format offline food retailer in
China. As of June 30, 2017, Sun Art operated with a total gross
floor area of approximately 12 million square meters in China. Sun
Art currently operates 446 hypermarkets as large as 17,000 square
meters in 29 provinces, autonomous regions and municipalities
across China under the “RT-Mart” (大�发) and “Auchan” (欧尚) banners.
It also operates superstores and innovative unmanned stores under
the “Auchan Minute” brand.
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. 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.
“Alibaba is excited to join with our new partners to redefine
traditional retail through digital transformation,” said Daniel
Zhang, Chief Executive Officer of Alibaba Group. “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.”
Wilhelm Hubner, Chief Executive Officer of Auchan Retail, said,
“This alliance with Alibaba stems from our shared vision for the
future of commerce in China. 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.”
“In recent years, consumer’ demands have changed tremendously
with the rapid growth of the mobile internet, and Sun Art is also
endeavoring to move from offline to online,” said Peter Huang, Vice
Chairman of Ruentex Group. “Ruentex is delighted to see the win-win
collaboration between Sun Art and Alibaba with high synergies in
online and offline that will meet the needs of consumers for a
better life with better products and services and higher
efficiency.”
Combining the resources of the three companies, the new alliance
will enable Sun Art’s activities to benefit from Alibaba’s digital
ecosystem. It will digitize and introduce new retail solutions at
Sun Art stores, including online and offline integration together
with modern fulfillment and personalized customer experience.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a company that lasts at least 102
years.
About Auchan Retail
Being part of the top 5 of the most internationalized food
retailers, operating in 17 countries, Auchan Retail (€51.7 billion
of 2016 turnover) combines all food retail formats with 3,715
points of sale: hypermarkets, superstores, supermarkets and
convenience stores, alongside online shopping and drive outlets in
certain countries. To build a successful and modern business model,
Auchan Retail ensures that its customers are always a core concern,
through discount prices, the choice and diversity of its offering,
quality of service, tailoring to local markets and factoring in of
multi-channel shopping trends. The 35th largest employer worldwide,
the business has 345,365 employees. In China, Auchan Retail is the
main shareholder of Sun Art Retail Group. www.auchan-retail.com
About Ruentex Group
Ruentex Group’s philosophy of retail business is to sell more
and more high-quality products to more and more consumers at lower
and lower prices, become the most popular and trusted retailer, and
bring the happiness to the consumers.
About Sun Art
Sun Art Retail Group is the leading multi-format offline food
retailer in China. The company has a nationwide footprint
established under two recognized banners, Auchan and RT-Mart, where
nearly 140,000 employees operate in 490 multi-formatted stores,
across 224 cities in 29 provinces, autonomous regions and
municipalities in China. While striving for excellence and to
become the most preferred and trusted world-class retailer, it also
seeks to be an employer that staff can feel proud of.
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Alibaba GroupAPAC:Cathy Yan, +852 9012
5806cathy.yan@alibaba-inc.comAmericas:Brion Tingler, +1
917-528-1992brion.tingler@alibaba-inc.comEMEA:Maja Hauke,
+44 (0) 20 7 3958330maja.hauke@alibaba-inc.comorAuchan
RetailEMEA:Marie Vanoye, +33 320 816
852mvanoye@auchan.comAPAC:SPRGAngela Ng, +852 2864
4855angela.ng@sprg.com.hkorRuentex GroupNelson Hsu, +86 21
26100888nelson@mail.rt-mart.com.cnorSun Art RetailSPRGVeron
Ng, +852 2864 4831veron.ng@sprg.com.hkorAngela Ng, +852 2864
4855angela.ng@sprg.com.hk
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