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By
Reuters API
Published
Feb 12, 2018
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Alibaba broadens offline reach with $865 million Easyhome stake

By
Reuters API
Published
Feb 12, 2018

Alibaba Group Holding will pay about 5.45 billion yuan (625.62 million pounds) for a 15 percent stake in China's Easyhome, a home improvement chain, as the internet giant expands its investments in offline and retail businesses.

Reuters


The investment underscores the company's retail strategy, aimed at leveraging offline and online activities, Alibaba said in a statement.

Easyhome, which started operations in 1999, is China's second-biggest home improvement supplies and furniture chain operator, the statement said. The Beijing-based company reported more than 60 billion yuan in sales last year.

Alibaba has been making sizeable investments in the country's retail sector since 2015, when it took a 20 percent stake in local electronics retailer Suning.com Co for $4.6 billion.

In November, Alibaba agreed to take a $2.9 billion stake in China's top hypermarket operator, Sun Art Retail Group Ltd.

"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," Alibaba Chief Executive Officer Daniel Zhang said at the time.

Last year, Alibaba also led the $2.6 billion privatisation of Intime Retail Group Co as part of its move into bricks and mortar activities.
 

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