Alibaba (BABA) is moving from clicks to bricks. The e-commerce giant is set to invest $4.6 billion into the Chinese electronics retailer Suning, giving Alibaba a 19.99 percent stake in the company. The deal will provide Alibaba with a bricks and mortar network of distribution centers and delivery stations to add to its Cainiao logistics branch. Suning will open an online flagship store on the Alibaba platform and has also committed to buying a 1.1% stake in the online retailer for around $2.3B, according to the Wall Street Journal. Alibaba CEO Daniel Zhang told the press in an announcement, ‘we are seeing the integration of e-commerce with traditional commerce where consumers are able to enjoy a more engaged, omni-channel and seamless shopping experience.’ Alibaba shares have dropped around 24 percent this year despite its increasingly expanding revenues. The online retailer will report first quarter earnings on Wednesday.
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