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US Retail Giants Reached A Partnership With Alibaba To Fully Compete With Wal-Mart
- Oct 02, 2018 -

According to foreign media reports, Kroger, the second largest retail group in the United States, has already entered into a cooperative relationship with Alibaba Group to sell nuts and dietary supplements in China. The report pointed out that as the leading online retail market gradually evolved into a fierce global competition, the US supermarket chain also went out of the United States for the first time in history.

Alibaba spokesman told Reuters that Kroger will sell products such as Simple Truth in Tmall International's virtual storefront to meet the growing demand of Chinese consumers for high-quality, organic food.

Kroger, the largest US supermarket operator, had sales of $123 billion in 2017. After the news of cooperation with Alibaba was released, Kroger's share price rose 2.35% to close at 30.45 USD.

It should be said that Kroger's cooperation with Alibaba will help it add chips to the competition with American retailer Wal-Mart. On the other hand, Wal-Mart chose to cooperate with Chinese partner Jingdong to fight against Alibaba.

“Electronics can allow Kroger to scale quickly and reach new customers and markets that are not accessible to physical stores, and we will start from China.” Kaelgo Chief Digital Officer Yael Cosset ) said in a statement.

Kroger has been established 135 years ago. Before it announced its cooperation with Alibaba, its rival Amazon has aggressively entered the US market with a value of 800 billion US dollars through the acquisition of the Whole Foods Supermarket and other actions. Moreover, this is the biggest strategic change that Kroger has launched in the past two decades.

Prior to this, Kroger reached an exclusive agreement with British online retailer Ocado to help Kroger build a fully automated warehouse to prepare the goods and complete the delivery order. At the same time, Kroger also launched the online shopping service Kroger Ship, which will directly deliver the package from the distribution center to the customer.

Kroger said that the Simple Truth brand of natural organic products will be launched in China on Wednesday. The initial products will include almonds and multivitamins. Last year, the product line had total sales of $2 billion.

At the same time, in order to counter the Alibaba's dominant position in the Chinese retail industry, Wal-Mart also strengthened its alliance with JD. According to a survey by market research firm IGD, the share of the Wal-Mart e-commerce market is expected to double in 2020, reaching around 6.6%.

At present, Jingdong, China's second largest e-commerce retailer, has become an online shopping platform for many Wal-Mart stores in China, while the latter holds a 12% stake in JD.

Earlier this year, in order to compete with Alibaba's box horse fresh. Wal-Mart also teamed up with Jingdong to open a small high-tech supermarket, and Jingdong was responsible for completing the cargo delivery service.

It is worth mentioning that in order to curb Alibaba's rapid expansion of its retail network, Wal-Mart and JD.com recently added an additional US$500 million to China's online grocery distribution company Dada-Jingdong, hoping to invest in physical stores and online. Combine with the offline communication experience to attract more consumers.