Alibaba Expanding ‘New Retail’ With Plans to Open 2000 Hema Supermarkets
Alibaba Group has announced plans to merge online and offline shopping, in China over next three to five years with the opening of 2000 branches of its Hema supermarket.
Hema opened its first location last year and is projected to have 22 stores by the end of this year in locations such as Beijing, Guiyang, Hangzhou, Shanghai and Shenzhen.
The concept is part of Alibaba’s “new retail” strategy allowing consumers to shop, order groceries for home delivery or eat in-store. Purchases can be made through the Hema mobile app, which is linked to Alipay.
“Hema leverages data and smart logistics technology to seamlessly integrate online-offline systems, built to provide the unparalleled service of fresh food deliveries in 30 minutes,” said Alibaba Group CEO Daniel Zhang
The business model combines supermarket, restaurant and e-commerce.
According to Alibaba roughly half of sales at Hema stores are made online with consumers within a 3km radius of a store offered delivery within 30 minutes of their order.
“Hema’s goal is to broaden the new retail model by working with retail partners like Sanjiang Shopping Club and Xingli Department Store,” says Hema CEO Hou Yi. “As our model becomes more established, it can be shared with other traditional retailers to help them transform in the digital age.”
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