Chinese Web Giant Alibaba Hedges On Click & Collect With Department Store Deal

Chinese e-commerce giant Alibaba has invested £430 million in a Chinese department store operator in an apparent attempt to grow its exposure to off-line retailing.

The investment in the primarily bricks and mortar chain Intime Retail includes a 9.9% stake and around two thirds of the funds invested in the form of convertible bonds.

Intime operates 36 department stores in China and has previously teamed up with with Alibaba’s e-payment affiliate, Alipay Wallet, to offer shoppers mobile payment in Intime’s stores.

The move has been interpreted as a foothold into click and collect services for goods ordered via the Alibaba site.

'We see significant opportunities to extend our e-commerce platform to physical retail,' Chief Operating Officer of Alibaba Group Daniel Zhang in a press release.

Alibaba's IPO is expected to launch in New York this year is expected to be one of the biggest stock listings by an internet firm. Analysts have forecast that it will raise as much as £9 billion ($15 billion).