Alibaba Buys a Third of Discount Chinese Grocery Chain Sanjiang

  • E-commerce giant makes its latest foray into physical retail
  • Alibaba sees upgrade of retailers as a big opportunity

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Alibaba Group Holding Ltd. will spend more than 2 billion yuan ($290 million) buying about a third of Sanjiang Shopping Club Co., picking up a slice of a regional Chinese discount supermarket chain with more than a million members.

Shares of Sanjiang surged by its daily 10 percent limit on Monday, giving the Ningbo-based company a market value of about $830 million.