JD.com reportedly buys HK supermarket chain Kai Bo for HK$4bn

China's eCommerce giant JD.com has acquired Hong Kong supermarket chain Kai Bo Food Supermarket (佳寶食品超級市場) for around HK$4 billion as part of its retail expansion efforts, MARKETING-INTERACTIVE understands.

It is also understood that JD.com will leverage its supply chain advantages in the future to further enrich the quality supply in Hong Kong's retail consumer market, with specific official information to be announced in August.

JD.com and Kai Bo signed the agreement around four months ago, which includes Kai Bo’s retail network and property assets, according to HK01. The transaction, involving around 70% of the stake in the supermarket chain, will be completed in phases. 

Following the acquisition, a new company will be established on 1 August to oversee daily operations under the joint management of JD.com and the supermarket chain, according to the report. The agreement also contains a "transition period" clause, during which JD.com will not assume full management immediately. Instead, Kai Bo's founder, Lam Hiu Ngai (林曉毅), and his team will continue to manage operations for three years, after which JD will decide its next steps.

Meanwhile, a JD.com representative told SCMP that the report significantly deviates from the facts and is inaccurate.

MARKETING-INTERACTIVE has reached out to JD.com and Kai Bo Food Supermarket for a statement respectively.

Founded in 1991, Kai Bo currently operates around 90 outlets across Hong Kong, employing over 1,000 staff, according to its website. It offers a variety of frozen poultry, meat, and seafood, as well as a range of groceries, fresh vegetables, and fruits, aiming to fulfill its commitment to "affordable quality."

Don’t miss: JD.com expands audience reach in HK in latest marketing push

On the other hand, JD.com has long entered the Hong Kong fresh food market. JD's fund, GenBridge Capital (啟承資本) is the second-largest shareholder of the mainland fresh supermarket Qiandama (錢大媽). GenBridge Capital began investing in Qian Dama as early as 2018.

Furthermore, back in March, JD.com ramped up its investment in the Hong Kong eCommerce market by launching a limited-time service called “買貴就賠”. This was a continuation of the HK$1.5 billion investment announced in September last year to expand into the Hong Kong market. The investment focused on product pricing, logistics subsidies, and service enhancements, with no set limit on long-term investment.

Related articles:

JD.com founder Richard Liu delivers meals in publicity stunt amid feud with Meituan
HKTVmall founder takes a jab at JD.com for similar app design
JD.com expands audience reach in HK in latest marketing push