Alibaba Group co-founder and chairman Jack Ma image : Michael Bloomberg on Flickr

Alibaba is said to be in talks to purchase a stake in the China operations of German mega-retailer Metro AG. That’s according to Reuters, which cites three sources familiar with the matter. This news comes after Alibaba rival Tencent last year signed a partnership with French retailer Carrefour to launch smart retail stores, that allows customers pay via facial recognition at unmanned checkouts.  Tencent invested in Carrefour’s China unit as part of the partnership.

NYSE listed Alibaba is looking to develop a business-focused retail strategy, Reuters reports. Teaming up with a large wholesaler like Metro could also bring a lot to the table for the company’s fresh produce units – Yiguo and Hema. In 2017, Alibaba spent HK$22.4 billion ($2.87 billion) on a significant stake in China’s number one hypermart operator, Sun Art Retail Group.

Metro executives celebrates its IPO at the Frankfurt Stock Exchange image : Metro AG

Metro although a large retailer, has been restructuring in recent years to focus on its main cash-and-carry business. The company sold its Kaufhof chain of department stores and also split from consumer electronics retailer Ceconomy. It’s also looking to sell its loss-making Real hypermarkets chain, stating on Tuesday of a sale in progress.

Metro has 95 China stores and real estate assets in major centers, like Beijing and Shanghai, Reuters says. Metro and Alibaba have already partnered for online retail in China, so a deal like this won’t seem far-fetched.

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