JD.com confirms acquisition of Hong Kong supermarket chain Kai Bo to strengthen fresh produce market

JD.com (9618) said it has officially completed the acquisition of Hong Kong’s Kai Bo Food Supermarket, accelerating its expansion into the local retail market.

The company has established a new retail business unit, appointing Kai Bo founder Lam Hiu-ngai as its head.

According to Kai Bo’s website, the supermarket chain currently operates around 90 stores in Hong Kong.

A JD.com spokesperson stated that the acquisition marks the company’s formal entry into Hong Kong’s brick-and-mortar retail sector.

JD.com also announced a three-day promotional campaign (16-18 August), offering a 20 percent discount on the first batch of JD-supplied products available in Kai Bo stores.

Reports last month indicated that the two parties signed the agreement about four months ago, with a transaction value of HK$4 billion, including Kaibo’s retail network and properties. Payment is expected to be made in installments.

Initially, JD and Kaibo planned to establish a new joint venture by 1 August to manage operations. However, sources close to JD.com clarified that the actual transaction amount was significantly lower than reported.

STAFF REPORTER