The move comes on the heels of a recent purchase of a stake in retailer Suning Commerce Group Co Ltd as well as plans to take a controlling stake in Intime Retail Group Co Ltd and privatize it.
There are currently no plans for financial investment, an Alibaba spokesman said.
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Shanghai-based Bailian Group is one of China’s largest retailers by sales, operating 4,700 outlets in 200 cities including supermarkets, convenience stores and pharmacies. Alibaba has an active user base of around 500 million.
Shares in Bailian Group’s subsidiaries surged on Monday, with Shanghai Bailian Group Co Ltd climbing by the 10 percent daily limit, Lianhua Supermarket Holdings Co Ltd jumping close to 10 percent and Shanghai Material Trading Co Ltd up 5 percent.
Bailian and Alibaba will initially cooperate on supply chain technology using Alibaba’s big data capabilities as well as integrating Alipay payments with Bailian Group’s existing membership program.