Performance Analysis Of Alibaba’s Acquisition Of Sun Art Retail Based On The "New Retail" Model

With the rapid development of Internet technology and the combination of Internet technology and offline stores,the "new retail" model has emerged.The new retail model can not only solve the drawbacks of traditional retail models,but also rebuild the connection between consumers and stores.The new retail model combines offline stores with the Internet,and will continue to promote the development of Internet technology.In recent years,in order to encourage economic growth,the country has introduced many corresponding policies to promote the reform of the retail industry.Encouraged by national policies,excellent Internet companies have begun to seek traditional retail mergers and acquisitions in order to seek a new seal.Alibaba,as a leader in the internet industry,first proposed the concept of a new retail model and found the largest supermarket brand in China-Sun Art Retail Group for mergers and acquisitions.This article selects the acquisition case of Alibaba’s acquisition of Sun Art Retail as the research object,as it has a certain representativeness in the new retail field.Firstly,this article deeply explores the issues of enterprise merger motivation,enterprise merger performance,and the development process of the retail industry by summarizing and analyzing relevant literature on the current situation of retail industry mergers,merger motives,and the development direction of new retail.Then,this article provides a detailed introduction of Alibaba’s acquisition of Sun Art Retail and conducts a detailed analysis of its merger motives.Next,this article evaluates the short-term market performance of Alibaba using event study method,and evaluates the long-term financial performance of Alibaba by analyzing its profitability,solvency,operational efficiency,and development capacity using data from 2016 to 2021.Furthermore,the article also evaluates Alibaba’s enterprise value using EVA analysis method and analyzes its non-financial performance using entropy weight method.This article conducts a comprehensive study and analysis of Alibaba’s acquisition of Sun Art Retail using event study method,financial indicators,EVA analysis method,and entropy weight method.Finally,this article summarizes and looks forward to this merger.This article conducts a performance analysis of Alibaba’s acquisition of Sun Art Retail,and deeply investigates Alibaba’s merger performance.The results show that Alibaba performed well in short-term market performance,but did not significantly improve its financial indicators after the acquisition;however,economic value added analysis indicates that Alibaba’s enterprise value significantly increased after the acquisition,creating profits for shareholders.In terms of non-financial performance evaluation,Alibaba performed well after the merger.Overall,the performance of Alibaba’s acquisition of Sun Art Retail was good.Based on the performance evaluation results,this article provides some insights,such as finding new breakthroughs based on environmental factors,upgrading digital platforms,selecting merger targets rationally,and focusing on post-merger integration.Hopefully,this article can provide effective reference value for other relevant enterprises and help improve their merger performance.