Alibaba Group Holding Ltd. is increasingly focusing on the offline retail sector, a strategic shift that puts it in direct competition with other Chinese tech giants, JD.com and Meituan. As online traffic growth slows, these companies are looking to physical stores as the new frontier for customer acquisition and supply chain innovation. While competitors like Meituan have been aggressively launching new discount supermarkets, Alibaba's approach has been more measured, focusing on consolidating and rebranding its Hema supermarket and outlet stores. In August, the company closed its X membership stores to concentrate resources on its core Hema Supermarket and Hema Outlets. The rebranded 'Super Hema NB' (Neighbor Business) has been expanding, with nearly 300 stores by September, and the Outlets format has seen a 45% growth rate. This move into offline retail is not just a local trend; international brands like Aldi are also expanding their physical presence in China, adding to the competitive pressure and pushing local players like Alibaba to innovate their supply chain and business models.