Retailers must learn to coexist with tech giants

Independent supermarkets and shops in China will find the retail environment hard as online-to-offline becomes the norm for grocery business that is increasingly influenced by two major technology blocs, according to a recent research report.

The country's grocery landscape has entered "the age of empires", represented by Alibaba Group Holding Ltd and an alliance between Tencent Holdings Ltd and Alibaba's primary e-commerce rival JD.com Inc, according to findings released by consultancy Oliver Wyman in May.

After training their sights on physical retail, the pair have thus far acquired stakes in six of China's top 10 hypermarkets, the country's biggest electronics retailer, one of the largest department stores and the largest commercial property and entertainment conglomerate, the study said.