Alibaba Group will sell its Chinese department store unit Intime, resulting in a $1.3 billion loss, as the company restructures its business portfolio to focus on e-commerce. This move marks another step in Alibaba’s efforts to revamp its operations after splitting into six business units last year and making significant top management changes.
The sale follows the integration of Alibaba’s domestic Chinese and international e-commerce platforms into a single business unit, led by one leader for the first time. However, the company faces growing competition from discount-heavy retailers at home and abroad, which has put pressure on its operations in the challenging Chinese consumer environment.
Alibaba purchased Intime in 2017 for $2.6 billion but currently holds only 99% of the stake. The company has been looking to sell various consumer sector assets, including Intime, grocery business Freshippo, and retailer RT-Mart, to focus on its core e-commerce operation.
The sale is expected to be completed subject to customary regulatory approvals, with a consortium comprising Youngor Fashion and members of Intime’s management team buying the business for 7.4 billion yuan ($1.02 billion).
Source: https://www.reuters.com/markets/deals/alibaba-sell-mall-chain-1-bln-part-latest-overhaul-2024-12-17