Alibaba to sell Chinese department store unit Intime for $1.3B loss in strategic reshuffle

Alibaba Group announced on Tuesday that it will sell its Chinese department store unit, Intime, and incur a $1.3 billion loss from the transaction.

The move is part of the company's ongoing effort to streamline its business portfolio and refocus on its core e-commerce operations, News.Az reports, citing foreign media.

The company last month unveiled a plan to integrate its domestic Chinese and international e-commerce platforms into a single business unit run by one leader for the first time, as it faces growing competition from discount-heavy retailers at home and abroad.

Rival platforms such as PDD Holdings' Pinduoduo and Temu, along with ByteDance's Douyin and TikTok, have stepped up competition with Alibaba by targeting cost-conscious shoppers with rock-bottom prices on everything from headphones to sweaters.

Alibaba said on Tuesday it would sell Intime to a consortium comprising Youngor Fashion and members of Intime's management team for 7.4 billion yuan ($1.02 billion), subject to customary regulatory approvals.

Alibaba purchased Intime in 2017 in a $2.6 billion deal to expand into the bricks-and-mortar retail segment and currently holds a 99% stake in the business.

The e-commerce giant has been looking to sell a number of consumer sector assets, including Intime, grocery business Freshippo and retailer RT-Mart to focus on its core business, Reuters reported in February.

Alibaba, under former boss Daniel Zhang, had expanded its presence in the retail sector by taking over several brick-and-mortar chains, including electronics retailer Suning and hypermarket operator Sun Art Retail, which runs RT-Mart.

But China's challenging consumer environment has put pressure on all retailers and e-commerce platforms.

In April, Alibaba co-founder Jack Ma expressed support for the internet giant's restructuring efforts, and acknowledged past mistakes in a lengthy memo to employees.

News.Az