Alibaba To Sell Chinese Department Store Chain After Fake Products – $1.3bn loss

E-tailer unloads Intime as it sharpens focus on hotly competitive core business

Alibaba invested in Intime in 2014, before becoming the controlling shareholder in a take-private deal in 2017. It originally said the transaction would cost up to $2.6 billion, although it said later in an annual report that it paid $1.6 billion in the privatization.

At the time of the move, the group was making a push into the so-called new retail business model, integrating its tech capabilities into bricks-and-mortar stores.

But in recent years, Alibaba has been shifting its focus back to its core e-commerce business, as rivals like Temu owner Pinduoduo and TikTok’s Bytedance gain ground in the sector. Alibaba recently merged its domestic and overseas e-commerce units as its competitors increasingly push overseas to offset slower growth in China.

Supermarket operator Sun Art Retail Group, which is controlled by Alibaba, also said in a filing in October that Alibaba was in discussions to sell its stake.

Weak consumer appetite in China has led to other internet companies cutting back on their offline retail investments. In September, discount retailer Miniso said it would acquire supermarket chain Yonghui Superstores from subsidiaries of e-commerce company JD.com and an affiliate of the Jardine Matheson Group.

Alibaba’s Hong Kong-listed shares fell 1.5% in morning trading on Tuesday, while Youngor’s Shanghai-listed shares were up by 5%.