ALIBABA TO SELL DEPARTMENT STORE CHAIN IN TIME – The deal comes as Alibaba looks to shift focus to its core e-commerce and cloud operations
Alibaba Group said that it will sell its department store unit Intime to a consortium comprising of textiles firm Youngor Fashion and some of Intime’s management for 7.4 billion yuan ($1.02 billion), subject to customary regulatory approvals.
The deal comes as Alibaba looks to shift focus from its dominance in China’s retail sector to its core e-commerce and cloud operations.
Alibaba, which owns a 99% stake in Intime, expects to record a loss of about 9.3 billion yuan on its initial investment in Intime, it said. The sale is part of the tech giant’s restructuring efforts, with Intime facing challenges due to a significant decline in Chinese consumer spending post-COVID-19.
Intime was valued at around $4 billion in 2017 when Alibaba acquired the chain, which owns more than 100 stores in China.
