Alibaba Group has made a significant move to reorganize its operations by selling its stake in Intime, a prominent Chinese department store chain, for approximately 962 million euros. This strategic decision aims to optimize the company’s resources and focus on its core e-commerce business.
The sale, which is pending regulatory approval, involves a partnership between fashion conglomerate Youngor Group, led by Chinese billionaire Li Rucheng, and Intime management as the buyers.
Streamlining Operations
China’s challenging retail landscape has prompted Alibaba to reassess its strategy, leading to a consolidation of its domestic and international e-commerce operations under the Alibaba E-Commerce Business Group. This change is designed to enhance competitiveness in the market.
As part of this restructuring, Alibaba has decided to divest several retail assets, including Intime, Freshippo, and RT-Mart. The sale of Intime marks the first completed agreement in this process.
In 2017, Alibaba collaborated with Shen Guojun, founder of Yintai Group, to privatize Intime with a significant investment. This move aimed to integrate Internet technologies into traditional retail, a key objective of Alibaba’s founder, Jack Ma. However, the expected results have not materialized, leading Alibaba to refocus on its core business.
According to industry analysts, Alibaba is likely to continue selling assets to concentrate on its digital businesses. The future of Freshippo, a grocery business that aimed to revolutionize offline retail with technology, remains uncertain.