Chinese online marketplace Alibaba Group has decided to divest its department store subsidiary, Intime, in a transaction resulting in a substantial loss of $1.3bn.  

The move is part of the company's strategic refocus on its foundational e-commerce operations, as reported by Reuters. 

The sale involves a transfer of the ownership of Intime to a consortium including Youngor Fashion and including members of Intime's executive team.  

The deal is valued at 7.4bn yuan ($1.02bn).  

In 2017, Alibaba made a significant investment in physical retail space by acquiring Intime for $2.6bn, and holds a 99% stake in the company.  

The acquisition was a part of Alibaba's broader strategy to integrate online and offline shopping experiences. 

However, the impending sale is expected to result in a loss of around 9.3bn yuan for Alibaba.  

The finalisation of the transaction is contingent on approval from China's antitrust authorities.

The divestiture underscores Alibaba's ongoing restructuring efforts, which gained momentum in 2023 when the conglomerate divided its operations into six distinct business units and subsequently underwent several executive reshuffles. 

As reported in February 2024, Alibaba has been seeking buyers for consumer-facing assets including Intime, grocery chain Freshippo and RT-Mart, a retail giant it acquired through Sun Art Retail. 

In November 2024, Alibaba unveiled plans to consolidate its domestic and international e-commerce platforms under a unified leadership in response to intensifying competition from rivals offering steep discounts.  

In the same month, Alibaba Group’s retail arm Taobao and Tmall reported robust growth in gross merchandise volume and a record number of active buyers during their 16th annual 11.11 Shopping Festival.