ALBAWABA – Alibaba, the Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology, announced selling Intime Department Store, a chain of department stores with stores in Beijing, Zhejiang, Hubei, Sichuan, Shaanxi, and Anhui, for $1 billion.
Alibaba sells Intime department store
The Chinese Alibaba group announced the sale of its Intime department store chain, as the company is aiming to shift away from retail industry and business.
Alibaba sealed the deal with Youngor Group Company, a public textiles and clothing enterprise in Ningbo, Zhejiang, China for $1 billion (7.4 billion yuan). According to the Alibaba, this deal is expected to result in losses of approximately to $1.3 billion (9.3 billion yuan).
The company stated that this decision was made as they aim to shift focus from the retail industry to the e-commerce sector, amid increasing competition in the Chinese market.
According to the Alibaba, this deal is expected to result in losses of approximately to $1.3 billion (9.3 billion yuan). (mingchen_official)
It is worth noting that Alibaba is currently facing diverse challenges as the Chinese economy slows down and competition continues to emerge in the e-commerce sector.
Alibaba stocks
Following the announcement, Alibaba's shares recorded a loss of around 2.1%, but recovered slightly afterwards.
Jianggan Li, founder and CEO of Momentum Works, a venture and insights firm, commented: "I think in the short-term Alibaba just doesn't have the attention to actually do offline retail and do it well. Finding the right buyer at the right price for offline assets remains a challenge.”
