Chinese e-commerce giant Alibaba has decided to sell its department store chain, Intime, at a massive loss of $1.3 billion.
The move reflects Alibaba’s efforts to remain competitive in a rapidly changing market.
The sale will transfer Intime to a consortium of buyers consisting of Youngor Group and Intime management members.
According to Alibaba’s announcement, the company expects to lose $1.3 billion (¥9.3 billion) from the sale.
The sale comes as Alibaba faces increasing challenges in the e-commerce market, with competitors increasing and shoppers becoming more cautious with their spending.
To adapt, Alibaba has focused on streamlining its operations by divesting non-core businesses.
The company recently reorganized into six different divisions to improve efficiency and focus on core strengths.
Growth, however, has been modest, with Alibaba reporting just 5% revenue growth last month.
Meanwhile, competition from other players such as JD.com and ByteDance has added pressure on Alibaba, and weaker retail sales growth in China has also affected Alibaba.
