The Chinese company Alibaba agreed to sell the chain of general stores Intime with a loss of 1.3 billion dollars. The technology giant is scaling back its operations amid intensifying competition in the country's increasingly fierce e-commerce market.
Alibaba said Intime will be sold to "a consortium of buyers, including the Youngor Group and members of Intime's management team."
Alibaba expects to register a loss of around 9.3 billion. yuan ($1.3 billion) as a result of sales, AFP reported.
The company is a leading player in China's huge e-commerce sector, but in recent years the Hangzhou-based firm has faced stiffer competition as rivals grow and consumers seek to cut back on spending.
As a result, the company strives to increase its efficiency, partly by getting rid of non-existent assets.
Founded by entrepreneur Jack Ma in 1999, Alibaba began the largest restructuring in its history in recent years, splitting the group into six separate structures.
Last month, it recorded moderate annual revenue growth of 5% in the last quarter, which did not meet forecasts.
"In line with our strategy, we continue to invest in our core business while increasing operational efficiency," said Alibaba's then-Chief Financial Officer Toby Xu.
Prospects for further growth in the domestic market are complicated by stronger competition from local rivals, including Temu owner PDD Holdings, JD.com and TikTok creator ByteDance.
According to official data, the growth of retail sales in China slowed to 3% on an annual basis in November, which does not correspond to forecasts, as demand in the world's second largest economy remains weak. | BGNES
