Alibaba to Sell Department Store Chain Intime to Youngor Fashion

Alibaba Group Holding is reportedly set to sell its department store chain Intime Retail (Group) to Chinese apparel company Youngor Fashion, marking Alibaba’s exit from offline retailing in China, according to sources familiar with the matter, reports the South China Morning Post.

The two sides are expected to announce the deal this week, although the specific terms remain undisclosed, as per the sources. Alibaba, owner of the South China Morning Post, and Youngor, based in Ningbo, did not immediately respond to requests for comment.

This divestment would come seven years after Alibaba teamed up with Intime's founder to take the mainland shopping center and department store chain operator private in a HK$19.8 billion (US$2.5 billion) cash transaction. At the time, the deal was considered a key component of Alibaba's "new retailing" strategy, aiming to integrate online and offline businesses. Prior to the privatization, Alibaba had invested US$692 million in Hong Kong-listed Intime as part of a broader expansion strategy leading up to its initial public offering in New York in September 2014.

This move signifies Alibaba’s strategic shift towards focusing on its core e-commerce business in China, further streamlining its operations and capital allocation.