- Alibaba Group Holding Ltd. is contemplating the sale of its InTime department store business, signaling a potential shift in its long-standing strategy to dominate both physical and online retail. The Chinese internet giant has engaged with various firms to gauge their interest in acquiring the nationwide chain of over 100 stores and malls. Talks were initiated around the time Joseph Tsai assumed leadership in 2023, reflecting the company's broader restructuring efforts. The move raises questions about Alibaba's commitment to its earlier vision under former CEO Daniel Zhang, especially as it grapples with challenges in growing its core business amid intense competition.
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InTime, valued at around $4 billion in a 2017 take-private deal led by Alibaba, faces uncertainties in attracting interest amid a decline in post-Covid Chinese consumption. The potential sale would mark a reversal of one of the significant acquisitions made during Zhang's tenure. Alibaba, currently under the leadership of Tsai and CEO Eddie Wu, is navigating a comprehensive overhaul, focusing more on its core e-commerce business and cloud operations. The renewed emphasis on restructuring comes as Alibaba aims to adapt to changing market dynamics and reposition itself for sustained growth.
Why it matters
The company is now directing efforts toward internal restructuring, moving away from grand plans like the canceled spinoff of its $11 billion cloud division. As Alibaba reevaluates its portfolio, InTime and other non-core assets may be part of potential divestitures, aligning with the company's evolving strategy.
