Alibaba Group Holding (NYSE:BABA) is reportedly evaluating the potential sale of its InTime department store unit, Bloomberg News reported on Thursday.
The move, which comes as part of Alibaba’s comprehensive restructuring effort, signals a possible shift in the Chinese internet giant's long-standing goal of dominating online and physical retail.
BABA rose 1.5% in premarket trading.
Per the report, Alibaba has contacted various companies to gauge their interest in buying its network of over 100 stores and malls across the country. These outreach efforts began around the time Joseph Tsai took over from Daniel Zhang as the leader of the e-commerce firm in 2023.
The report also mentioned that discussions with at least one interested buyer took place as recently as last month.
Valued at around $4 billion in a 2017 take-private deal led by Alibaba, InTime's sale prospects are uncertain due to the sharp decline in Chinese consumer spending post-Covid.
Therefore, initial negotiations might not succeed, Bloomberg’s report suggested.
On the other hand, a sale would mark a significant shift from the strategies implemented by Alibaba's previous leader, Zhang, especially at a point where the company is grappling with challenges in expanding its primary business and rejuvenating emerging sectors like cloud services amid fierce market competition.