Alibaba Group Holding Limited BABA is considering the sale of its grocery business Freshippo and retailer RT-Mart, aligning with a strategic pivot towards focusing on its core e-commerce operations and shedding non-essential, unprofitable units.
This decision under chairman Joe Tsai and CEO Eddie Wu reflects a broader restructuring within Alibaba, and it signifies a significant shift in the company’s business strategy as it divests from non-core activities amidst increased regulatory scrutiny in China.
In a move to reposition its focus on domestic e-commerce, Alibaba is also reportedly weighing the sale of the InTime department store branch, marking a strategic pivot away from blending physical and digital retail markets.
Eddie Wu’s leadership has brought about a transition towards granting Alibaba’s business units more market independence and vigorously defining core versus non-core activities, necessitating divestment from offline ventures that have struggled to integrate with Alibaba’s primary online commerce model.
The company’s refocus on domestic e-commerce, AI, cloud computing, and international expansion also led to the announcement of its intention to split into six units, seeking fundraising or listings for most of them.
Price Action: BABA shares are trading lower by 1.69% at $71.23 on the last check Friday.
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