Alibaba set on growth path after divesting bricks-and-mortar retailing assets: analysts

South China Morning Post01-03

Alibaba Group Holding surprised investors a few years ago when the e-commerce giant's employee headcount surged to 252,084 at the end of December 2020, more than double its 122,399 total in the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2500416086?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-01-03 17:30","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2500416086","market":"us","top_or_hot":-1,"title":"Alibaba set on growth path after divesting bricks-and-mortar retailing assets: analysts","media":"South China Morning Post","content":"<div>\n<p>Alibaba Group Holding surprised investors a few years ago when the e-commerce giant's employee headcount surged to 252,084 at the end of December 2020, more than double its 122,399 total in the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/alibaba-set-growth-path-divesting-093000450.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba set on growth path after divesting bricks-and-mortar retailing assets: analysts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba set on growth path after divesting bricks-and-mortar retailing assets: analysts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-03 17:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/alibaba-set-growth-path-divesting-093000450.html><strong>South China Morning Post</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alibaba Group Holding surprised investors a few years ago when the e-commerce giant's employee headcount surged to 252,084 at the end of December 2020, more than double its 122,399 total in the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/alibaba-set-growth-path-divesting-093000450.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1267930227.SGD","symbol_name":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","start_time":0,"source_url":"https://finance.yahoo.com/news/alibaba-set-growth-path-divesting-093000450.html","article_id":"2500416086","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2500416086","pubTimestamp":1735896600,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The nearly 130,000 increase in staff primarily came from consolidating the operations of Sun Art Retail Group, China's largest hypermarket operator, which Alibaba took control of in a US$3.6 billion deal in October that year.The enlarged payroll size signified the price Alibaba was willing to pay to realise its New Retail strategy, which aims to leverage the synergy from running both online retail platforms and bricks-and-mortar stores. Alibaba owns the South China Morning Post.Fast-forward to January, and Alibaba has received kudos from analysts for divesting both Sun Art and department store chain Intime Retail  in a span of a few weeks.\"We see the disposal of two key offline retail businesses as being in line with its ongoing focus on e-commerce,\" Goldman Sachs analysts said in a research note on Thursday. In their assessment, both Sun Art and Intime were \"insignificant assets\" that provided minimal profit contribution.\"It's not that Alibaba cannot bear these burdens, but that the c","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","BK4565":"NFT概念","09988":"阿里巴巴-W","SCMP":"Sucampo Pharmaceuticals","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4554":"元宇宙及AR概念","LU1152091754.HKD":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" (HKD) INC","BK4531":"中概回港概念","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU1152091168.USD":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" INC","BK4585":"ETF&股票定投概念","LU0797268264.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (HKD) ACC","LU1046421795.USD":"富达环球科技A-ACC","HBBD.SI":"Alibaba HK SDR 5to1","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4587":"ChatGPT概念","BK4558":"双十一","LU0651946864.USD":"贝莱德新兴市场股票收益A2","LU1008478684.HKD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (HKD) ACC","BK4524":"宅经济概念","LU0918141887.USD":"安联亚洲实际收益股票基金","BK4538":"云计算","BK4527":"明星科技股","IE00BFMHRM44.USD":"NEUBERGER BERMAN GLOBAL EQUITY MEGATRENDS \"A\" (USD) ACC","BK4579":"人工智能","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","BK4588":"碎股","BK4504":"桥水持仓","BK4526":"热门中概股","LU1282648689.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AMG\" (USD) INC","LU0918141705.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AM\" (HKD) INC","LU1046422090.SGD":"Fidelity Pacific A-SGD","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","BK4503":"景林资产持仓","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","BABA":"阿里巴巴","BK4122":"互联网与直销零售","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BK4505":"高瓴资本持仓","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4581":"高盛持仓","LU2226246903.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT4\" (HKD) ACC"},"translate_title":"分析师：阿里巴巴-SW在剥离实体零售资产后走上增长道路","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":1,"SCMP":1,"HBBD.SI":0.9,"09988":0.6},"content_text":"Alibaba Group Holding surprised investors a few years ago when the e-commerce giant's employee headcount surged to 252,084 at the end of December 2020, more than double its 122,399 total in the previous quarter.\nThe nearly 130,000 increase in staff primarily came from consolidating the operations of Sun Art Retail Group, China's largest hypermarket operator, which Alibaba took control of in a US$3.6 billion deal in October that year.\nThe enlarged payroll size signified the price Alibaba was willing to pay to realise its New Retail strategy, which aims to leverage the synergy from running both online retail platforms and bricks-and-mortar stores. Alibaba owns the South China Morning Post.\nDo you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.\nFast-forward to January, and Alibaba has received kudos from analysts for divesting both Sun Art and department store chain Intime Retail (Group) in a span of a few weeks.\n\"We see the disposal of two key offline retail businesses as being in line with its ongoing focus on e-commerce,\" Goldman Sachs analysts said in a research note on Thursday. In their assessment, both Sun Art and Intime were \"insignificant assets\" that provided minimal profit contribution.\n\nAn employee waits for shoppers at Sun Art Retail Group's Auchan hypermarket store in Beijing. Photo: Reuters alt=An employee waits for shoppers at Sun Art Retail Group's Auchan hypermarket store in Beijing. Photo: Reuters>\nThe two transactions reflect Alibaba's sharpened focus on its core e-commerce business and cloud computing operation, which oversees its artificial intelligence-related initiatives, under a strategy initiated by group chief executive Eddie Wu Yongming.\nOn December 31, Alibaba agreed to sell its entire stake in Sun Art for a \"maximum amount\" of HK$13.1 billion (US$1.7 billion) to Chinese private-equity firm DCP Capital, which will acquire the Hangzhou-based company's interest in the hypermarket operator at HK$1.75 per share, according to a New Year's Day filing to the Hong Kong stock exchange.\nEarlier last month, Alibaba sold its entire Intime stake for around 7.4 billion yuan (US$1 billion) to Chinese apparel company Youngor Fashion and members of Intime's management team.\nAlibaba, however, will see no profit from those two deals. The company is expected to book a 13 billion yuan loss attributable to its shareholders when the Sun Art sale is completed, while it is taking a 9.3 billion yuan loss for divesting Intime.\n\"It's not that Alibaba cannot bear these burdens, but that the company sold [the offline shopping businesses] for a strategic consideration,\" said Zhuang Shuai, the founder and chief analyst at market consultancy Bailian. \"Only by going asset-light can Alibaba return to a growth path amid the fierce e-commerce competition.\"\n\nAlibaba Group Holding will book a loss from the disposal of its two major bricks-and-mortar shopping operations in China. Photo: Shutterstock alt=Alibaba Group Holding will book a loss from the disposal of its two major bricks-and-mortar shopping operations in China. Photo: Shutterstock>\nShares of Alibaba in Hong Kong closed down 1.33 per cent to HK$81.30 on Thursday.\nAlibaba's bricks-and-mortar retailing assets have been a drag on its financial results for years. Sun Art revenue, for example, has steadily declined over the past three years.\nIn its financial year ended March 2024, Sun Art sales were down 13.3 per cent to 72.6 billion yuan from a year earlier. It recorded a net loss of 1.6 billion yuan in the same period.\nSun Art contributed about 7 per cent to overall Alibaba revenue in the six months ended September 30, but its share in terms of payroll remained large. After a series of job cuts, Sun Art had 85,778 employees at the end of September. That made up 43.3 per cent of Alibaba's total payroll of 197,991 employees.\nThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. \nCopyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2500416086"}