The shares being sold represent 78.7% of GaoXin Retail's total issued shares. Alibaba first invested in GaoXin Retail in 2017, increasing its stake in 2020, when GaoXin Retail became a consolidated subsidiary of Alibaba Group.

The company being sold, GaoXin Retail, is the parent company of RT-Mart. Thus, the much-discussed sale of RT-Mart has finally been finalized, with DeHeng Capital emerging as the buyer.

According to the announcement, DeHeng Capital will acquire the shares held by Alibaba’s wholly-owned subsidiaries, Jixin and Taobao China, as well as those held by NewRetail. The total number of shares to be purchased amounts to approximately 7.03 billion, representing about 73.66% of GaoXin Retail’s issued shares. The purchase price is set at a maximum of HKD 1.75 per share, which includes HKD 1.55 in cash and HKD 0.20 in interest. The maximum total amount for the deal is about HKD 13.138 billion. Earlier, on December 17, 2024, Alibaba also announced that it would sell all of its shares in Intime Retail to the Yuyuan Group and Intime's management team for approximately RMB 7.4 billion. This deal is expected to result in a loss of approximately RMB 9.3 billion.

Intime, one of China’s leading department store chains, was listed on the Hong Kong Stock Exchange in 2007, becoming the first mainland Chinese department store to do so. Alibaba initially invested in Intime in 2014. By the end of 2023, Intime’s total management area was 3.76 million square meters, with annual customer traffic reaching 200 million and sales exceeding 30 billion yuan. Intime operates 60 department stores across China, with multiple projects in the pipeline.

In 2023, Alibaba launched its most significant organizational restructuring since its inception. New CEO Wu Yongming stated that Alibaba would prioritize its existing businesses based on market size, business models, and product competitiveness, categorizing them as either core or non-core. For non-core businesses, Alibaba would adopt various capital strategies to quickly unlock their asset value. Since then, Alibaba has accelerated the pace of exiting non-core assets. Alibaba's chairman, Cai Chongxin, stated that in the first nine months of the 2024 fiscal year, Alibaba had already sold $1.7 billion worth of non-core assets.

Focusing on its two core businesses—e-commerce and cloud computing—Alibaba has also defined its AI-driven strategy. As a result, traditional retail businesses, which are less aligned with its core operations, such as Intime and GaoXin Retail, have been marginalized, and their sale was long anticipated.

In October 2016, Jack Ma officially introduced the concept of "New Retail" at the Yunqi Conference, sparking a transformation in traditional retail through the internet. Alibaba was quick to invest in various New Retail initiatives, with GaoXin Retail, the parent company of RT-Mart, being one of its key moves.

In 2017, Alibaba first invested in GaoXin Retail, announcing an investment of HKD 22.4 billion to acquire a 36.16% stake, making it the second-largest shareholder. In 2020, it increased its stake by investing another HKD 28 billion, bringing its direct and indirect holdings to 72%, thus becoming the controlling shareholder and consolidating GaoXin Retail into its financial reports. In total, Alibaba spent over HKD 50 billion on its acquisition of GaoXin Retail.

After Alibaba took control, GaoXin Retail began its digital transformation, including the development of a standalone app and integration with services like Taoxian, Ele.me, and Tmall Supermarket. However, despite Alibaba's backing, GaoXin Retail's performance continued to decline, as it struggled in the fiercely competitive e-commerce and supermarket industries.

By January 1, 2025, the deal was finalized. The sale price, however, represents a significant loss—far less than the more than HKD 50 billion Alibaba invested, with a loss exceeding HKD 37 billion due to the sale.

The New Retail sector has faced significant challenges in recent years, with many physical stores closing across China. According to the China Chain Store & Franchise Association (CCFA), the top 100 Chinese supermarket companies saw a 7.3% drop in sales in 2023, with the total sales for the top 100 reaching RMB 868 billion, and the total number of stores decreasing by 16.2%. Among the top 100, 56 companies saw sales decline. The situation has only worsened entering 2024.

In the first three quarters of 2024, Yonghui Superstores reported revenue of RMB 54.549 billion, a 12.14% decline, and a net loss of RMB 0.78 million. Jiajiayue reported revenue of RMB 14.127 billion, a 1.78% increase, but its net profit fell by 9.72%. Zhongbai Group reported revenue of RMB 2.42 billion, a 15.83% decrease, and a net loss of RMB 1.9 billion, representing a 210.15% decline. Guoguang Chain’s revenue grew by 12.74%, but its net profit fell by 30.26%. The strategy for survival seems to be closing stores while trying to stay afloat, as seen with Yonghui Superstores, which announced the closure of several locations in 2024.

A similar situation has occurred at China Resources Vanguard, which closed four stores in a month. In December 2024, the company announced the closure of stores in Yipeng, Yangliu Jun, and Desheng.

Under ongoing pressure, more companies are being forced to exit the market. In January 2023, Wang Tian, chairman of the Bubu Gao Group, sold a 10% stake to the State-owned Assets Supervision and Administration Commission (SASAC) of Xiangtan City, making the latter the de facto controller of Bubu Gao. In December 2023, the controlling shareholder of Hongqi Chain, Cao Shiru, and his son Cao Zhenjun transferred a 6.91% stake to Sichuan Shantou Investment, relinquishing voting rights for the remaining 20.72%.

However, not all businesses are retreating. Fat East's sales reached RMB 10.7 billion in 2023, and in 2024, Fat East’s sales surged to RMB 16.964 billion, marking a more than 50% increase from the previous year. This indicates that in just two years, Fat East has doubled its sales. Meanwhile, giants like Sam's Club, Costco, and Aldi have seen their sales continue to grow in China.

While the supermarket retail industry appears to be in decline, new opportunities are quietly emerging. The outdated business models that cannot keep up with the times are being phased out, while new life is beginning to take shape in the market.