China's Alibaba said Tuesday that it had agreed to sell department store chain Intime at a $1.3 billion loss, as the tech giant trims down its operations with competition intensifying in the country's cutthroat e-commerce market.

Alibaba will offload Intime to Youngor, the Ningbo-based fashion group, and members of the Intime management team.

Chinese online marketplace company Alibaba Group Holding Limited said on Tuesday that the sale of a department store chain will result in losses equivalent to $1.3 billion. Alibaba announced its agreement to sell the Intime chain in China to a textile and apparel company Youngor Group-led consortium in a deal worth approximately 7.