Private equity firm DCP Capital has agreed to acquire Alibaba’s majority stake in Sun Art, which operates the RT-Mart chain and the Costco-like M-Club membership stores across China.

Alibaba Group has agreed to sell its shares in Sun Art Retail in a $1.7 billion deal, the latest divestment as part of efforts to focus on its core e-commerce business.

Alibaba stock was lower Thursday after it announced a $1.7 billion deal to sell Sun Art, a hypermarket operator in China.

Alibaba sells its 78.7% stake in Sun Art Retail for $1.6 billion, focusing on core e-commerce amid rising competition.

Chinese e-commerce major Alibaba Group has agreed to divest its interest in the Sun Art Retail Group, a hypermarket operator, to Paragon Shine for K$12.29bn ($1.58bn). The buyer is an exempt company incorporated in the Cayman Islands with limited liability.