Alibaba: Non-food off, food priority – RetailDetail BE

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Although the pandemic is still taking its toll in China, Alibaba’s revenue was flat last quarter. This is the first time that the e-commerce giant has not reported any growth, although its results are clearly above forecasts. Alibaba supermarkets achieved exactly the same turnover as a year ago: 205 billion Chinese yuan, or 30 billion euros. It is the first time in the company’s history that it has not registered any growth. This number exceeds all expectations, however, because China was still completely under the influence of the coronavirus last spring. Not only had purchases decreased, but factories closed again and supply problems multiplied. Sales of non-food products were particularly hard hit: on online marketplaces Taobao and Tmall, the group’s main online stores, sales of physical items fell by around 10%. However, Alibaba was able to more than make up for this decline with higher food sales. Online supermarket Taocaicai, which allows consumers to pick up their groceries the next day at a local outlet, saw growth of more than 200% in the quarter. The group’s supermarkets also set online sales records. Within the physical Freshippo chain, 68% of purchases are already made online. Therefore, Alibaba wants to focus more on grocery and daily grocery delivery. “Going forward, our priority will be to increase our market share in different types of daily consumer spending,” said CEO Daniel Zhang. In retail trade, Alibaba’s main activity, turnover fell “only” by 1%. Profits halved Net profit, on the other hand, has been further halved, while at the end of 2021 it had already fallen significantly. However, analysts expected worse. Thus, Alibaba can proudly announce that strict cost control and reduced investments have allowed most of its e-commerce platforms to reduce their losses. Now that the worst of the pandemic seems to be over, Alibaba is counting on a recovery for the rest of the pandemic. course With the normalization of logistics, sales also began to recover at the end of May. “After a relatively weak April and May, we saw signs of recovery in all of our companies in June,” said Daniel Zhang. This year, the company wants to further strengthen its position on the Hong Kong Stock Exchange, especially in the face of the threat of a withdrawal from the New York Stock Exchange. Stay up to date Receive our free newsletters and never miss the latest retail news. Subscribe Even as the pandemic is still taking its toll in China, Alibaba’s revenue was flat in the last quarter. This is the first time that the e-commerce giant has not reported any growth, although its results are clearly above forecasts. Alibaba supermarkets achieved exactly the same turnover as a year ago: 205 billion Chinese yuan, or 30 billion euros. It is the first time in the company’s history that it has not registered any growth. This number exceeds all expectations, however, because China was still completely under the influence of the coronavirus last spring. Not only…
#Alibaba #Nonfood #food #priority #RetailDetail

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