Alibaba's growth exceeds expectations | RetailDetail

Alibaba's growth exceeds expectations

Alibaba's growth exceeds expectations
Shutterstock.com

Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

 

Consumption growth

In 2018’s first quarter (and the final one in the company’s fiscal year), Alibaba Group’s turnover grew 61 % to 9.9 billion dollars (8.3 billion euro). Its profit dropped a third to 2.2 billion dollars (1.8 billion euro), because of long-term growth investments, said CEO Daniel Zhang in the press release.

 

“With the continuing roll out of our New Retail strategy, our e-commerce platform is developing into the leading retail infrastructure of China. During the past year we also doubled down on technology development, cloud computing, logistics, digital entertainment and local services so that we are in a position to capture consumption growth in China and other emerging markets.”

 

For its full fiscal year, Alibaba’s turnover grew 58 % to 39.9 billion dollars (almost 34 billion euro) and the group has forecast another 60 % growth for its next fiscal year. The company is also increasingly focused on offline retail (with chains like Hema, Tmall Supermart and Intime), has an Southeast Asian presence through Lazada and already has more than 552 million Chinese active users on its marketplaces.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Régis Degelcke new EuroCommerce president

22/06/2018

Régis Degelcke is the new president of EuroCommerce. The chairman of Auchan will start his three-year mandate in July.

Tom&Co eyes 100 French stores

21/06/2018

Belgian pet shop chain Tom&Co continues its expansion in France with the opening of its 25th French store in Nantes. With a new concept, the chain hopes to be able to quickly expand to 100 stores in France.

France wants e-commerce tax

21/06/2018

If the French government get their way, the Hexagon will soon introduce a tax on e-commerce. Products would become 1 to 2 % more expensive, depending on the distance of the last delivery.

Toy store chain La Grande Récré pulls plug on Belgium

20/06/2018

French toy store chain La Grande Récré has decided to focus on the French market and to close its Belgian branch, due to continuing financial difficulties. 16 stores will close, causing a job loss of 95.

Colruyt Group beats expectations

19/06/2018

A solid holiday season allowed Belgian Colruyt Group to raise its market share and even keep its profit margins at the same level - contrary to expectations. The company also posted another online growth, meaning online is now worth 370 million euro.

Online supermarket Wink.be throws in the towel

18/06/2018

The Belgian Louis Delhaize Group has decided to terminate its online supermarket Wink.be. The company was started in 2013, but never even came near reaching the break-even point.