Alibaba Group Holding Ltd. has taken a stake of more than 9% in U.S. e-commerce site Zulily Inc., giving it new exposure to the American consumer market.
The stake was disclosed in a securities filing the showed Alibaba spent around $56 million buying stock in Zulily, much of it as the U.S. The company’s shares plunged in recent days.
It wasn’t previously known that Alibaba owned Zulily shares. The Seattle-based website sells a wide range of clothing and other merchandise mostly aimed at moms. It offers deep discounts in “flash sales” that typically have time limits.
The company considers Alibaba BABA, -0.09% a competitor, according to Zulily’s ZU, +12.82% filings.
Alibaba, which has made minority investments in a number of U.S. Technology companies, isn’t looking to acquire Zulily outright, a person familiar with the matter said.
Five-year-old Zulily went public in November 2013 at $22 a share. The shares then surged above $70 in early 2014, as the company reported fast sales growth and added new customers at a rapid pace. Its sales topped $1 billion last year, making it one of the fastest retailers to reach that milestone.
But Zulily’s shares have plunged this year in the wake of disappointing quarterly reports that showed sharply decelerating sales growth and difficulty holding on to customers, many of whom aren’t returning to Zulily’s website after making a first purchase.
e-commerce
Our successful eCommerce software solutions deliver an optional shopping experience for targeted prospects. Our solution creates fast, easy browsing and simple ordering and checkout process. Pixotri technology is a creative house developing quality web designs, E-Commerce solution. SEO services and Gaming development.
Contact us for your online shopping requirements email-info@pixotritechnologies.com. Visit our website: www.pixotritechnologies.com
No comments:
Post a Comment