Groupon's (GRPN) Move Into Retail Pushes Forward
Tweet
Share
E-mailGet Alerts GRPN Hot Sheet
Up)Join SI Premium – FREE
Groupon (Nasdaq: GRPN) is looking to improve an already strong-performing segment.
The WSJ noted today that Groupon is looking at warehouse space to bolster its Groupon Goods segment. CEO Eric Lefkofsky noted that bringing shipping in-house would help bolster margins.
Sales for Groupon Goods were $186 million in its most recent quarter, nearly triple what it was in the same period last year.
The move would be an ambitious one; Groupon would position itself as a more formidible competitor against the likes of Amazon.com (Nasdaq: AMZN) and Overstock.com (Nasdaq: OSTK), just to name two. Lefkofsky notes that Groupon's model is different than competitors' and might be closer to something like what Wal-mart's (NYSE: WMT) Sam's Club or Costco (Nasdaq: COST) offer: fewer products, but cut-rate prices.
Groupon had been trying to diversify away from its traditional model of daily deals and into more of a retail outlet. The Company might be ambitious, but if it can keep growth in Goods at or near the same trajectory, it might be able to regain solid footing in short order.
Shares of Groupon slipped 3.7 percent Tuesday and are marginally lower in late trading.
The WSJ noted today that Groupon is looking at warehouse space to bolster its Groupon Goods segment. CEO Eric Lefkofsky noted that bringing shipping in-house would help bolster margins.
Sales for Groupon Goods were $186 million in its most recent quarter, nearly triple what it was in the same period last year.
The move would be an ambitious one; Groupon would position itself as a more formidible competitor against the likes of Amazon.com (Nasdaq: AMZN) and Overstock.com (Nasdaq: OSTK), just to name two. Lefkofsky notes that Groupon's model is different than competitors' and might be closer to something like what Wal-mart's (NYSE: WMT) Sam's Club or Costco (Nasdaq: COST) offer: fewer products, but cut-rate prices.
Groupon had been trying to diversify away from its traditional model of daily deals and into more of a retail outlet. The Company might be ambitious, but if it can keep growth in Goods at or near the same trajectory, it might be able to regain solid footing in short order.
Shares of Groupon slipped 3.7 percent Tuesday and are marginally lower in late trading.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Groupon (GRPN) option implied volatility into headlines
- L'Oreal stock jumps as Q1 sales rise after dermatological beauty outperformance
- Meta earnings preview: 'Hard to argue with excellence'
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
