No Slowing Down Alibaba; REI VS. Black Friday; Rumor Has it Walgreens is Going Shopping

Slowdown? What slowdown?

Image courtesy of  jesadaphorn/

Image courtesy of jesadaphorn/

There might be an economic slowdown in China, but judging by Alibaba’s recent earnings, you’d never know it. China’s largest e-commerce site easily topped Wall Street predictions, adding 57 cents per share on $3.5 billion in revenue. Forecasts were for 54 cents on $3.35 billion. The company saw a 32% increase with a lot of help from major growth in mobile revenue. Mobile revenue alone pulled in a staggering $1.66 billion, triple last year’s figures, and accounting for more than 60% of the company’s retail sales. And its monthly mobile active users only continue to grow, up 57% over the same last year, an easy feat for Alibaba, yet something hundreds of other companies wished they could do. Yahoo also came out a winner today, as well, since it owns a 15% stake in Alibaba.  The company also plunked down about a $1 billion for some cloud computing investments which could see some big returns. Now Alibaba is gearing up for Singles Day, as in November 11, as in 11/11, one of the countries biggest shopping days. Last year, the company hit a record $59 billion in sales on that day and chances are it might just break that record again this year. Now about that downturn..

Take it outside…

Image courtesy of  marcolm/

Image courtesy of marcolm/

Don’t bother getting on line at 5 am on Black Friday outside of any one of REI’s 143 locations. Don’t bother looking for any Black Friday coupons, discounts or promotions from REI either. REI president and CEO, Jerry Stritzke, announced today that its stores will be CLOSED on what is considered one of the most important shopping days of the year. Stritzke is giving his 12,000 employees a paid day off “so they can do what they love most—be outside.”  The company, which brings in annual sales of $2.2 billion, is hoping that consumers will follow suit instead of spending the day spending money. The company has set up a special website,, that among other things, recommends hiking trails, that will presumably remind you of all the gear you need to go and buy at REI once the stores re-open. That’s no joke. As far as PR goes, this is one tactic that is sure to help the company rake in more sales this holiday season than in year’s past. Considering that in 2014, sales from Black Friday weekend actually declined 11%, staying closed on Black Friday, doesn’t seem so insane after all, even though the day has always ranked as one of REI’s ten best sales days, And if you’re jonesing to spend some money online at REI on Black Friday, don’t hold your breath as your order won’t even get processed until Saturday.

Keeps growing and growing…

Image courtesy of Serge Bertasius Photography/

Image courtesy of Serge Bertasius Photography/

The Wall Street rumor mill is all abuzz with talk that Walgreens Boots Alliance is about to scoop up smaller competitor Rite Aid for upwards of $10 billion. That might be a very generous offer considering that even after shares of Rite Aid jumped 36% to $8.27, the company’s valuation was still only around $8.7 billion. But again, this is all just rumor. For now. Until today, shares of Rite Aid were down 29% since it announced last month that it was lowering its profit and revenue forecast. The move will up Walgreen’s game in the $ 263 billion drug distribution industry where it currently holds 31% of the market share to CVS’s 58%. Rite Aid’s share is but a paltry 10%.  Profits from this industry are a very lucrative $10.3 billion. So who can blame Walgreens for wanting to stake out a bigger share. Walgreens Boots Alliance CEO Stefano Pessina recognizes the United States’ government’s ever-growing role in the pharmaceutical industry all because of the Affordable Care act aka ObamaCare, and he thinks consolidating U.S. pharmacies could yield some massive returns. Of course, Walgreens and CVS still have to contend with competition from online, mail-order and wholesale pharmacies, but for now, they’ll satisfy themselves with bigger fry. Incidentally, Walgreens is supposed to report its fourth quarter results tomorrow.