Quick Take — Temu: sales up, profits down

Revenues of PDD – the holding company that controls Temu – rose 7% to 103.98 billion yuan ($14.53 billion) during the quarter ended June, beating analysts’ estimate of 103.34 billion yuan, according to data compiled by LSEG.

Its operating profit fell 21%. Adjusted earnings per US depository share stood at 22.07 yuan, beating the estimate of 15.74 yuan.

Competition from Amazon is very strong. Temu is testing the sale of food – under an advertisement for the sale of Coca-Cola on its site – in Italy.

Quick Take — China falls in love with American-style wholesale shopping at Sam’s Club (Walmart)

despite trade tensions in the US Walmart’s warehouse chain reaches the tipping point to become one of the fastest growing foreign retailers in the country…

Although economic momentum has slowed in China, Sam’s Club’s revenue grew more than 40 per cent year-on-year in the first quarter, as consumers flocked to the stores for their low prices and bulk purchases…

Walmart’s sales in China rose 17 per cent to $20 billion in the last fiscal year. Eight of Sam’s Club shops are each expected to record half a billion dollars in sales this year, Walmart China CEO Christina Zhu told investors in April…

Half of Walmart’s sales in China take place online, compared to less than 20 per cent in the US. To fulfill e-commerce orders, China CEO Zhu described Sam’s Club locations as “mother clubs” that accumulate goods for networks of eight to 15 delivery hubs serving dense neighbourhoods within a three-mile radius…

About Sam’s Club discounters read here.