Groupon’s Growing Pains

As Shayndi Rice, writing in the Wall Street Journal reports, “Groupon Inc. went public on the promise of fast growth and future profits. But on Wednesday, some of those promises remained elusive. In its first major test since an initial public offering in November, the Chicago-based daily deals site reported revenue more than doubled to $506.5 million in the fourth quarter, strengthened by new products, holiday sales and a rise in the rate it takes from merchants.” However, “The company has yet to prove to investors that its business of offering coupons to local business is profitable. Groupon reported a loss of $37 million in the quarter, as the company continues to spend extravagantly to support its rapid growth.”
This entry was posted in Online Retailing, Social Media and Retailing and tagged , , , , , . Bookmark the permalink.

1 Response to Groupon’s Growing Pains

  1. Pingback: Both Retailers and Shoppers Losing Interest in Daily Deal Sites | Retailing: From A to Z

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.