Alibaba Surpasses Walmart As Largest Retail Company In The World

Tyler Durden's picture

We may not have the exact numbers yet, but in a filing with the SEC on Tuesday, China's online retail behemoth Alibaba Group announced that it had "become the largest retail economy in the world" at the end of its fiscal year on March 31, "as measured by gross merchandise volume (GMV) on its China retail marketplaces." As IBT notes, the company has yet to declare its financial results for its last quarter and the complete fiscal year, but the announcement makes it clear that BABA surpassed the $482.1 billion in 2015 revenues reported by Wal-Mart Stores Inc. for its fiscal year ended Jan. 31. To wit:

Alibaba Group Holding Limited announced on April 5, 2016 that as of March 31, the end of its fiscal year 2016, it has become the largest retail economy in the world as measured by annual gross merchandise volume (GMV) on its China retail marketplaces. PricewaterhouseCoopers (PwC) has performed agreed upon procedures on data relevant to Alibaba Group’s GMV

As a reminder, two weeks prior to the SEC filing, Alibaba’s Executive Vice Chairman Joe Tsai announced in a blog post on March 21 that “with 10 days remaining in our fiscal year ending March 2016, Alibaba's China retail marketplace platforms surpassed RMB 3 trillion [yuan] in GMV. That is about [$]476 billion in U.S. dollars and, if the platforms we operate were a province, we would rank as the 6th largest provincial economy in China."

Inferring a full year's revenue from that number suggests that Alibaba closed the books with roughly $490 billion, or about $8 billion in sales more than America's flagship discount retailer.

According to another statement from Alibaba, its online trading volume had reached about 10 percent of the total retail volume in China and directly generated 15 million jobs as well.

"We used 13 years to demonstrate the power of a different business model compared with brick-and-mortar retailers,” the statement said, according to the China Daily.

For now WMT's market cap remains modestly bigger, even if BABA's LTM multiple of 19x is about 4 turns greater than Wal-mart's. As for the $275 billion Amazon, well that's a different story entirely...

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HectorCamachoTrump's picture
HectorCamachoTrump (not verified) Apr 6, 2016 8:26 AM

All chinese businesses can be counted on to be crime and fraud free.

Looney's picture

Walmart should merge with Alibaba and move to China (with all its stores).  ;-)

Looney

HopefulCynical's picture

Isn't AliBaba the place that lists a shit-ton of products that don't exist, and fakes sales/customers?

Skittles-shittin' unicorns for everybody!

Son of Loki's picture

Happened on Obama's watch. Most jobs created ever .... in China!

MillionDollarBonus_'s picture

China is becoming the undisputed king of manufacturing. It's quite exciting to see the global economy grow, and watch countries specialize in what they excel at. Here in America, we specialize in services. Our service economy dwarfs those of the rest of the world - we lead the way hands down in healthcare, education, food and restaurants. We're happy to offshore our crumbling manufacturing sector to China, but if they try to mess with our service sector, there's going to be hell to pay.

BTW, new article at the Accredited Times today, on why repealing Obamacare would be a disaster:

http://accredited-times.com/2016/04/06/dont-tread-on-my-obamacare-why-en...

zeronetwork's picture

The day is not far away when we will be wiping Chinese asses. That is a service industry, isn't it?

Tarzan's picture

So your excited to see China's slave labor replace America's manufacturers?

The Services industry is being pumped up with crap like the growing Financial industry, made up of people who produce nothing for society, only take, for alleged social benefits.  It's a cancer on society.

Like the convenience of paying Bankers to hold my "money" for me.  Or some investor to recommend the investment that pays him the biggest bonus.

Here's what wisegeek.com says about the industry

The service industry  is composed of businesses and individuals that market a wide variety of services to consumers and commercial enterprises. People employed in service industry jobs include workers in the travel industry and hospitality workers. Financial professionals, communications firm employees and various others who generate money without selling actual products all fall into this group as well.....

 

There has always been a services industry in travel, restaurants, etc, but the push to replace manufacturing has bloated this industry into a weak excuse for saying goodbye to the heart beat of America, it's manufacturing industry.

The services Industry is simply another bubble ready to pop!

Lore's picture

GOVERNMENT belongs as a subset of that 'service bubble,' producing nothing, merely adding many, many more layers of bureaucracy geared toward misallocation of dwindling capital, rationalized with lies, fear, and learned helplessness.  

stopthejunk1's picture

Obamacare is crony capitalism at its worst. It must be immediately repealed.

Your article reads like it was written by a sixth grader.

geno's picture

MillionDollarBonus_, I went out of my way to login to my account so that I could let you know that you're an idiot. I think it's self-explanatory. Either you're a government shill, or just a victim of our modern day indoctrination education system.

Friedrich not Salma's picture

Wait, what? MDB is a victim of our modern day indoctrination education system? Nah, too clever. Someone here might be the victim and not reading between the lines, but it ain't MDB. /wink

BigSkyBear's picture

They MUST be paying you a "MillionDdollarBonus"  to cut and paste this crap?

 

Get real

Balanced Integer's picture

More top-shelf trolling from the master of the artform, MDB!!

Tarzan's picture

seems the comparison is a little wack, Alibaba is a retail store?

Before I purchased my Slayer 12 Kayak I looked at Kayaks on Alibaba just to compare prices.  They were way cheaper, for an off brand fishing Kayak, but I would have to buy several.  In other words, they're mostly a wholesaler.

813kml's picture

It's a grotesque version of Costco.

b a n n e d's picture

You di it Wrong

alibaba site-> aliexpress.com

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) HectorCamachoTrump Apr 6, 2016 8:39 AM

This is just plain old financial misdirection.  Alibaba's net sales are somewhere near $15bn, gross sales includes all the stuff that other people sell on its marketplace.  It's no where near Walmart's size in reality, only in unicorn numbers fed to investors to get a quick pop in the share price.

Overfed's picture

You can't buy shit on Alibab. Just try it and see.

813kml's picture

On the contrary, there seems to be a large variety of shit in endless quantity.

localsavage's picture

If by endless you mean bulk.  Comparing Alibaba to WalMart is apples to oranges

Lore's picture

Alibaba has an end-user retail subsidiary - the Chinese equivalent of EBay: www.aliexpress.com

reader2010's picture

To save our biosphere, we need to burn both fuckers down.

pods's picture

Wait, so people actually buy shit from Alibaba?  

I have looked for stuff there but it sort of gives you that uneasy feeling you are about to get scammed.

The Merovingian's picture

Go with that feeling ....

Overfed's picture

Like I said a few posts ago, you can't buy shit. If you aren't buying their shit by the 40' container load, there is no on there even interested in talking to you.

Wild Theories's picture

buying container loads of goods over a retail site? you must be looking at the wholesale part of the site

the retail part of Alibaba is mostly domestic, those retail shopkeepers who are interested in selling internationally tend to be on ebay, you should be looking there instead if you want internet retail items from China.

Overfed's picture

You misunderstand. I was trying to buy retail/small wholesale quantities. When you can even get any kind of response at all from a "seller" on Alibaba, the first question is "how many containers (yaknow, shipping containers) would you like?" That's if you even get a response at all, which in my experience so far, is very rare.

bluskyes's picture

That's what Ali-express is for. Small lots.

reader2010's picture

It runs the Chinese version of Amazon and eBay in China.

runswithscissors's picture

Yes lets burn them both down...all the melting plastic will be good for our biosphere.

bada boom's picture

Well, thats because I hear walmart is turning their stores into fema detention centers. /sarc

Turin Turambar's picture

Enjoy it while it lasts.  I am starting a company in China this week and have been assured that within 2 months my company will be the largest in the world, and the Chinese government will furnish the numbers to prove it!  /sarc

debtor of last resort's picture

"created" 15 million jobs, and destroyed 50 million.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Apr 6, 2016 8:35 AM

But Alibaba is more of a Marketplace like eBay so its not their Gross Sales that matter but rather their Net Sales because that is what the company actually gets in its fee for others selling products on its marketplace.  Apples to Oranges analysis here.

Jason T's picture

Junk stores...both of em.  

 

new game's picture

recycling centers, bring back shit bought one year prior. dump in recycle bin and go buy new.

quality that pays...

buzzsaw99's picture

bloated market cap imo

Last of the Middle Class's picture

Don't buy shit from either one of the. Avoid them like the plague.

yogibear's picture

Maybe Alibaba can buy Wal-Mart in the future.

Wal-Mart is already packed with Chinese goods.

Rename it Wally-Baba.

Infield_Fly's picture
Infield_Fly (not verified) Apr 6, 2016 8:49 AM

FUCK YOU YELLEN!!!

CHoward's picture

Alibaba sells more colorful lawn gnomes than any other retailer.  The world is awash in lawn gnomes!! Ack.

 

BTW - I haven't been in an Alibaba - can't seem to find one store.