this summer after CEO and founder Tobias Lütke acknowledged that the outstanding performance of e-commerce during the pandemic had caused him to misjudge the growth trajectory of online sales.As health restrictions were lifted, it became clear that a significant number of consumers still wanted to shop at physical stores. For example, e-commerce represented 4.
last week. It was a humbling moment for Shopify, which at one point during the pandemic had grown to become Canada’s largest company by market capitalization. The company’s stock price has since tumbled below its pre-pandemic value.Article content “Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust,” LütkeMartin Toner, an analyst at ATB Financial, said Shopify has been increasing its “offline” offerings to leverage its millions of e-commerce merchants. “They are leaning into their POS solution,” said Toner, referring to point-of-sale technology that allows retailers to process transactions. “
It sounds like it’s proving to be fairly successful and that’s helping boost growth a little bit here but not in a needle-moving way,” as the vast majority of Shopify’s revenue comes from e-commerce, he said.