SECOO (SECO:US) revenue dropped in Q1 2020 by 15.6% versus previous year, with and inrcease of 12% of gross merchandise volume (GMV). This is similar to what happened to Farfetch (FTCH:US): The English marketplace did a +46% in GMV but EBITDA further in the red. While it may be easier to spot discount on Farfetch and indicate loss of marginality to excessive promotional activity, on Secoo the issue is more subtle to spot: Discounts and promotions are not as explicit, but prices to fluctuate a lot, offering incredible price arbitrage opportunities for the consumer, but at the expense of the retail margin.
Price fluctuations of single items can be followed and analyzed at a very granular level by analysts and quants in our alternative data observatory.
Dataset: Raw Price Stream
Retailer: Secoo
Distribution: Bloomberg EAP