canadas shopify inc on wednesday forecast a slowing pace of revenue growth in the first half of the year and said it was ramping up spending on a network of fulfillment centers sending its shares tumbling 18 the companys forecast indicated the ecommerce boom seen during the peak of the covid19 pandemic was cooling as more shoppers return to stores prompting retailers to shift their focus to brickandmortar operations from online in their quest to make the onlineshopping experience more rewarding during the pandemic small and medium retailers splurged on spiffy websites robust networks and faster delivery using software tools and payment services provided by companies such as shopify advt but as that growth softens shopify is trying to create an integrated ecommerce model that focuses on logistics and warehouses to support its main businesses we are shifting the network model really to larger capacity hubs and we want to operate more of them ourselves shopify president harley finkelstein said being able to offer fulfillment services to 90 of the us 2day affordable shipping that really is the goal shopify said it was estimating capital expenditure of 200 million in 2022 as it ramps up operations and was likely to spend about 1 billion on warehouse hubs in the following two years though shopifys investment spending forecast for 2022 was greater than expected its focus on fulfillment centers is a logical one da davidson analyst thomas forte said for the fourth quarter ended dec 31 revenue rose 41 to 138 billion compared with analysts estimates of 133 billion according to refinitiv data excluding items it earned 136 per share 9 cents above estimates shopify has lost its title of being canadas most valuable company by market capitalization after its shares shed more than a third of their value this year reuters published on feb 17 2022 at 0828 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etretail app get realtime updates save your favourite articles scan to download app shopify revenue growth ecommerce shopping international refinitiv homenewsshopify sees slowing revenue growth higher spending shares tank