Afterpay Touch Group Ltd (ASX: APT) has revealed a plan to win over US retail customers.
Afterpay Touch is the owner of the popular “buy now, pay later” app. As of mid 2019, Afterpay had over 4.3 million registered users worldwide, making it one of Australia’s true technology success stories.
What Has Afterpay Announced?
To try to win over more customers and retailers, the buy now pay later business has announced an ‘Afterpay Day’ for the US.
Afterpay revealed the two-day sale by “top” fashion & beauty brands and retailers that offer Afterpay. The company said the sale is just in time for back to school shopping.
Some of the US retailers that are going to be involved on 14 August and 15 August are: NARS Cosmetics, Schutz, APL, Steve Madden, RE/DONE, Tarte Cosmetics and others.
The idea is that hundreds of offers will be available over 48 hours and involve the more than 2 million active US customers who have already made purchases from retail partners using Afterpay.
Afterpay has only been live in the US market for a year but it has already partnered, or is in the process of onboarding, over 6,500 local retailers which represents over 10% of the online fashion and beauty industry in the US.
In the last Afterpay Day sale, Afterpay saw over 400 US retailers participate with an average increase in sales of around 100% over the two-day period. Apparently some retailers had sales volumes increase by over 300%.
Afterpay Co-Founder and US CEO Nick Molnar said: “After building tremendous momentum in the US over the last year, we are thrilled to partner with merchants to promote the second biannual Afterpay Day sale to our two million customers who have used the Afterpay service at one of our retail partners.”
Will This Help Afterpay?
The US market is a huge opportunity and will be a key reason about whether Afterpay can generate profitable growth or not. It’s initiatives like this that could help Afterpay get attention in the country.
However, Afterpay is not the type of business I want in my portfolio, as exciting as its potential may be, which is why I’d rather buy the growth shares revealed in the report below.
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