Sales are Beating Pre-COVID times. Don’t Get Left Behind!
Sales plummeted in 2020 across the retail landscape. Many are asking when will sales fully recover to pre-Covid times? What if we told you, it already has?
We’re sure many of you have heard of the LVMH group, a conglomerate that owns 75 brands like Louis Vuitton, Christian Dior, Hennessey, Tiffany & Co and Tag Heuer to name a few. Well, LVMH just posted record revenues of $34 billion for the first half of 2021. That beat the same period in 2020 by a massive 56% and more importantly, is a 14% increase over pre-Covid 2019. In fact, demand is so high for Louis Vuitton products, LVMH said there are now waiting lists.
Ok, some might say LVMH caters to a very specific demographic, so let’s look at Foot Locker. It reported a net income of $430 million in Q2 of 2021 compared to $45 million in 2020 and $60 million in 2019 for the same period! Total sales so far have also increased over 2019 by 28.2%!
The recovery is also in the rearview for restaurants. The Cheesecake Factory earned $769 million in Q2 2021. That beat 2019 by 7.8% and off-premise average weekly sales have doubled. And just to hammer this home, department store giant Macy’s, which sells just about everything, completed its recovery in 2021 with Q2 sales beating 2019 by 5.9%.
Why buy now, pay later will help you capitalize on this recovery and beyond
Though the rebound is in full swing, spending habits have changed drastically. People are more conscious of how they spend and many are still recovering from the financial strain caused by the pandemic.
Amazon announced at the end of August 2021 it’s adding buy now, pay later (BNPL) because when customers can spread purchases as low as $50 into four-equal, interest-free payments, it gives them more buying power. If Amazon has just moved on this, the time is indeed right now!
BNPL providers have already taken $8 to $10 billion in annual revenue from banks in the last 24 months and here’s why BNPL will help you ride this recovery trend to more profits:
- People are spending more than ever and 60% of shoppers say they are likely to use BNPL in the next six to 12 months.
- In the pandemic, 30% of Zip customers said they would spend more thanks BNPL and we expect that to grow.
- 30% of shoppers who use BNPL say they would’ve abandoned their purchase if they hadn’t had access to this financing option.
- 48% of shoppers say BNPL gives them more spending power – up to 20% more than they would spend with a credit card alone.
As a true alternative to 25% credit card interest rates, BNPL is here to stay. And like LVMH, Foot Locker, Cheesecake Factory and Macy’s 2021 earnings, the future is very bullish.
Learn more about BNPL now!