My current concern for Afterpay is their target market and consumer preferences. Here in Australia, Afterpay has signed up retail, Dental, Pharmacy, electronics, department stores etc. In the US and UK their main consumer products are focused around cosmetics and clothing, which worries me. While clothing sales might be down in Aus, other industries boomed. Rebel below saw a 500% increase due to the ban of going to the gym.
However, March website traffic which included Afterpay day is still higher than in November 2019, which included Black Friday sales and the beginning of Christmas retail. Maybe Afterpay's consistent signup of Merchants has been enough to grow sales through this downturn?
I am looking forward to their business update next week. I personally would like to see their plan going forward to adapt to Covid-19. If/how they have prioritised US and UK merchant signups to adapt to the change in consumer preferences. Although I'm sure they are already way ahead.
Rebel Sports
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March 2020 Website Visits
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