Goldman Sachs analyst Kate McShane provided an update on digital trends at Foot Locker, Inc.
Foot Locker: The analyst says that Goldman Sachs' analysis following the re-launch of the FLX rewards program in June 2024 shows that monthly app downloads in July 2024 reached 191K, up from 121K in June 2024 and 167K in July 2023 but below the monthly average of 218K since January 2019.
McShane writes that app downloads turned positive in June 2024 on Y/Y basis, with a +10% increase in both June and July 2024, marking the first positive inflection since November 2022.
As per the conversation with the management, the analyst says that the company views this as a multi-year initiative, with 2024 focused on educating both customers and employees about the program.
Foot Locker will launch a redesigned app later this year with real-time updates, enhanced functionality, and FLX integration. In early 2025, the app will introduce "Store Mode" for SKU scanning and checking product availability, adds the analyst.
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Costco Wholesale: This month, Costco announced it will introduce membership scanners near warehouse entrances to crack down on non-members slipping inside the store.
Visitors who do not have a photo on their Costco card must present another form of photo ID to enter the store. Membership fees, required to enter the store, are a key part of Costco's business model and comprise a good chunk of its profits.
The analyst says that in the third-quarter earnings call in May 2024, the company highlighted testing front door scanners that significantly improved register speed.
McShane writes that examining potential implications from Netflix, the company introduced paid sharing to monetize the over 100 million households using Netflix without directly paying for a subscription.
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Price Action: COST shares are up 1.23% at $890.00 and FL shares are trading higher by 1.22% at $33.11 at the last check Monday.
