The Afterpay Touch Group Ltd (ASX: APT) share price has opened 7% higher this morning on news the company released to the ASX before market open that its 'Afterpay Day' biannual two-day sale will take place across August 14 and 15.
Here's some of what Afterpay had to say:
Just in time for back-to-school shopping, participating Afterpay partners will celebrate Afterpay Day with promotions and discounts across retailers such as NARS Cosmetics, Schutz, APL, Steve Madden, RE/DONE, Tarte Cosmetics, amongst others, from August 14 to 15. Hundreds of offers will be available over 48 hours to celebrate the 2 million+ U.S. active customers who have made purchases from retail partners using the Afterpay product.
Launched in the U.S. market just over a year ago, Afterpay is now partnering with, or onboarding, over 6,500 local retailers, which represent more than 10% of the online fashion and beauty industry in the U.S.
Investors have reacted in an understandable way as the last 'Afterpay Day' sales were a huge success for the company, with CEO Nick Molnar stating that "during the last Afterpay Day sale in March 2019, the business saw over 400 US retail partners participate with an average increase in sales volume of more than 110% over a two-day period, with some retailers generating a 300%+ increase in sales volume."
Afterpay is the largest 'buy-now, pay-later' company on the ASX. It allows customers to receive products immediately and pay for the purchase over four instalments. The company aggressively targets 'millenials', who it believes prefer buy-now, pay-later services like Afterpay over traditional credit providers. Afterpay shares have pulled back after opening but are still 5.6% higher, trading for $24.06 at the time of writing.
