Retailers facing Afterpay hangover?
The AFR reported that retailers are facing a "buy now, pay later" hangover in 2019 as they cycle a sales boost underpinned by new forms of consumer credit. UBS analysts estimate Afterpay and Zip accounted for at least 15% of sales growth for listed discretionary retailers such as Super Retail Group, Premier Investments, Adairs, Kogan.com, Myer, Kathmandu and Wesfarmers in 2018. This sales boost will be difficult to cycle in 2019, unless thousands of new customers start using short-term credit to fund purchases they would not have otherwise have made. Afterpay and Zip have achieved high customer penetration in a relatively short period of time, with more than 10% of Australians estimated to be using their services. With regulatory scrutiny mounting, they dodged a bullet this month when a report from the ASIC said the National Credit Code would not be extended to the sector. Is it just a matter of time?