Foot Locker, Inc. (FL) is seeing a surge in app downloads after the June 2024 launch of their FLX rewards program. According to Goldman Sachs analyst Kate McShane, monthly app downloads reached 191,000 in July 2024, a significant jump from 121,000 in June 2024 and 167,000 in July 2023. While this figure remains below the monthly average of 218,000 since January 2019, it represents positive year-over-year growth, marking the first such increase since November 2022. McShane notes that Foot Locker views FLX as a long-term initiative, with 2024 focused on educating both customers and employees about the program. Later this year, the company will launch a redesigned app with enhanced features, including real-time updates and FLX integration. In early 2025, the app will introduce “Store Mode”, allowing customers to scan SKUs and check product availability. Investors interested in Foot Locker can consider the Tidal Trust II YieldMax Ultra Option Income Strategy ETF (ULTY) and the SPDR S&P Retail ETF (XRT).
Meanwhile, Costco Wholesale Corporation (COST) is implementing new security measures to prevent non-members from entering their stores. This month, Costco announced that they will be installing membership scanners near warehouse entrances. Visitors without a photo on their Costco card will be required to present another form of photo ID. Membership fees are a key revenue generator for Costco, contributing significantly to their profits. McShane points out that Costco highlighted in their third-quarter earnings call in May 2024 that the front door scanners they tested significantly improved register speed. McShane draws a parallel to Netflix’s recent move to monetize over 100 million households using the service without paying for a subscription by introducing paid sharing. Investors seeking exposure to Costco can consider the SPDR Select Sector Fund (XLP) and the Fidelity MSCI Consumer Staples Index ETF (FSTA).
As of Monday’s closing, COST shares are up 1.23% at $890.00, while FL shares are trading 1.22% higher at $33.11.
