This is the first full week of the 2024 NFL season, and longtime sponsor PepsiCo is launching an ad campaign inspired by the highly anticipated film Gladiator II. Hip hop artist Megan Thee Stallion is providing the soundtrack and starring in the spots as “Empress Megan,” who leads a band of “Gridiron Gladiators,” including NFL superstars Josh Allen, Derrick Henry, Justin Jefferson, and Travis Kelce.
Here’s what’s going on in retail this week:
In data: The Federal Reserve is releasing its latest consumer credit card report on September 9. The report provides a high-level view of Americans’ debt burden, including their total outstanding debt. The last report, which covered the month of June, found that total outstanding debt was up 2.1% YoY, but revolving debt such as credit cards was down 1.5%. Looking at all of Q2, a recent report from the Federal Reserve Bank of New York found that aggregate household debt balances increased just 0.6% from Q1 and aggregate delinquency rates were unchanged, but credit card balances were up 5.8% from last year, suggesting consumers are racking up their personal debt.
In earnings: Major retail earnings for Q2 are more or less in the can. But two stragglers, GameStop and Petco, are reporting on Tuesday. In Q2, the video game chain posted a 29% sales decline, despite continued enthusiasm for the meme stock among retail investors. The company last month also shuttered its 33-year-old magazine, Game Informer, laying off its entire staff. One bright spot for GameStop was the announcement that it would open stores dedicated to vintage games and consoles. Petco, meanwhile, beat Wall Street expectations in Q1, even as its revenue and comp sales continued to fall. The pet supply store is in the midst of a turnaround effort.
In promotions: Foot Locker is celebrating its 50th anniversary this week with the release of a limited-edition collection in partnership with Nike, Adidas, New Balance, Puma, and Converse. The celebration comes as the company moves ahead with its Lace Up Plan, which aims to develop its omnichannel capabilities, expand its product portfolio, and refresh its brick-and-mortar stores, among other changes. These efforts seemed to pay dividends in Q2, as comp sales grew for the first time in six quarters.