Belk uses Afterpay to be able to buy now, pay later
The Buy now, pay later (BNPL) Afterpay platform and Belk department stores unveiled on Tuesday, December 7 a flexible payment program for online and in-store shoppers, giving them the option to pay for their gifts in four interest-free installments. .
“We always strive to provide customers with the best and most convenient options for their shopping experience, and they have truly responded to the buy now, pay later model, especially younger customers,” said Nir Patel, CEO of Belk, in the joint announcement.
Belk said he has seen a 50% increase in average order value since he started offering Afterpay to his customers. Most of those choosing the BNPL option are millennials or Gen Z shoppers, cohorts who are expected to achieve half of all retail spending by 2030, the company said.
“We know consumers use Afterpay for everything they want and need in their day-to-day lives, which is why it is so important to go to a retailer like Belk,” said Zahir Khoja, General Manager of Afterpay for North America. “Consumers can buy a variety of brands while avoiding extended debt, interest and hidden charges, and from the response so far, it’s clear that Afterpay customers see the value of Belk as as a one-stop shopping destination for holiday gifts and beyond. . “
Over 20 million North American customers have Afterpay accounts, giving them access to BNPL opportunities at approximately 100,000 retailers.
Related news: Belk Retail Store Completes Financial Restructuring
In February, Belk completed its financial restructuring, allowing sellers and owners to receive full payment as part of normal ongoing operations in physical stores and its online shopping platform.
As part of the restructuring, Belk raised $ 225 million in new capital, reduced its debt by about $ 450 million and extended the maturities of all term loans until July 2025, according to the announcement. .
Belk continues to improve its omnichannel functions and expand its product selection into new areas, such as the outdoors, wellness and home.