While the headlines were hardly related to their offline performance, AMC Theatres and GameStop moved to the forefront with their latest stock market news. Yet, a significant question remaining is whether this renewed buzz and awareness could have waterfall effects on their offline performance potentially speeding up recovery rates.
AMC and GameStop Showing Promise
In recent weeks both brands have seen strength with the week beginning March 1st showing the narrowest year-over-year visit gap in months in both cases.
And while the reduction of COVID restrictions in key states and the end of severe weather conditions are likely a bigger cause for the surge, these brands are indeed seeing a boost. GameStop has returned to visit levels found in early January and appears to be on a strong recovery trajectory heading into the spring.
But the really exciting company to watch may be AMC. Looking at monthly visits year over year throughout the pandemic shows that the gap was never lower than 76.9% and was above 80% in November, December, and January. Yet, the weeks beginning March 1st and 8th saw visits down just 58.9% and 47.9% respectively – monster steps in the right direction.
Are there significant obstacles to the brand’s full recovery? Yes, absolutely.
But should the brand prove capable of leveraging this momentum in an increasingly ‘open’ world, the recovery could come much faster than expected. One key factor in that conversation will center around the continued interplay between the health and economic effects of COVID. In past periods of economic uncertainty, movie theatres have seen success, as they provide an affordable ‘escape’. If that concept can hold true in a post-COVID environment, the result could be very exciting.
Will the trend driving GameStop and AMC recoveries continue? Visit Placer.ai to find out.