Zip Co (ASX:Z1P) $1.09 as at 13/09/2018
Zip Co (ASX:Z1P) announced today a partnership with Target Australia to offer Zip interest-free payments to its customers. Target has a national network of 303 stores and prior to WES combining Target with Kmart, Target was generating annual sales of >$3.4b in 2015 and 2016 – now it generates sales of around $1bn. If Z1P can generate just 5% of transactions, this would be meaningful. The other important consideration here is that Target is obviously part of a wider conglomerate (Wesfarmers) that includes bigger, and more meaningful retail operations. The group has already rolled Z1P (ASX:Z1P) out through OfficeWorks and given they’ve now decided to offer it through Target, it seems like a staged, progressive roll out could be underway.
WES obviously sees the benefit in offering the platform which is good sign of validation. Rollout is planned for end of October.
Zip Co (Z1P) Chart
Market Matters Take/Outlook on ASX:Z1P
A speculative growth stock which has failed to rally along with the wider ‘growth thematic’ in recent times, we like the stock around current levels.