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Today's business and finance round up 3rd June 2021

Today's issue  👗Etsy + Depop = marketplace heaven

3rd June 2021

Good morning Meme stock favourite AMC is offering free popcorn and exclusive screenings to its amateur investor base. Shares in the US cinema chain went so wild on this announcement yesterday (more than doubling to a new high) that trading was suspended on the New York Stock Exchange.

Today's stories

  • Etsy + Depop = marketplace heaven

  • Bloomsbury has us hooked on books

Yesterday's market moves

FTSE 100 +0.4%  7,108 FTSE 250 +0.3% 22,933

Markets kept their upbeat mood with the FTSE 100 edging up a further 0.4% and the FTSE 250, up for a fifth straight day, by 0.3%, to another record level.As economies reopen and the global recovery gathers pace, investor continue to weigh whether recent data on higher in inflation will prove temporary or more enduring.

RETAILEtsy + Depop = marketplace heaven

What’s going onEtsy, the marketplace for crafty creatives, is buying Depop, the British second-hand fashion resale site, for $1.6 billion. Why is this importantFounded in London in 2011, Depop has grown quickly with revenue last year doubling to $70 million. It’s become known for its vintage and streetwear fashion and is especially popular with Gen Z (those born 1997 - 2015). On the other hand, Etsy tends to skew towards an older audience looking for handmade and one-of-a-kind items. Etsy is a public company and is valued at over $20 billion.It’s shares have almost doubled in the past year thanks to an e-commerce boom resulting from the pandemic.Some stats that bring to life why Depop was so attractive to Etsy:

  • Depop has a community of 30 million users across nearly 150 countries.

  • Approximately 90% of Depop's users are under the age of 26; and young consumers are adopting second-hand fashion faster than any other audience.

  • Depop is the 10th most visited shopping site among American Gen Z.

  • The second-hand market is projected to grow at 39% a year from 2019-2024 in the US, reaching $64 billion, and to grow to twice the size of fast fashion on a global basis.

TakeawayThe deal looks like a match made in marketplace heaven – both brands will be able to tap into each other’s audience as well as exchanging ideas on how to make buying and selling easier on their platforms.Also with more consumers concerned about sustainable fashion Etsy will be able to latch on to this trend with Depop.

PUBLISHINGBloomsbury has us hooked on books

People rediscovered the joy of reading during lockdown according to Harry Potter publisher Bloomsbury who reported record profits in the past year. Revenue was up 14% to £185m in the 12 months to the end of February.Bloomsbury performed significantly better than the wider UK publishing market, which recorded a 2% rise in sales during 2020. Even after almost 25 years since it was first published Harry Potter book sales rose 7%. This was in line with the popularity of fantasy fiction as people looked to escape the grim reality of the pandemic.Sales in bookshops have been strong since non-essential retail reopened in England in April. But the company says that this has not dampened online sales suggesting that the nation’s reading habit will continue post lockdown.The performance was so strong that the company announced that on top of their regular payment to shareholders they would also pay an extra dividend.The shares closed up 11% to £3.44, a 15 year high.In March 2020 we all vowed to use the extra time at home to do a number of things – learn a new language, do more exercise, read more books. While many of those grand ambitions faded away it looks like reading books is here to stay.

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