Pop superstar Taylor Swift’s recent ‘Eras’ tour is having both positive and negative impacts on several public companies this summer.
Swift’s massively popular concerts have driven strong sales growth for merchandise, vinyl records, hotel rooms, and credit cards. However, some retailers say the tour has contributed to weaker demand in other areas.
The ‘Eras’ tour has fueled a huge boom in merchandise sales for companies involved. For example, Target’s chief growth officer Christina Hennington said the retail chain “proactively secured an exclusive vinyl offering that Swifties bought in droves.”
E-commerce platform Shopify also saw “unprecedented volume sales and site visitors” when Swift’s tour merch shop launched in July, according to president Harvey Finkelstein. He said Shopify was “ready for it.”
Universal Music, which distributes Swift’s music, enjoyed a 12% increase in merchandising revenue last quarter. The company’s CFO Boyd Muir said this growth came “with a strong performance from Taylor Swift.”
Hotel operators have also benefited from the concerts. Leslie Hale, CEO of RLJ Lodging Trust, said the return of entertainment events like Swift’s tour helped drive bookings. She said about a third of the company’s hotels got a boost during the latest quarter.
The buzz around the tour is even moving the needle for credit card companies. The CEO of Synchrony Financial, Brian Doubles, gave Swift a shoutout during a recent earnings call.
“We have a strong partnership with Alliance Data to issue co-brand cards like the Taylor Swift card,” Doubles said. “We’ve had good growth in both accounts and sales volume.”
Swift is also driving strong vinyl album sales. After she released her ‘Midnights’ album last fall, vinyl sales hit their highest weekly total since 1991. Swift broke her own record for the biggest vinyl sales week.
Target’s Hennington said the chain has benefited from securing an exclusive vinyl version of ‘Midnights’. She said Swift fans “can’t get enough” and are buying her records “in droves.”
However, not every company is enjoying a lift from Swift’s tour. Furniture retailer RH said the concerts created “distractions” that drove lower demand this summer.
RH’s CEO Gary Friedman said the tour “didn’t help” as consumers focused more on other forms of entertainment. He also cited high inflation as dampening furniture spending.
Apparel chain American Eagle Outfitters also called out the Swift tour as one factor that hurt clothing sales last quarter. The company said fewer back-to-school purchases partially offset the tour’s impacts.
Overall, Taylor Swift’s record-breaking tour is driving big benefits for companies involved in merchandise, music sales, hotels, and financial services. But some retailers say the concerts have contributed to weaker consumer demand in categories like furniture and apparel. As Swift continues touring into 2023, her massive popularity will likely keep swaying the fortunes of various corporations.Copy
