Ahead of GameStop Corp.'s GME earnings print, foot traffic analytics firm Placer.ai released a report showing that the retailer's traffic is showing the narrowest year-over-year visit gap in months.
What Happened: GameStop's foot traffic for the week of March 8 was down just 3.9% year-over-year. By contrast, traffic was down 17.8% for the week of Dec. 28 and worsened to negative 26% for the week of Feb 8.
AMC Entertainment Holdings Inc AMC is much further behind its recovery, with traffic visits down 47.9% for the week of March 8, Placer.ai said. This marks the best weekly performance since the start of the new year and contrasts with the week of Dec. 28, when foot traffic was down 83.7%.
Related Link: GameStop CCO Resigns Ahead Of Q4 Earnings Report
Why It's Important: Between the two companies, AMC is the more exciting company to follow after its recent "monster steps in the right direction," according to Placer.ai.
The path toward a long-last and sustainable recovery is uncertain, and AMC is taking advantage of the early stages of the "increasingly open world," the report said.
What's Next: One key factor working in AMC's favor is the historical role movies play during times of hardship.
"In past periods of economic uncertainty, movie theatres have seen success, as they provide an affordable ‘escape,'" according to Placer.ai.
See also: How to Buy GameStop (GME) Stock
"If that concept can hold true in a post-COVID environment, the result could be very exciting."
Photo by Dwight Burdette/Wikimedia.
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