By: Leonard Robinson
Beauty and bargain retail establishments can expect a boom in revenue, says Wells Fargo, as customers ease back into physical store locations.
As states lift restrictions, vaccination rates continue to climb, and the weather becomes warmer, fashion-conscious customers interested in post-pandemic trends are set to return to beauty and fashion retail establishments.
Wells Fargo recently polled 1,000 U.S.-based customers to gain insights on post-pandemic shopping behaviors. When asked which products they were most likely to buy first, 40% of consumers selected “make-up,” followed by the 37% who chose “going-out apparel.”
Wells Fargo also expects to see a decline in the consumption of athleisure wear as consumers begin to return to workplaces outside of the home and safely gather again with friends and family. Roughly 30% of respondents said they expected to buy “athleisure wear,” with another approximately 30% responding similarly to “home goods.”
Beauty retailer Ulta has been anticipating this boom and expects their same-store sales to grow upward of 15% from 2020 levels, as noted by CNBC and analyst Ike Boruchow.
Buruchow also believes this is a positive sign for retailers like Ralph Lauren, Urban Outfitters, and Gap.
It seems that the prediction of JP Morgan analyst Matthew Boss might continue to hold weight. A year ago, on CNBC, Boss predicted that off-price retailers, such as Burlington’s, TJ Maxx, and Ross would remain attractive as customers coming out of the pandemic will still want to keep seeking value.
“I would say the No.1 theme right now across retail is survival,” Boss said to CNBC. “I think you’re going to have a clear bifurcation of the structural winners versus the multiyear market share donors coming out of this.”
