Shoppers line up outdoors of Ulta Beauty earlier than the 6am opening on Black Friday.
Aimee Dilger | LightRocket | Getty Images
Beauty and bargain retail are poised to be the biggest winners in 2021 as customers return to brick-and-mortar shops and get snug socializing once more, in response to a brand new survey by one funding agency.
Wells Fargo’s retail staff just lately polled 1,000 customers in the United States to get a greater sense of their post-pandemic purchasing behaviors. When requested which merchandise they’re more than likely to purchase first, post-pandemic, respondents most often chosen make-up, at 40%. That even surpassed “going-out apparel,” which was chosen by 37%.
One of the biggest beneficiaries of this anticipated rebound to magnificence could be Ulta, analyst Ike Boruchow stated.
Ulta Beauty shares are up about 70% over the previous 12 months. The firm has a market cap of $16.96 billion.
Ulta has stated it anticipates same-store gross sales to develop in a spread of 15% to 17% this yr from 2020 ranges. But it has cautioned that its efficiency will proceed to be impacted as long as social-distancing measures stay in place.
Wells Fargo expects the consumption charges of sweat-wicking athleisure and dwelling items to sluggish this yr. Both of those classes have outperformed over the previous 12 months, with stuck-at-home customers stocking up on athletic garb for his or her health routines and redecorating their bedrooms and backyards with new furnishings and equipment.
In Wells’ survey, solely 31% stated they anticipated to purchase athleisure in the close to time period and 33% stated the identical about dwelling items.
According to Boruchow, different winners in 2021 could be the attire retailers Urban Outfitters, Ralph Lauren and Gap, together with off-price companies Burlington Stores, Ross Stores and TJ Maxx proprietor TJX.
The off-price sector was on a tear previous to the pandemic. But its give attention to bargain searching in shops has hampered the efficiency throughout the well being disaster as many Americans stayed dwelling. These corporations have much less of a presence on-line, too.
When extra buyers return to shops to refresh their wardrobes, analysts like Boruchow anticipate that Burlington, Ross and TJX stand to win again market share in attire.
—CNBC’s Michael Bloom contributed to this reporting.