Beauty and bargain retail are set to be the biggest gainers in the United States post-pandemic, according to results of a survey conducted by Wells Fargo.
- A poll of 1,000 consumers found that respondents most favored makeup as the first purchase post-pandemic, with 40%. This surpassed “going-out” apparel with 37%.
- Analysts predict Ulta to be among the biggest beneficiaries, with shares up 70% over the past year. The firm has a market capitalization of $16.96 billion.
- Other likely winners are Urban Outfitters, Ralph Lauren, Gap, Burlington Stores, Ross Stores, and TJX.
- The survey found that 33% of respondents said they would buy home goods, and 31% would buy athleisure. Wells Fargo expects the consumption of both to slow in 2021, after outperforming over the past 12 months.
- Focus on bargain hunting in stores has hampered the performance of the off-price sector, amid the lockdowns implemented to curb the spread of COVID-19. Such companies also have less presence online.