Buyers are placed outside Ulta Beauty before 6am on Black Friday.
Aimee Dilger | LightRocket | Getty Images
According to a new survey by an investment firm, in 2021 beauty and beauty retail will be the biggest winner in 2021 as consumers return to brick-and-mortar stores and become comfortable socializing.
The Wells Fargo retail team recently surveyed 1,000 consumers in the United States to better understand their post-pandemic buying behaviors. When asked which products are most likely to buy the first most frequently selected makeup, post-pandemic, by 40%. She even surpassed the “exit clothes,” which were chosen by 37%.
One of the biggest beneficiaries of this anticipated bounce for beauty could be Ulta, said analyst Ike Boruchow.
Shares of Ulta Beauty have increased by about 70% in the last twelve months. The company has a market cap of $ 16.96 million.
Ulta has said he expects in-store sales to grow by between 15% and 17% this year from 2020 levels. But he has warned that his performance will continue to impact as long as social distancing measures are maintained.
Wells Fargo expects the consumption rates of sweat-absorbing household and household products to decline this year. Both categories have performed better over the past twelve months, with consumers trapped at home stocking up on sportswear for their fitness routine and have redecorated their bedrooms and gardens with new furniture and accessories.
In the Wells survey, only 31% said they expected to buy leisure games in the short term and 33% said the same about household items.
According to Boruchow, other winners in 2021 could be apparel retailers Urban Outfitters, Ralph Lauren and Gap, along with off-price companies Burlington Stores, Ross Stores and TJ Maxx owner TJX.
Prior to the pandemic, the out-of-price sector was in poor condition. But his focus on in-store business hunting has hampered performance during the health crisis, as many Americans stayed home. These companies also have less online presence.
As more shoppers return to stores to cool their closets, analysts like Boruchow expect Burlington, Ross and TJX to regain their garment market share.
—CNBC Michael Bloom has contributed to this report.