Second stimulus check triggered spending at retail stores

Consumers seem to be in a buying mood again this first month of the year, after cautiously spending the holiday season. Many of the people who are shopping have used their new $ 600 stimulus checks.

 

Retailers such as Lululemon, Crocs, Zumiez, Bed Bath & Beyond and others had a week of sales with results that exceed expectations. Executives from these companies, who are presenting at the ICR Consumer Conference 2021 this week, have expressed optimism about the trends so far in January.

“We believe there are a number of factors at play, including some benefits from the stimulus that is beginning to take hold,” said Janine Stichter, retail analyst at Jefferies. This positive trend in retail at this time has come as a shock to those in this niche, especially after the low sales in 2020.

 

Consumer confidence has weakened in recent months as citizens worry about their job prospects from the pandemic . The US economy suffered a setback after only 140,000 jobs were created in December, the Labor Department reported last week.

What was obtained in December left the authorities and experts very concerned, especially since 336,000 jobs were opened in November. The fall represented a negative impact for the first time since April 2020. Payrolls in the private initiative were reduced by 93,000 .

Faced with such a scenario, clothing and accessories retail brands are feeling a relief with this rise in sales in this first month of the year. Although Lululemon’s clothing is not considered essential as it is sporty and focused on those who practice yoga , January has been an oasis for them.

“We are pleased with the momentum during the period, our investments in Lululemon and MIRROR allowed us to connect with customers both physically and digitally. We remain confident of our opportunities in 2021, ”said Calvin McDonald, CEO of Lululemon.

Judging from Zumiez’s comments , young adult skateboard and surfwear inspired clothing seems to be in high demand to kick off the year. And that has excited Zumiez CEO Rick Brooks, who in a press release details upward sales trends inviting investors to feel positive about 2021. Zumiez reported that store sales over a 10-week period ending on January 9 they increased a solid 1.7%.

Bed Bath & Beyond home goods retailer had a mixed performance in its most recent quarter reported a week ago. Chief Executive Mark Tritton reported that January is off to a strong start . Tritton said it is possible to improve sales if consumers spend the money from stimulus checks on household items.