A millennial-fueled baby boom is appearing on its way and could boost sales at retailers including Target, Walmart and Costco, according to a note released Tuesday by Bank of America.
New baby births are on the rise. Pregnancy tests sell for a higher rate. And more and more couples are saying they are trying to have a baby, according to the company’s research.
This could be good news for grocers, big box stores, and warehouse clubs that sell diapers, strollers, and other baby items – or are simply located closer to suburban homes where new parents can. settle down, according to equity research analyst Robby Ohmes. He predicted the baby boom could start this year. Among the beneficiaries he called: Albertsons, Kroger, Dollar General and BJ’s Wholesale Club.
Millennials have overtaken the baby boomers to become the nation’s largest generation, according to the US Census Bureau. The group – made up of around 72.1 million people – are between 25 and 40 years old, according to the Pew Research Center.
One of the main indicators of the potential “millennial baby boom” is the increase in sales of pregnancy tests. Sales of pregnancy tests have increased an average of 13% year on year since June 2020, according to Nielsen data and Bank of America research. Since June 2020, sales of pregnancy tests have increased an average of 13% year-over-year. This compares to an average of 2% year-over-year from 2016 to 2019.
If that happens, it would reverse the decline in births during the pandemic. Live births rose 3.3% in June 2021, the highest level of growth since 2013, according to a Bank of America study.
In a monthly company survey, 11.3% of those polled said they or their partner was expecting or trying to have a baby in the next 12 months. This survey was conducted in October among around 1,000 people. This is a record high since Bank of America launched the investigation in December 2020.
Some retailers have already credited Millennials – and their rise in weddings, babies, and house purchases – for driving more sales. Best Buy said the generation has become its largest cohort of customers. Home improvement retailers Home Depot and Lowe’s have said generational trends – not just pandemic-induced nesting – are fueling strong business sales.
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