Millions of students are headed back to in-person learning.
With it, back to school shopping season could create a significant catalyst for many of the top retailers. In fact, according to the National Retail Federation (NRF), “Consumers plan to spend record amounts for both school and college supplies as families and students plan to return to in-person classrooms this fall, according to the annual survey.”
Families with kids in elementary through high school are expected to spend nearly $850 on average on school gear. That’s about $59 more than last year. Total back to school spending is expected to balloon to $37.1 billion, up from $33.9 billion.
In addition, according to NRF, “College students and their families plan to spend an average of $1,200.32 on college or university items, an increase of $141 over last year. Over half ($80) of this increase is due to increased spending on electronics and dorm furnishings. Total back-to-college spending is expected to reach a record $71 billion, up from $67.7 billion in 2020.”
Some of the top retailers to consider are:
Target. Corporation (TGT)
Target Corporation (TGT), where Chairman and CEO Brian Cornell just said, “Back-to-school and back-to-college are off to really strong starts,” as quoted by Yahoo Finance. “Backpacks and lunch boxes are selling and school uniforms are on the top of that list. We’re seeing a really strong start, and that’s continued as we move into the third quarter. I think it’s going to be a really robust back to school and back to college season.”
The company just posted net sales of $25.16 billion, as compared to expectations for $24.51 billion. Comparable sales were up to 8.9%, as compared to estimates for 8.2%. The company added, that, “second quarter comparable sales rose 8.9%, fueled by a 12.7% increase in the number of transactions.”
Kohl’s (KSS)
While we wait for Kohl’s (KSS) next earnings report, we’ve seen the company has had a great start to the year.
“We are very pleased with our strong start to 2021 with both sales and earnings materially exceeding expectations. Along with a favorable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers. We saw momentum build through the quarter, especially in our stores where we continue to elevate the experience. We are eagerly preparing for the upcoming launch of our Sephora partnership as well as the introduction of several new exciting brands this fall,” said Michelle Gass, Kohl’s chief executive officer. “We are positioned to capitalize on growth opportunities during the balance of 2021 and remain firmly on track to achieving our 2023 strategic goals. Based on our first quarter results, we are raising our full year 2021 guidance.”
Bed Bath & Beyond (BBBY)
BBBY recently reported strong first quarter results.
Mark Tritton, Bed Bath & Beyond’s President and CEO said, “We have started the year in a position of strength and are clearly on track to accomplish our goals. 2021 marks the first year of our three-year transformation following the groundwork we laid in 2020 – a year of historic and necessary change for this organization against the backdrop of unprecedented challenges due to COVID-19. For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations. These results demonstrate continued momentum with our strategies as we progress towards the goals we outlined at year-end and at our Investor Day.”
Of course, Amazon.com (AMZN) is likely to be a major beneficiary as well. In fact, according to eMarketer, the company could capture up to 85% of US back to school digital shopping.
The post Back to School 2021: The Top Stocks to Consider Now appeared first on Morningology.
