- A millennial baby boom could be on the way, according to Bank of America analysts.
- They pointed to rising sales of pregnancy tests and higher birth rates.
- If this boom arrives, big-box chains such as Walmart would benefit alongside discount stores, they said.
A baby boom could be imminent, analysts say, and if it is, big-box stores such as Walmart and Target are likely to benefit.
In a note to clients this week, a group of Bank of America (BoA) analysts led by Robert Ohmes pointed to three data sources that they said indicated a baby boom. These included increased sales of pregnancy tests beginning in May 2020, rising birth rates, and a recent BoA survey in which more people said they were expecting or trying to have a baby over the next 12 months, compared to previous surveys.
These data points suggested “the start to the ‘Millennial Baby Boom,'” these analysts wrote.
The baby products market in the US was recently estimated at $US1.7 ($AU2) billion by market research firm Global Industry Analysts. The millennial generation, currently aged between 25 and 40, has become the driving consumer force in the economy – it is the largest generation and holds the most purchasing power.
If there were a baby boom, big-box stores such as Walmart and Target and warehouse clubs could capitalize, these analysts said. They didn’t mention Amazon, but the online giant would likely be a beneficiary too.
These retailers are popular destinations for shopping for baby basics such as diapers and food along with pricier items such as strollers.
Discount stores such as Dollar General and Dollar Tree could benefit too, the analysts said, especially as these stores are largely in suburban and rural areas where new parents may decide to live.