‘New Normal’ More Likely As Vaccine Acceptance And Stimulus Spending Increases: Stifel Data


Stifel’s latest spending survey shows that consumers are increasingly willing to get vaccinated against the coronavirus and are spending their stimulus checks, important factors in a resurgence of activities such as vacation planning and shopping. Nearly nine out of 10 Respondents (87%) with a household income of more than $ 100,000 have decided to get vaccinated against the coronavirus. Nearly half of those surveyed (41%) who earn less than $ 50,000 say they will.

Thirteen percent of those surveyed say they will not receive the vaccine, up from 18% in the three previous surveys. More than two-thirds of those surveyed (68%) said they received a check from the latest round of government stimulus efforts, and 76% of those people said they plan to spend it. Read: American Airlines warns employees that it could leave thousands of licenses by April. Also: American Airlines shares soar after fourth-quarter results, but they are “dislocating fundamentals,” says one analyst. “Respondents report being more comfortable with flying and eating indoors, our indicator for normal resuming, when they and others have been vaccinated,” Stifel analysts led by Mark Astrachan wrote in the survey report. Fifty-three percent of those surveyed said they would feel more comfortable flying when they and others had been vaccinated. And 38% said they would feel more comfortable eating indoors when vaccines have become more widely distributed. Vacation planning is already on the rise, with 38% saying in late January that they had booked a trip or planned to do so. “We view general stimulus spending as favorable for most retailers and CPG [consumer packaged goods] businesses, and we’ve seen an overall increase in spending on scanner data across all measured categories, ”Stifel said. Restaurants and the travel industry have been hit hard by COVID-19, while other areas, such as groceries, have done well. “[S]pending in consumer durables has represented an above-average share of total consumer spending during the pandemic due to restrictions imposed on other retail categories such as the restaurant industry, ”explains a report by Morning Consult. Retailers selling staples, household items, and other items tied to the lives of shoppers affected by COVID-19 have done well, along with those who provide services that help with social distancing, such as pickup at the curb and fast delivery. Stifel improved Target Corp. TGT, + 2.70% to buy from standby, as use of same-day services such as Drive Up has increased. Stifel has a target price of $ 225 for Target stock. “Target consumers are 40% more likely to be users of at least one service on the same day compared to those surveyed overall,” the Stifel report said. “This is remarkable as the same day has increasingly become a growth driver for Target Comp, accounting for ~ 42% of digital sales in 2020, up from 30% in 2019 and 20% in 2018.” See: Target’s holiday sales show how important stores are even as COVID-19 drives online business. Target’s most recent earnings showed a 102% increase in comparable digital sales, with 95% of sales for the Christmas period crowded stores, when sales are taken into account. in stores, same day services and store delivery. The pandemic has prompted increased use of same-day services, according to Adobe Inc. ADBE, + 0.33% Stifel analysts say that same-day services have a high recurrence rate due to their convenience. Target also has a number of other factors going for it. One of the characteristics of President Joseph Biden‘s $ 1.9 billion American Rescue Plan is an increase in the federal minimum wage to $ 15. Cowen analysts say Target and Costco Wholesale Corp. COST, + 1.31% are better positioned for that movement, since both have already begun to move wages in that direction. Walmart Inc. WMT, + 0.46% and others have also increased wages. “Cost inflation coupled with a reduced labor reserve has been a significant headwind in retail for several years,” wrote Cowen analyst Oliver Chen. See: The Film Industry in a Post-COVID-19 Vaccine World: An Investor’s Guide “Ultimately, as the job market recovers, we expect starting salaries at other retailers to continue to catch up with the leaders, lo that will put pressure on selling, general and administrative expenses in the short term and will have to be offset by savings elsewhere. With this in mind, we expect continued push for automation, including a greater emphasis on self-checkout, cleaning, inventory management, and product offloading. ”Target is also continuing to grow its private label. On Monday, the retailer announced that All in Motion has skyrocketed to $ 1 billion in the year after its launch. All in Motion sells sportswear for men, women and children. This is the 10th billion dollar brand for Target. Other private labels include the Cat & Jack children’s clothing brand and Casaluna, a bed and bath clothing label. Athleisure isn’t just for convenience. During the pandemic, Target says it also sold 21,000 pounds of hand weights and kettlebells – enough steel. for another Eiffel Tower and 7 million square feet of yoga mats, which could cover 122 soccer fields. my year. The S&P 500 SPX Index, + 0.74% has risen 17.7% over the last 12 months.