MAY 14, 2021 | Written by: Robyn Swihart, Owner

Athleisure Apparel:

Apparel sales in general plummeted 34% during the latter half of 2020, athleisure sales held strong. Work from home and quarantine policies spurred demand for comfortable, functional clothing.   Consumers also sought technical gear for healthy lifestyle and wellness activities.  Lululemon delivered a 22% revenue increase in Q320, while Gap’s athleisure label Athleta saw sales increase 6%.  Analysts predict the gravitation toward activewear will endure post-pandemic. 

Sporting and Recreational Goods:

During fiscal 2020 Dick’s Sporting Goods posted a 9.9% sales increase.  "We've never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organization we not only survived — we thrived, delivering record-setting sales and earnings," said Ed Stack, executive chairman and chief merchandising officer.  Leisure bike sales have climbed 121%, and buyer beware:  the spike in consumer demand, coupled with inventory supply chain issues are leading to long lead times and peak pricing. Coming out of the pandemic, sporting goods retailers “expect a tailwind” of sales, as youth sports resume. 

Wholesale Stores:

As consumers sought to consolidate shopping trips, and the pandemic precipitated a trend toward at-home food consumption, membership clubs like Sam’s Club and Costco reported surging same-stores sales growth.  Demand for grocery and consumable products drove traffic, but warehouses also experienced sales growth in general merchandise, apparel, electronics, furniture, sporting goods, and pharmacy.  On a recent earnings call, BJ's Wholesale Club CEO Lee Delaney said, “We have a radically different company than we had just six short months ago. In many areas of the company, we are now years ahead of how we thought our transformation would evolve, and we are actively looking for ways to increase the pace of progress.

Furniture and Home Improvement Stores:

In 2020, the at-home experience was paramount.  The prolonged period at home heightened demand for furnishings with upgraded comfort and style.  Additionally, employees adapted or upgraded their home work spaces.  The pandemic also benefited hardware stores, as consumers tackled lists of DIY projects to avoid the exposure of bringing contractors into their homes. Home Depot COO, Ted Decker, said that after completing projects, many DIY customers were emboldened and motivated to take on additional and more complex projects with confidence. Lowe’s saw net sales spike 28%, while Ace Hardware’s sales were up 39.2%. 

Fine Jewelry:

According to Mastercard, March jewelry sales sky-rocketed by 106% year on year during the month. The jewelry segment benefited as consumers unable to spend money on travel or experiences used those discretionary funds to purchase symbolic and enduring gifts.  A secondary contributing factor was that quarantine accelerated courting periods, and many couples became engaged.  Engagement rings sales led the way, and couples holding scaled back ceremonies splurged on upgraded diamonds.

Disclaimer:  This article should not be seen as legal advice.  Please consult your attorney before you rely on this information.