Tags: back to school | stocks | best buy | wayfair | shopping

2 Stocks to Benefit From Back to School Shopping Amid Pandemic

2 Stocks to Benefit From Back to School Shopping Amid Pandemic

By    |   Friday, 21 August 2020 09:21 AM

This year’s back to school shopping season won’t resemble anything we have ever seen amid the seemingly endless coronavirus pandemic.

So what else is new with all that has happened since January 1, right?

While that may be bad news for some traditional retailers, some other companies stand to gain from the unexpected lifestyle changes.

Numerator data show that 78% of household expect to buy supplies specifically for the back-to-school season, down from 94% last year; more than 40% will shop primarily online, and nearly a third won’t bring their children into stores for the shopping they do, Barron’s recently explained.

The school shopping period typically extends from June through August.

Amid the coronavirus pandemic, parents will be buying more gadgets than clothes, strengthening trends that the pandemic has shaped, the financial publication explained.

“Consumer electronics is going to be the big category for virtual back to school,” says Jefferies analyst Janine Stichter. “With people working and children learning from home so often, they realize they have to upgrade their home offices.”

Best Buy (BBY) has already been a big beneficiary of this shift, amid the demand for electronics to furnish home offices and kitchen-table classrooms.

Stichter also highlights the company’s flexible payment options, like lease to own, for large ticket items.

That’s also good news for Wayfair (W), which will help fill the home furnishings demand amid the home school and living room office rush.

Meanwhile, CNN.com reports that the back-to-school shopping season is off to a slow start "as uncertainty swirls around if and when children will go back into classrooms," citing America's biggest retailers.

"But in the midst of the pandemic, school districts nationwide are struggling with setting an exact date to bring students safely back to classrooms. Some are going straight to a remote learning option at the beginning of the school year," CNN explained.

Walmart (WMT) and Target (TGT) said on earnings calls this week that families were delaying purchases as a result.

"There's something close to 56 million students in the K-12 bracket that are waiting to go back to school. And as of this week, it looks like well over 60% will start school remotely," Target CEO Brian Cornell, said in a call with analysts Wednesday.

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This year’s back to school shopping season won’t resemble anything we have ever seen amid the seemingly endless coronavirus pandemic.
back to school, stocks, best buy, wayfair, shopping
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2020-21-21
Friday, 21 August 2020 09:21 AM
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