Stifel’s latest spending survey shows consumers are growing increasingly more willing to get a coronavirus vaccination and are spending their stimulus checks, significant 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 the coronavirus vaccine. Almost half of respondents (41%) earning less than $50,000 say they will.
Thirteen percent of respondents say they won’t get the vaccine, down from 18% in the previous three surveys.
More than two-thirds of respondents (68%) said they received a check from the latest round of government stimulus efforts, with 76% of those people saying they plan to spend it.
“Respondents claim to feel most comfortable with flying and indoor dining, our proxy for resuming a new normal, when they and others have been vaccinated,” Stifel analysts led by Mark Astrachan wrote in the survey report.
Fifty-three percent of respondents said they would feel more comfortable flying when they and others have been vaccinated. And 38% said they would be more comfortable eating indoors when vaccinations have been more widely distributed. Vacation planning is already on the rise, with 38% saying in late-January they have booked a trip or plan to.
“We view overall stimulus spending as favorable for most retailers and CPG [consumer packaged goods] companies, and we have seen an overall increase in spending in scanner data across 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 on consumer durable goods has accounted for an above-average share of total consumer spending during the pandemic due to the restrictions placed on other retail categories such as the restaurant industry,” explains a Morning Consult report .
Retailers selling essentials, home goods and other items tied to shoppers COVID-19-impacted lives have done well, along with those providing services that help with social distancing, such as curbside pickup and swift delivery.
Stifel upgraded Target Corp. /zigman2/quotes/207799045/composite TGT +0.93% to buy from hold as use of same-day services like Drive Up have increased. Stifel has a $225 price target on Target shares.
“Target consumers are ~40% more likely to be users of at least one same-day service compared to overall survey respondents,” the Stifel report said.
“This is notable as same-day has increasingly become a driver of Target comp growth, accounting for ~42% of digital sales in 2020, up from 30% in 2019 and 20% in 2018.”
Target’s most recent earnings showed a 102% increase in comparable digital sales, with 95% of sales for the holiday period filled in stores, when taking into account sales in stores, same-day services and ship-from-store.