Pregnancy test sales are on the rise, which is good news for retailers nationwide and the country’s low birth rate.
With pregnancy tests flying off the shelves, this is a sign of the inevitable “millennial baby boom,” which is predicted to begin this year. According to Nielsen and Bank of America studies, tets sales have grown by an average of 13% year over year since June 2020.
If this trend continues, the birth rate reduction that occurred during the COVID-19 pandemic will be reversed. According to Bank of America data, live births grew by 3.3 percent in June 2021, the most significant speed of growth since 2013. In the company’s monthly survey, 11.3% of respondents revealed they had a child on the way or were actively trying to get pregnant.
Babies are big business in the U.S. According to Parenting.com, most average middle-income families will spend approximately $12,000 on child-related expenses in their baby’s first year. Most parents can expect to pay about $2,448 per year on baby formula, food, and diapers alone. Investopedia.com reports that parents should be prepared to go through up to 3,000 diapers in their child’s first year.
While baby news is always exciting for couples, big-box stores such as Walmart and Target are rejoicing as well. These stores and warehouse clubs, such as B.J.’s, are a one-stop-shop for all newborn needs such as strollers, diapers, clothing, baby electronics, walkers, and much more.
This incoming baby boom has already bailed out several retailers who struggled during 2020. The uptick in babies, marriages, and home purchases has increased sales at Best Buy, Home Depot, and Lowes.
