Sales of pregnancy tests are on the rise. That’s good news for retailers like Walmart and Target, Bank of America says

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  • According to a Bank of America note, a “millennial baby boom” could begin this year and sales of food and baby merchandise could be spurred.
  • Retail analyst Robby Ohms said the trend could benefit grocers like Kroger, big-box players like Walmart and Target, and membership clubs like Costco.
  • According to Nielsen data, one of the key indicators is the increased sales of pregnancy tests, which have increased significantly since June 2020.

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A millennium-fueled baby boom appears on its way and could boost sales for retailers including Target, Walmart and Costco, according to a note published Tuesday by Bank of America.

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New babies are being born. Pregnancy tests are selling at high rates. And more couples say they’re trying to have a baby, according to company research.

According to Equity Research analyst Robby Ohms, this could spell good news for grocers, big-box stores and warehouse clubs that sell diapers, strollers and other baby merchandise — or simply those located close to suburban homes where new parents may simply can. He predicted that the baby boom might start this year. Among the beneficiaries, he called out: Albertsons, Kroger, Dollar General and BJ’s Wholesale Club.

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According to the US Census Bureau, Millennials have overtaken Baby Boomers to become the largest generation in the country. According to the Pew Research Center, the group — made up of about 72.1 million people — between the ages of 25 and 40.

One of the key indicators of a potential “Millennial Baby Boom” is increased sales of pregnancy tests. According to Nielsen data and Bank of America research, sales of pregnancy tests have grown an average of 13% year over year since June 2020. Since June 2020, sales of pregnancy tests have grown by an average of 13% year-on-year. This compares with an average of 2% year-over-year from 2016 to 2019.

If this happens, it would reverse the decline in births during the pandemic. According to Bank of America research, live births increased by 3.3% in June 2021, the highest level of growth seen since 2013.

In the company’s monthly survey, 11.3% of respondents said they or their partner is expecting or trying to have a baby within the next 12-month period. That survey was done in October with nearly 1,000 people. This marked an all-time high since Bank of America began the survey in December 2020.

Some retailers have already credited millennials — and their growth in marriages, kids and home shopping — for driving more sales. Best Buy said this generation has become the largest group of customers. Home improvement retailers Home Depot and Lowe’s have said that generational trends — not just pandemic-induced nests — are powering the companies’ strong sales.

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