There’s evidence that some Americans are spending their $1,200 stimulus checks on non-essentials including electronics, video games, sporting goods, and toys, according to major retailers.
Both Walmart and Target saw increased consumer demand for discretionary goods in mid-April as the stimulus payments from the $2.2-trillion CARES Act flowed into Americans’ bank accounts, the companies’ CEOs said this week… At Walmart and Target, shoppers bought more TVs, electronics, gaming equipment and apparel. Walmart also saw increased demand for adult-sized bikes.
The different phases of the pandemic have shaped shoppers’ choices. As stay-at-home orders were enacted across the country, “parents became teachers,” McMillon said on the company’s earnings call. “Adult bicycles started selling out, as parents started to join the kids. An overlapping trend then started emerging related to DIY and home-related activities.”
Sales took off in mid-April when many Americans began to receive their $1,200 stimulus checks. Within 10 days of receiving their stimulus checks, households spent around one quarter to one third of it, research shows… Before the checks were issued on April 15, there was “not as much demand” for discretionary goods at Walmart, said spokesman Randy Hargrove, adding that sales took off “towards the end of the quarter.” Target Corp. also experienced “a rapid increase in traffic and sales” for discretionary goods driven by the distribution of stimulus checks, CEO Brian Cornell said on the company’s Wednesday earnings call.
Apple also saw sales increase after stimulus payments went out, Cook said on the company’s April 30 earnings call. “A part of it is due to just our new products,” Cook said. But another part of it is also “due to the stimulus programs taking effect in April.”
MacDailyNews Take: Good news for Apple and for the overall economy!