February 22, 2022
This year may become known as the Year of the Wedding. Primarily driven by postponed ceremonies previously slated for 2020 and 2021, wedding statistics provider Wedding Report projects that nearly 2.5 million weddings will happen this year – the highest total since 1984. Should a record number of couples jump the broom as expected, there is a slew of publicly traded companies that are poised to reap the rewards. Let’s take a look at a few of them.
First off, there are the e-retailers who benefit from wedding registries. According to a quarterly report produced by Baird, a global investment bank and financial services company, Amazon.com Inc. (Tii:AMZN) leads the pack with a 45% share of wedding registries listed. Bed Bath & Beyond Inc. (Tii:BBBY), the former market leader, fell to the No. 2 spot with an approximate 30% share. Target Corporation (Tii:TGT) rounds out the top 3 with an approximate 26% share. Home improvement retailers like Lowe’s Companies Inc. (Tii:LOW), The Home Depot Inc. (Tii:HD) also stand to benefit from newlyweds sprucing up their first home together.
Popping the question is typically preceded by the purchase of an engagement ring. While this is often a source of anxiety for the purchaser, it’s a welcome experience for the jewelry retailer. As the world’s largest retailer of diamond jewelry and the largest specialty jewelry retailer in the US, UK and Canada, Signet Jewelers Limited (Tii:SIG) is the company behind Kay Jewelers, Zales, Jared and several other established jewelry brands. With $7.4 billion in annual sales and 2,800 stores, Signet Jewelers is already shaking off the effects of the pandemic constraints. The jewelry retailer reported that fiscal 2022 third-quarter sales increased more than $235 million compared to the same period in 2021 and nearly $350 million when compared to 2020.
With so much leisure travel postponed since 2020, honeymoons to exotic locations are in particularly high demand. The Amalfi Coast of Italy tops Brides magazine’s top 50 honeymoon destinations, followed by Antigua & Barbuda. An uptick in honeymoon travel spells good news for travel agencies and online booking services such as those operated by American Express Co. (Tii:AXP); Expedia, Inc. (Tii:EXPE); and Booking Holdings Inc. (Tii:BKNG), the parent company of Booking.com, Priceline, agoda, Rentalcars.com and KAYAK. It also benefits large name-brand resort brands such as those owned by Wyndham Hotels & Resorts, Inc. (Tii:WH), Marriott International Inc. (Tii:MAR) and Hilton Worldwide Holdings Inc. (Tii:HLT).
Finally, there is the floral industry. According to MarketResearch.com, a leading provider of industry intelligence, the American flower industry generates over $5 billion in revenue each year. However, it’s a highly fragmented industry where the leading players control much of the market. With $2.12 billion in 2021 revenues, 1-800-Flowers.com (Tii:FLWS) is the industry leader in the space. Other beneficiaries of the wedding boom include 1-800-Flowers.com’s main rival, FTD, which investment firm Nexus Capital Management acquired in 2019, and a host of privately held e-commerce floral startups. Another, Teleflora, is a privately held floral wire service company that brokers orders to local florists for delivery.
Many of the other market segments that stand to benefit from increased wedding activity are overwhelmingly privately held – wedding planners, entertainment services such as DJs and bands, photographers, and event venues, to name a few. But with industry research provider IBISWorld expecting the wedding services industry to generate $57.9 billion in 2022, there will be a lot of love to go around.