Goldman Sachs Exchanges Why Investors Are Shopping for Consumer Retail
Nov 2, 2021
In this engaging conversation, Jennifer Davis and Vishaal Rana from Goldman Sachs' Consumer Retail Group discuss the booming IPO market for everyday consumer goods. They highlight a record $14 billion issuance driven by rising consumer demand and wage growth. The duo also explores emerging trends in sectors like apparel and beauty, the shift to direct listings, and how technology is reshaping shopping experiences. Additionally, they emphasize adapting to megatrends such as digitization and health consciousness for future growth in retail.
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Booming IPO Market
- The 2021 consumer retail IPO market has been exceptionally strong, with $14B in issuance, 3.5 times higher than the previous year.
- Strong investor enthusiasm, driven by pent-up demand and high savings rates, fuels this surge.
Broad Sector Participation
- The IPO surge spans diverse consumer retail sectors, including apparel, beauty, home goods, and food/beverage.
- This broad interest reflects widespread investor confidence in the consumer market's resilience.
Direct Listings Emerge
- Direct listings offer companies, like Warby Parker, an alternative to traditional IPOs.
- This approach provides immediate market-based pricing and greater flexibility for shareholders, especially when primary capital isn't a primary need.