Weddings have always been a big deal throughout history, but the rise of social media, and Pinterest in particular, seems to have given new meaning to extravagance – at least in the United States. From a financial perspective, this trend is helping numerous companies across many different industries.
U.S. Weddings: Facts and Figures
If you don’t have much experience with weddings – or it’s been a while since you got married – you probably don’t realize just how lavish ceremonies, receptions, and honeymoons have become. For perspective, here are some statistics and data points on the U.S. wedding industry:
- The average engagement ring costs $6,163.
- During the engagement period, couples spend a total of $4 billion on furniture, $3 billion in housewares, and $400 million in tableware.
- Each year, there are an average of 2.4 million weddings performed – or roughly 44,230 per weekend.
- The average cost of a wedding is $35,329.
- The average wedding has 141 wedding guests, with each guest spending an average of $703 on the weekend. (This includes gifts, lodging, food, and travel.)
- $19 billion is spent annually on wedding gifts.
- A collective $72 billion is spent on weddings each year.
If you’ve been in a wedding recently, you know there’s a lot more to weddings than the actual ceremony. The rehearsal dinner has become a big deal. The bridesmaids and groomsmen often rent transportation for the entire weekend. Hotels block off rooms for guests at discounted prices. After parties often follow the main parties. This can only be described as extravagant.
In other words, the wedding industry is massive. It’s also growing by the year. While this is scary for those footing the bill, it’s exciting for businesses that operate in and around the industry. It could also prove to be lucrative for you, as an investor.
4 Stocks That Could Benefit
While there aren’t many traditional “wedding stocks,” per se, there are plenty of businesses that are directly and indirectly impacted by wedding trends. Keeping this in mind, here are a few stocks to keep an eye on this year:
1. Nordstrom
There are lots of retailers that benefit from wedding registries, but Nordstrom certainly ranks near the top. For the better part of a decade, they’ve had The Wedding Suite, a full-service wedding boutique within select Nordstrom stores. So, on top of wedding registries, they’re also selling affordable wedding dresses and wedding party attire.
As a side note, Nordstrom recently acquired two retail technology companies that are expected to help improve its shopping experience and cater to personalization.
2. Bed Bath & Beyond
When it comes to setting up a wedding registry, almost every couple adds a few items to a Bed Bath & Beyond registry. Not only is there a diverse selection of products, but stores are available around the country.
While Bed Bath & Beyond stock has been on a five-year decline, things are looking up. As the parent company of Buy Buy Baby, look for steady gains as Toys R Us continues to close up stores in anticipation of total shutdown.
3. XO Group
The XO Group is one of the few publicly traded companies that is directly involved in the wedding industry. Started in the mid-90s, this internet company runs several brands, with The Knot being it’s most well-known and lucrative. After a huge selloff during 2007 to 2009, the stock has rebounded nicely with healthy gains over the past five years. Look for even more in the coming months.
4. Zale Corporation
Wedding rings aren’t getting any cheaper or more conservative. Many brides know what they want from the time they’re old enough to know what a wedding ring is. This benefits jewelers like Zale Corporation, which has a massive online presence and continues to excel with creative marketing campaigns and well-timed promotions (especially during wedding season).
Consider Timing
While you don’t want to move your entire portfolio around in order to account for seasonality, being prepared for something like wedding season can help you identify some potentially lucrative short-term investments earlier than most people would. Be aware of these annual trends and look for opportunities to diversify.
Disclosure: I do not own any of the stocks mentioned in this article.
