Most retailers saw improved consumer traffic in stores over the past year, according to a report by Placer.ai. Ethan Chernofsky, Placer.ai marketing exec, said part of the rebound in foot traffic is because of diverse tenant mix that offers experiences and shopping.
He said malls moved away from being predominantly apparel-focused and now include dining, entertainment and wellness services.
“The pandemic’s lasting influence has also changed how we shop with more people visiting multiple grocery stores for the best deals and quality, while small-format stores are helping retailers meet local needs, Chernofsky said.
Placer.ai found that cross-shopping behavior is driven by consumers seeking quality, value and specialty items. The behavior has seen discounters, dollar stores and traditional retailers splitting the market share among consumers focused on stretching their budgets.
Aldi led the pack with improved traffic counts. Placer.ai found Aldi saw store visits jump 25.5% between April 2023 through June 2024. Deep discounter Ollie’s Bargain Outlet garnered 18.2% more store visits in the year, followed by Trader Joe’s with a 16.2% increase.
Placer.ai found eyeglass retailer Warby Parker, which continues to add brick-and-mortar stores to its predominantly virtual shopping platform, grew store visits by 14.3% over the survey period. Dollar General visits rose 13.2%, Food Lion Grocery visits increased 12.1% and Walmart Neighborhood Market visits grew by 11.2%. Texas grocery chain H-E-B had a 10.5% uptick in in-store visits.
Outside of traditional retail, several other brands saw improved year-over-year visits across their chain. Crunch Fitness grew its visits by 17.7% from April 2023 through June 2024. Total Wine & More grew visits by 14.1%, while Chipotle Mexican Grill saw visits rise 13.7% over the period.
Placer.ai found foot traffic in brick-and-mortar traffic in the top 100 national retail and dining locations increased 6.8% in June, its highest level over the past 12 months. In 2024, store traffic climbed back from a flat reading in January to a 6.4% growth in February. Retail store traffic growth dipped to 1.7% in April before climbing back to 5.3% in May.
Walmart reported its average ticket was flat in the first quarter ending May 1, but the number of transactions increased 3.8% from the prior year. The retail giant credited an increased number of price rollbacks for its better-than-expected results. The retailer also benefited from 22% growth in its e-commerce sales which bolstered the transaction comp by 2.8%. Walmart will report its fiscal second-quarter results in mid-August.
Dollar Tree reported store traffic grew 2.8% in its first quarter, offset by a 1.1% dip in average tickets. Competitor Dollar General comp sales growth of 2.4% with traffic slightly higher and average tickets a bit lower.
While online sales continue to grow for many retailers, the importance of brick-and-mortar has not waned. A new report from Walmart and Morning Consult indicates consumers want to shop multiple formats and they expect a great experience regardless of the shopping mode.
The study suggests that as consumers become more comfortable with tech-enabled choices, they will become more willing to shop using all options. Early tech adopters and Gen Z respondents are already shopping relatively equally across all options for general merchandise.
“Advancements in technologies like augmented reality and artificial intelligence are transforming how consumers engage with retailers,” said Richard Kowalski, senior director, of business intelligence at Consumer Technology Association, who reviewed the report before publication.
He said consumers have high expectations for how technology will improve their shopping experiences. Retailers that use technology to provide consumers with more personalized shopping journeys that seamlessly integrate into their lifestyles are the ones who will win.
