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How did off-price leaders T.J. Maxx, Marshalls (both owned by TJX Companies), Burlington, and Ross perform in last year? And how is 2024 shaping up for the category? We dove into the foot traffic data to find out.
Off-price apparel retailers typically employ a straightforward method: sell excess or off-season merchandise that would otherwise remain unsold at a discount, benefiting both shoppers and manufacturers.
This retail model has consistently performed well, as evidenced by the consistent growth in visits to T.J. Maxx, Marshalls, Ross, and Burlington over the past few years. And despite the overall sluggishness experienced by much of the apparel retail category in 2023, visits to these stores continued to increase year-over-year (YoY) in every quarter analyzed.
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January 2024 YoY visit growth slowed slightly – perhaps due to Q1 2023’s exceptionally strong performance. But despite the difficult comparison, foot traffic for most chains remained close to 2023 levels while YoY January visits to Ross increased 5.5%, highlighting the resilience of the off-price sector.
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The demographic and psychographic makeup of a chain’s trade area – which shows the types of visitors who frequent the chain – can be determined by looking at the chain’s potential or captured market. A chain’s potential market is calculated by weighing the Census Block Groups (CBGs) feeding visits to the chain according to the size of the CBG, while the captured market weighs each CBG according to the relative number of visits to the chain originating from that CBG.
Using these tools to analyze the median household income (HHI) in the trade areas of the four chains reveals a divergence between the two TJX-owned chains T.J. Maxx and Marshalls, on one side, and Ross Dress for Less and Burlington, on the other. The median HHI in T.J. Maxx and Marshalls’ potential market is higher than the potential median HHI for Ross and Burlington – and the two TJX brands’ captured market median HHI is even higher. Meanwhile, the median HHI in Ross and Burlington’s captured market is lower than the median HHI in their own potential markets.
The variance in median HHI between the chains may have to do with differences in branding and product selection. Marshalls and T.J. Maxx tend to have the higher price points, with T.J. Maxx in particular expanding its designer offerings over the past few years through its Runway stores. Ross and Burlington, known for their no-frills approach to clothing shopping, have relatively lower price points – and may see more customers seeking bargains over high fashion.
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While an analysis of trade area median HHI highlights differences between the chains’ visitor bases, a deeper exploration of Marshalls, Ross, and Burlington’s trade areas suggests that the retailers also share common ground – specifically, their popularity with middle-income families. For almost all brands, the captured market share of households categorized by the Spatial.ai: PersonaLive dataset as “Family Union” and “Cultural Connections” was larger than the potential market share. T.J. Maxx, which had a slightly lower share of “Cultural Connection” households in its captured market relative to its potential market, was the sole exception.
All four chains continue to add stores to their fleets – Ross opened 97 stores in fiscal 2023, and Burlington is looking to expand in over 60 former Bed Bath and Beyond locations. Focusing on trade areas with diverse families, then, may serve Marshalls, Ross, and Burlington. And T.J. Maxx, which has been enjoying a resurgence of interest from younger shoppers, might consider expanding into areas that attract young professionals.
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Off-price apparel retailers continue to succeed despite – or perhaps because of – a challenging economic climate. Will their success continue into 2024?
Visit placer.ai to keep up-to-date on the latest data-driven retail trends.
With shopping center vacancy rates now lower than they were pre-COVID, we dove into the demographic and psychographic trade area data for leading Indoor Malls, Open-Air Shopping Centers, and Outlet Malls to understand who visited malls in 2023.
Diving into the demographics of the trade areas of the various mall types in 2023 reveal both similarities and differences between the typical visitor to Indoor Malls, Open-Air Shopping Centers, and Outlet Malls.
In all three mall types, the median trade area household income (HHI) in the three mall types was higher than the nationwide median HHI of $69.5K (according to the STI: Popstats 2022 dataset). But Open-Air Shopping Centers drew the highest income visitors, with a trade area median HHI of $87.8K in 2023. The trade area of Open-Air Shopping Centers also had the lowest share of Households with Children and the highest share of singles (One-Person and Non-Family Households).
Outlet Malls lay at the other end of the spectrum, with a trade area median trade HHI of $73.9K, the highest share of Households with Children, and the lowest share of single households. And the median HHI and household composition for the trade area of Indoor Malls stood between those of the other two types.
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Even though Outlet Malls tend to draw the highest, and Open-Air Shopping Centers draw the lowest share of family visitors (Households with Children), diving deeper into various family segments reveals a more nuanced picture.
For example, the trade areas of Outlet Malls do indeed contain the highest shares of the “Family Union” and “Promising Families” segments – defined by Experian: Mosaic as blue-collar families and young families in starter homes, respectively. But Open-Air Shopping Centers tend to draw the highest share of the more affluent “Flourishing Families” segment – perhaps thanks to the Open-Air Shopping Centers’ higher trade area median HHI.
So while the demographic analysis can provide an overall snapshot of the various mall types’ audience, diving into the psychographics can yield a higher-resolution picture of the types of shoppers frequenting each shopping center category.
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For the most part, malls – especially Indoor Malls and Open-Air Shopping Centers – succeeded in exceeding or staying close to 2022 visit levels last year, despite the economic headwinds. And while January data indicates that the space may be entering a challenging period, there are plenty of reasons to think that the dip in early 2024 foot traffic is just a temporary setback driven by a unique set of circumstances. As the year continues to unfold, tracking visits in this sector will offer more insights into the state of the 2024 consumer.
For more data-driven retail insights, visit placer.ai/blog.
When we last checked in with the home improvement category, high interest rates and a cooling housing market had impacted visits to retailers The Home Depot, Lowe’s, and Tractor Supply. As 2024 gets underway, what might lie ahead for these chains? We take a look at the data to find out.
Home Depot and Lowe’s, two of the largest home improvement retailers in the country, command a significant share of the industry. The two chains experienced ups and downs over the past few years, from a pandemic-era spike in visits to a more recent slowdown as rising prices and slowing home sales led many would-be shoppers to rethink a renovation.
The turbulence in the Home Improvement space continued in 2023. In the first half of the year, foot traffic to The Home Depot and Lowe’s showed modest increases on a year-over-year (YoY) basis – but that momentum slowed into the years’ second half as home sales dropped to a six-month low.
Visit performance to these retailers may well improve in 2024. Should home sales pick up as mortgage rates continue on their expected downward trajectory, home improvement chains would likely see an increase in visits as new homeowners grab equipment for renovations.
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Analyzing median household income (HHI) of visitors to The Home Depot and Lowe’s, segmented by potential and captured markets, may provide insights into The Home Depot's stronger year-over-year foot traffic performance. (A chain's potential market looks at the Census Block Groups (CBGs) where visitors to a chain originate, weighted according to the CBG’s population. In contrast, captured market visit data reflects figures weighted by the actual number of visits from each CBG.)
The trade area median HHI tends to be higher for Home Depot than for Lowe’s in the chains’ potential markets – and the differences grow even more pronounced when analyzing the captured market. The Home Depot’s potential market median HHI stood at $71.5K/year – just slightly higher than Lowe’s $69.6K/year. But The Home Depot’s captured market median HHI was $74.3K/year in 2023 – around 4% higher than the chain’s potential market median HHI. Meanwhile, Lowe’s captured market median HHI of $69.0K/year was around 1% lower than its potential market median HHI.
The income disparity between the visitor bases of the two chains may provide context for The Home Depot’s foot traffic strength compared to Lowe’s – The Home Depot’s wealthier customers may be more insulated from the effects of inflation. And as inflation eases and demand for home renovations creeps up, Lowe’s may yet see visits tick up as its customers return to the chain.
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Tractor Supply Co. – another major home improvement chain – also offers a variety of products geared toward farm and ranch living, including animal feed and farm equipment. The company was a surprising pandemic winner, seeing its sales and foot traffic grow significantly as people moved to the countryside.
The chain's popularity has remained strong even as the pandemic-induced migration trends subside and the influx of city-dwellers to rural areas slows down. Visits to Tractor Supply remained consistently high throughout 2023, with only two months experiencing YoY foot traffic lags. Tractor Supply visits also outpaced visits to the home improvement category as a whole, indicating sustained demand for farm products.
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A deeper exploration of the three home improvement chains’ psychographic compositions indicates that Tractor Supply’s popularity with rural segments (as defined by the Spatial.ai: PersonaLive dataset) may be fueling some of its sustained visit success.
All three chains saw a higher share of rural visitors in their captured market compared to their potential market – indicating that rural consumers are particularly interested in home improvement tools and products. And of the three chains, Tractor Supply served the largest share of rural visitors by far. The share of rural audience segments in Tractor Supply’s potential markets significantly exceeded the share of these segments in the trade areas of Lowe’s and The Home Depot’s, and the relative share of rural segments in Tractor Supply’s captured market was even more impressive.
Lowe’s, which has bolstered its rural presence over the past year, had the second-highest percentage of rural segments in both its potential and captured markets – although its share of rural visitors was still considerably lower than Tractor Supply’s.
Meanwhile, The Home Depot saw the smallest share of rural visitors across all rural segments analyzed. The company’s captured market had just slightly more Rural High Income and Rural Low Income visitors relative to its potential market, and there was no difference between its captured and potential market shares of Rural Average Income consumers.
The impressive over-representation of rural customers to Lowe’s and Tractor Supply suggest that the rural potential for home improvement chains is significant – and chains that tap into the segment may see further foot traffic to their stores.
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The home improvement space has seen plenty of variance over the past few years, from the pandemic-fueled DIY highs of 2020 and 2021 to the overall slowdown brought on by inflation in 2023. Will visits begin to pick up again into 2024?
Visit placer.ai/blog for the latest data-driven retail insights.
How did Target, Walmart, Costco, Sam’s Club, and BJ’s Wholesale Club perform offline last year? Who visited the chains in 2023? And what does 2024 have in store for the space? We dove into the foot traffic and trade area composition data to find out.
The superstore and wholesale space performed well across the board in 2023, with leading retailers seeing consistent year-over-year (YoY) quarterly visit growth throughout the year. Costco led the pack in terms of overall YoY visit performance, followed by Sam’s Club and BJ’s Wholesale Club. The wholesale clubs’ strength may be due in part to the chains’ attractive gas prices, which were likely particularly tempting to 2023 consumers looking to stretch their budget.
Visits to Target also remained above the chain’s 2022 baseline during all four quarters, and Walmart – which closed several stores last year – mostly beat its 2022 visit performance, with the exception of Q4 where traffic remained essentially on par with last year’s levels.
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Visits to four out of five of the analyzed superstores and wholesale clubs dipped slightly in January 2024 relative to January 2023, perhaps due to comparisons to a strong Q1 2023 performance or to post-holidays consumer cutbacks. But despite the challenging circumstances, the YoY drops remained minimal – so the softer start to the year is not necessarily an indication of things to come.
And in contrast to the subdued visit performance in the rest of the category, Costco foot traffic exceeded its January 2023 visit baseline – revealing the potential for the superstore space to grow in a positive direction in 2024.
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Analyzing monthly visits to leading superstore and wholesale clubs in 2023 compared to each chain’s monthly visit average reveals different consumer patterns for each brand.
While all chains saw their monthly visits peak in December, Target experienced the most significant holiday peak, with a 33.9% increase in monthly visits compared to its 2023 monthly average – more than double the increases of the other four chains analyzed. Target also saw the strongest August visit growth relative to its 2023 monthly average as parents and students likely flocked to the chain in search of Back-to-School apparel and supplies.
In June and July, Walmart’s relative visit growth exceeded that of the other four chains – possible thanks to consumers stocking up on summer supplies. And the wholesale clubs saw larger relative increases in November, as those chains’ bulk grocery offerings may have helped consumers shop for a crowd ahead of Thanksgiving dinner.
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The trade areas of all five chains analyzed included a higher share of Households with Children when compared to the nationwide average. But the two superstore brands – Walmart and Target – also had larger percentages of 1-Person and Non-Family (roommate) Households when compared to the nationwide average, while the three wholesale clubs had smaller shares.
So while average wholesale clubs and their large selection of bulk packaged items cater primarily to families, superstores seem to attract a wider range of shoppers, including consumers shopping for one and living alone or with roommates.
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Diving into the psychographic composition of the trade areas highlights additional differences between the various chains’ audiences.
The trade areas of Walmart and of its subsidiary Sam’s Club had the highest share of Spatial.ai: PersonaLive’s small town and rural audience segments, including “Small Town Low Income,” “Rural Low Income,” “Rural Average Income,” and “Rural High Income.”
Suburban segments were more distributed. Walmart and Sam’s Club served a higher share of “Blue Collar Suburbs” while Target and Costco drew more “Wealthy Suburban Families” – and BJ’s Wholesale Club received the largest percentage of “Upper Suburban Diverse Families.”
BJ’s trade area also included the largest shares of almost all the urban segments with the exception of “Educated Urbanites” – defined by Spatial.ai as “well educated young singles living in dense urban areas working relatively high paying jobs” – for which Target came out on top.
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The leading superstore and wholesale clubs performed well in 2023 as consumers relied on their bulk-packaging and value-pricing to stretch their increasingly strained budgets.
What does 2024 have in store? Visit the placer.ai blog to find out.
It only comes around once every 12 years, and for those born in the Year of the Dragon, they are considered to be the luckiest of the Zodiac signs. This year’s element is wood, and thus a Wood Dragon year can portend good fortune, action, and expansion. Let’s take a look at some Asian concepts, brands, and shopping centers and see if our Placer trends indicate whether they might be in for a lucky, powerful year.
Tea drinks, especially those including tapioca pearls otherwise known as boba have created billionaires in China, and global expansion means that you can get your fill of the chewy goodies all over the world nowadays. Some of the largest chains in the US include Kung Fu Tea, with over 350 locations; Gong Cha; Sharetea with more than 500 stores in 15 locations; Boba Guys known for their famous strawberry puree matcha tea latte; and It’s Boba Time, Happy Lemon, YiFang Taiwan Fruit Tea, and Boba Loca.
Tea has been an integral part of our global history. As a precious commodity, it was traded along the Silk Road, leading to increased transcontinental commerce. In American history, the Boston Tea Party was perhaps not so much about tea itself but about taxation and representation, but in any words, it was definitely a catalyst towards American independence. And now, thousands of years later, tea continues to be a tour de force for antioxidants, anti-aging, and an overall delicious base for a bevy of creative drinks. Economists often talk about the “latte index” - used to estimate purchasing power parity in 16 countries around the world compared to the cost of a tall Starbucks latte in NYC.
With the way things are going with teas, could a boba index not be far behind? We examined year-over-year traffic for some of the leading tea/boba chains compared to specialty coffee chains. Boba has seen gains compared to last year, usually at a higher percentage than coffee. Both beverage type chains have trended upwards in 2023, although coffee had a bit of a dip in the latter part of the year.
To be fair, one can often order a coffee at a tea store and vice versa, but there are certainly toppings and color sensations at tea stores that are uniquely suited to social media, such as butterfly pea, which is an intense shade of violet, or various vibrant toppings such as popping boba in pink and orange. In some creations, the tea is even dispensed with entirely, such as Tiger Sugar’s brown sugar boba milk with a deep caramel flavor, or their highly-coveted ice cream bar version of the drink.
For those wishing for an authentic taste of an Asian shopping mall experience during Lunar New Year, there are many options around the US including Chinese shopping malls in the west like Focus Plaza/San Gabriel Square in San Gabriel Valley, Diamond Jamboree in Irvine, Shanghai Plaza in Chinatown Las Vegas, and Great Wall Mall in Kent, WA as well as in the east like Tangram and New World Mall in Flushing, NY.
Of these malls, Diamond Jamboree is the most visited. It has local favorites like The Kickin' Crab, Hai Di Lao, and Pepper Lunch. For dessert, head on over to Meet Fresh, with its refreshing grass jelly or chewy taro balls or SomiSomi for the cutest fish-shaped pancakes and a delectable choice of soft-serve flavors like ube and sesame.
Next is Shanghai Plaza, which is located in Las Vegas Chinatown. At Shanghai Taste, one can slurp xiao long bao soup dumplings, and another favorite - sheng jian bao - which is basically the love child of the more well known bao zi (meat bun) and the aforementioned xiao long bao. Somehow, it manages to have the fluffiness of the outer dough with a burst of soup and filling inside. Add the slight crunchiness of a pan-fried base and your mouth will be amazed by the variety of flavors and textures.
San Gabriel Square, also known as Focus Plaza, is the granddaddy of San Gabriel Valley larger-than-life malls. Also lovingly named “Chinese Disneyland” it offers a famous restaurant Five Star Seafood, a 99 Ranch, as well as other restaurants and jewelry stores. It opened in 1990 and became the place where one could go to buy laserdiscs for karaoke machines, as well as buy delicacies like honey-dried mangoes or salted plums. Nearly 25 years later, it is poised for renovation as it competes with other Chinese malls in the Greater Los Angeles and Orange County area for hot new restaurants and bakeries.
Moving across the country, we have Tangram in Queens, NY. Who doesn’t love an Asian food hall, with its dizzying array of hawkers, smells, and bustle? Tangram opened its Food Hall in January 2023, with a mix of international cuisine such as Joju for Vietnamese sandwiches, Zaab Zaab for Thai food, and Na Tart for egg tarts. One unique offering at Xi’an Famous Food is their piece de resistance lamb noodles. Topped with melt-in-your-mouth lamb, the broth is composed of both cumin and chili, and the hand-pulled noodles offer you that perfect texture referred to as “qq” in Chinese, whose closest renditions for noodles in another language might be “al dente.” This food hall spans 24,000 square feet and is lit with neon to mimic the non-stop night market energy in cosmopolitan Asian cities.
Great Wall Mall in Kent, Seattle is another Pan-Asian shopping center, despite its Chinese-centric name. Anchored by a 99 Ranch market, it also includes Chinese and Vietnamese restaurants, a Korean clothing store, hair and nail salons, and home decor. Architecturally, the outside is flanked by a fortress-style wall that mimics the Great Wall of China.
Last, but not least, we have New World Mall. Another sprawling food hall awaits, with over two dozen eateries to choose from. The exciting part of visiting food halls is the ability to get to the level of regional cuisine. Whether its Chongqing xiao mian featuring spicy Sichuan noodles or knife-cut noodles from Lanzhou, one has the opportunity to try a variety of cooking styles, nuances in similar-sounding dishes, and basically explore an entire country through its diversity of tastes.
The past couple of years have been challenging ones for the dining industry as high food prices and economic headwinds led many consumers to cut back on unnecessary indulgences. Still, people can’t eat at home all the time, and there’s always demand for restaurants that serve up good food and a welcoming ambiance – without breaking the bank.
So with Q4 2023 under our belts, we dove into the data to check in with two dining chains that are especially good at giving customers what they want: Shake Shack and Wingstop. How did they perform during the final quarter of 2023? And what lies ahead for them in the new year?
Shake Shack, curiously named after an amusement park ride from 70’s hit movie Grease, continues to impress. Following a robust third quarter, the gourmet burger joint maintained strong positive year-over-year (YoY) visit growth throughout Q4 2023 – finishing out the year with a remarkable 24.3% foot traffic jump in December 2023.
Wingstop, another darling of the dining industry, also ended 2023 with a bang. Whether celebrating the New York Knicks with a special lemon garlic flavor, or jumping on the dry January bandwagon with its own “dry rub January”, the popular chicken restaurant draws crowds by staying up-to-date with popular trends. And throughout Q4 2023, Wingstop saw positive visit growth ranging from 12.8% to 16.3%.
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The ongoing success of these two chains in a difficult overall environment shows that there’s more than one way to win at the dining game. With limited-time offerings like White Truffle Burgers, and sandwiches that feature Kimchi slaw, Shake Shack’s relatively upscale offerings have traditionally drawn affluent audiences. But as the chain has continued to expand, its customer base has diversified – with the median household income (HHI) of its captured market dropping by 8.6% over the past four years. Over the same period, the share of ultra-wealthy families and educated urbanites in the restaurant’s captured market declined, while the share of young professionals and urban low income consumers increased. Wider audiences, of course, means broader appeal – and more people getting addicted to Shake Shack’s delicious offerings.
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Wingstop, for its part, has pursued a somewhat different strategy. Positioned as an affordable eatery straddling the space between fast food and fast-casual, Wingstop draws less well-to-do consumers. Combining foot traffic data with demographics from STI’s PopStats shows that the median HHI of Wingstop’s captured market came in at $62.1K in Q4 2023, well below the nationwide baseline of $69.5K.
But despite targeting a demographic with less discretionary income, Wingstop has carved out a niche for itself as a to-go dining destination for people seeking the perfect place to sit down to a nice, big meal with the family. In Wingstop’s four biggest markets – Texas, California, Florida, and Illinois – the chain’s trade areas featured more persons per household than the statewide averages in Q4 2023. And Wingstop’s captured markets were also over-indexed for families with children – showing that parents are particularly likely to pay the restaurant a visit.
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Though food prices have stabilized and consumer confidence has begun to recover, last year ended on a tough note for restaurants. But while the category as a whole has yet to fully regain its footing, chains like Shake Shack and Wingstop are finding success by leaning into evolving consumer demand.
Will cooling inflation kickstart a dining revival? And what does the rest of 2024 have in store for Shake Shack and Wingstop?
Follow Placer.ai to find out.
Grocery chains in the United States are increasingly investing in on-site healthcare clinics, transforming their stores into hubs for both food and wellness. While grocery stores have long featured pharmacies and some basic healthcare services like vaccinations, recent years have seen a shift towards more extensive healthcare offerings.
Today, many grocery stores offer a range of services – from primary and urgent care to dental and mental health care. In addition to providing an important community service, grocery-anchored healthcare clinics can boost foot traffic at chains, help health providers reach more patients, and allow shoppers to manage their health and home needs in one convenient trip.
This white paper examines the impact these in-store clinics have on grocery chain visitation patterns and trade area characteristics. Are shoppers more or less likely to make repeat visits to grocery stores with healthcare services? And how does the addition of a clinic affect the demographic profile of a grocery store’s captured market? The report examines these questions and more, offering insights for stakeholders across the grocery and healthcare industries.
Analyzing foot traffic to grocery stores with and without in-store clinics shows the positive impact of these services: Across chains, locations with on-site healthcare offerings drew more visits in H1 2024 than their chain-wide averages.
The Kroger Co., which operates numerous regional banners as well as its own eponymous chain, has been a leader in in-store healthcare services since the early aughts. The company introduced its in-store medical center, The Little Clinic in 2003 – and today operates over 225 Little Clinic locations across its Kroger banner, as well as regional chains Dillons, Jay C Food Stores, Fry’s, and King Soopers.
And in H1 2024, the eight Dillons locations with clinics saw, on average, 93.0% more visits per location than the chain’s banner-wide average. Jay C, which offers two in-store clinics, also saw visits to these venues outpace the H1 2024 banner-wide average by 92.9%. For both chains, relatively small overall footprints may contribute to their outsize visit differences: Indiana-focused Jay C operates just 22 locations, all in the Hoosier State, while Kansas-based Dillons has some 64 locations.
But similar patterns, if somewhat less pronounced, could be observed at Kroger (43.0%), Fry’s (19.2%), and King Soopers (16.5%) – as well as at H-E-B (14.5%), which boasts its own expanding network of in-store clinics.
Analyzing the trade areas of grocery stores with healthcare clinics shows that these services tend to draw more affluent visitors from within the stores’ trade areas.
For some chains, including King Soopers, H-E-B, and Jay C, the clinics are positioned to begin with in areas serving higher-income communities. The median household income (HHI) of King Soopers’ in-store clinic’s potential markets, for example, came in at $92.3K in H1 2024 – significantly above the chain’s overall potential market median HHI of $88.1K. Similarly, the potential markets of H-E-B and Jay C Food Stores with clinics had higher median HHIs than the chains’ overall averages.
And for all three chains, stores with clinics tended to attract visitors from captured markets with even higher median HHIs – showing that within these affluent communities, it is the more well-to-do customers that tend to frequent these venues. (A chain or store’s potential market is obtained by weighting each CBG in its trade area according to the size of the population – thus reflecting the general composition of the community it serves. A chain or store’s captured market, on the other hand, is obtained by weighting each CBG according to its share of visits to the business in question – and thus represents the population that actually visits it in practice.)
Other brands, including Fry’s, Kroger, and Dillons, have positioned clinics in stores with potential market median HHIs slightly below chain-wide averages. But within these markets, too, it is the more affluent consumers that are visiting these stores, pushing up the median HHI of their captured markets.
These patterns highlight that, for now, grocery store clinics tend to attract consumers on the upper ends of local income spectrums. This information can be utilized by healthcare professionals and grocery store owners to pinpoint neighborhoods that may be open to grocery-anchored clinics, or to take steps to increase penetration in other areas.
Supermarket giant Kroger is a major player in the world of grocery-anchored healthcare, offering visitors access to pharmacies, clinics, and telehealth options via its grocery stores. What impact has the company’s embrace of healthcare had on visits and loyalty?
An analysis of household compositions across the potential and captured markets of Kroger-owned stores with and without Little Clinic offerings suggests that families with children are extremely receptive to these services.
In H1 2024, Kroger, King Soopers, Fry’s, Jay C, and Dillons all featured captured markets with higher shares of STI: PopStats’ “Households With Children” segment than their potential ones – highlighting the chains’ appeal for families. But the share of parental households in those stores with Little Clinics jumped significantly higher for all five banners.
The share of families with children in King Soopers’ overall captured market stood at 28.3% in H1 2024, higher than the 27.2% in its potential one. But the households with children in the captured markets of King Soopers locations with Little Clinics was significantly higher – 30.6% – and similar patterns emerged at Jay C, Dillons, Kroger, and Fry’s.
This special draw is likely linked to the clinics' focus on family health services like physicals, nutrition plans, and vaccines. The convenience of being able to take care of healthcare, grocery shopping, and pharmacy needs all in one go makes these stores particularly attractive to parents. And this jump in foot traffic shows the strategic advantage of incorporating healthcare services into the retail environment.
Providing essential healthcare services at the supermarket can establish a grocery chain as a crucial part of a shopper's daily life, enhancing visitor loyalty, and helping nurture long-term customer relationships. Indeed, in-store clinics offer a unique opportunity for grocery providers to connect with customers on a level that extends beyond the transactional.
An analysis of several Kroger-branded locations in the Cincinnati metro area showcases the profound impact in-store clinics can have on customer loyalty. In H1 2024, stores with Little Clinics had significantly higher shares of repeat visitors – defined as those making six or more stops at the store during the analyzed period – than those without.
For instance, 36.4% of visitors to a Kroger Marketplace store with an in-store clinic in Harrison, Ohio, frequented the location at least six times during the first half of 2024. But over the same period, only 29.0% of visitors stopped by at least six times to a nearby Kroger location in Cleves, Ohio – just ten miles away. Similarly, 30.7% of visitors to the Beechmont Ave. Kroger Food & Drug location with a clinic visited at least six times in H1 2024, compared to 23.0% for the nearby Ohio Pike Kroger store.
This trend was consistent across the analyzed locations, with those offering in-store clinics attracting significantly higher shares of loyal visitors. These metrics support the value of offering additional services as a draw for frequent visitors, while also providing the clinics themselves with the visitor volume needed to operate profitably.
Texan grocery chain H-E-B is beloved across the state – and though the chain isn’t new to the healthcare scene, it has been doubling down on wellness. In 2022, H-E-B launched H-E-B Wellness, a healthcare platform that offers patrons a variety of medical services, including – as of today – some 12 primary care clinics, many of them inside stores.
H-E-B stores with primary care clinics are helping to cement the grocer’s role as a convenient one-stop for local residents – allowing them to drop in to a nearby location for both daily grocery needs and wellness care.
H-E-B has always placed a premium on community, stepping up to help local residents in times of need. And though the chain as a whole draws an overwhelming majority of its visitors from nearby areas, those with clinics do so even more effectively. In H1 2024, some 83.6% of visitors to H-E-B came from less than 10 miles away. But for locations with primary care clinics, this share increased to 88.0%.
This suggests that wellness services are particularly appealing to nearby residents, strengthening H-E-B’s connection with local consumers even further. And for a grocery store centered on community engagement, the integration of health services into its offerings is proving to be a winning strategy.
H-E-B has been steadily expanding its primary care offerings since it launched the Wellness concept, adding two primary clinics at locations in Cypress, TX and Katy, TX in June 2023. Following the opening of these clinics – which operate Mondays through Fridays – both locations saw marked increases in the share of “Urban Cliff Dwellers” in their weekday captured markets. This STI: Landscape segment group encompasses families both with and without children, earning modest incomes and enjoying middle-class pleasantries.
Between June 2022 - May 2023, the share of “Urban Cliff Dwellers” in the weekday captured markets of the Cypress and Katy locations stood at 9.5% and 7.2%, respectively. But once the stores had clinics in place, those numbers jumped to 12.4% and 11.0%, respectively.
This increase in the stores’ reach among “Urban Cliff Dwellers” immediately following the clinics’ openings suggests that in addition to more affluent consumers, middle-class families also harbor considerable interest in these services. As more retailers continue making inroads into the healthcare sector, they may find similar success in attracting diverse groups of convenience-seeking shoppers.
As grocery stores lean into healthcare, they are transforming into multifaceted hubs that offer both essential health services and everyday shopping needs. Retailers like Kroger and H-E-B are reaping the benefits of boosted foot traffic, higher-income visitors, and strengthened community ties – while offering their shoppers convenience that helps streamline their daily routines.
Walmart, Target, and Costco are three of the most popular retailers in the country, drawing millions of shoppers through their doors each day. Each of these retail giants boasts distinct strengths and strategies that cater to their unique customer bases, allowing them to thrive in a highly competitive market.
This white paper takes a closer look at some of the factors that are helping the three chains flourish. How does Walmart’s positioning as a family-friendly retailer help it drive visits in its more competitive markets? How can Target leverage its reach to drive more loyal visits? And what does the increase in young shoppers frequenting membership warehouse clubs mean for Costco?
We dove into the location analytics to explore these questions further.
Examining monthly visitation patterns for the three retail giants shows Costco’s wholesale club model leading the way with consistent year-over-year (YoY) visit growth – ranging from 6.1% in stormy January 2024 to 13.3% in June. Family favorite Walmart followed closely behind, seeing YoY foot traffic growth during all but two months, when visits briefly trailed slightly behind 2023 levels before rebounding.
Target, meanwhile, had a slower start to the year, with visits trending below 2023 levels for most of January to April. Over this same period (the three months ending May 2024), Target reported a 3.7% decline in YoY comparable sales. But since then, things have begun to turn around for the chain, with YoY visits rising in May (2.5%), June (8.9%), and July (4.7%). This renewed visit growth into the second half of the year bodes well for the superstore – and the ongoing back-to-school season may well push visits up further as the summer winds down.
For all three chains, Q2 2024’s visit success has likely been bolstered in part by summer deals and intensifying price wars – as the retailers slash prices to woo inflation-weary consumers back to the store.
Over the past few years, consumer behaviors have been changing rapidly in response to shifting economic conditions. This next section explores some of these changes at Walmart, Target, and Costco, to better understand what may be driving these shifts.
One way that consumers have traditionally responded to inflation and other headwinds has been through the adoption of mission-driven shopping – making fewer, but longer, trips to retailers, so that every visit counts. Superstores and wholesale clubs, which offer one-stop shopping experiences, have long been prime destinations for these extended shopping trips. And even during periods when visits have lagged, these retailers have often benefited from extended dwell times – leading to bigger basket sizes.
A look at changes in average dwell times at Walmart and Target suggests that as YoY visits have picked up, dwell times have come down – perhaps reflecting a normalization of consumers’ shopping patterns. With inflation stabilizing and gas prices lower than they were in 2022 and 2023, customers may feel less pressure to consolidate shopping trips than they have in recent years.
In contrast, Costco’s comparatively long dwell times have remained stable over the past several years. The warehouse club’s bulk offerings, plentiful free samples, and inexpensive food court encourage shoppers to spend more time browsing the aisles than they would at other retailers. And even if mission-driven shopping continues to subside, Costco customers will likely keep on making extra-long shopping trips.
While inflation is cooling faster than expected, prices remain high, and new players are stepping into the retail space occupied by Walmart, Target, and Costco – especially dollar stores. Though higher-income customers increasingly rely on the three retail giants for many of their purchases, customers of more modest means are often drawn to the rock-bottom prices offered at dollar stores.
And analyzing the cross-shopping patterns of visitors to Walmart, Target, and Costco shows that growing shares of visitors to the three behemoths also visit Dollar Tree on a regular basis. In Q2 2019, the share of visitors to Walmart, Target, and Costco who frequented Dollar Tree at least three times ranged between 9.8% and 13.7%. But by Q2 2024, that share rose to 16.7%-21.6%.
Dollar Tree is leaning into this increased interest among superstore shoppers. Over the past year, Dollar Tree added some 350 Dollar Tree locations, even as it shuttered nearly 400 Family Dollar stores. And the chain recently acquired the leases of some 170 99 Cents Only Stores – offering Dollar Tree access to a customer base accustomed to buying everything from groceries to household goods. As Dollar Tree continues to grow its footprint and expand its food offerings, the chain will be better positioned than ever to provide a real challenge to Walmart, Target, and Costco.
Still, the three retail giants each have unique offerings that distinguish them from dollar stores. This next section examines what sets Walmart, Target, and Costco apart – and how they can continue to strengthen their competitive edge.
With competition on the rise, Walmart, Target, and Costco must display agility in navigating an ever-evolving market landscape. This section dives into the data for each chain’s more successful metro areas to see what factors are helping them outperform nationwide averages – and what metrics the retailers can harness to try to replicate these results nationwide.
Target recently expanded its Target Circle Rewards program, rolling out three new tiers for its 100 million members. And this focus on loyalty has proven successful for the chain. Demographic and visitation data reveal a strong correlation between the median household incomes (HHIs) of Target locations’ captured markets across CBSAs (core-based statistical areas), and their share of loyal visitors in Q2 2024: CBSAs where Target locations’ captured markets had higher median HHIs also tended to draw more repeat monthly visitors.
Target’s captured markets in the Los Angeles-Long Beach-Anaheim, LA CBSA, for example, featured a median HHI of $89.8K in Q2 2024 – and 48.0% of the chain’s LA visitors frequented a Target at least twice a month during the quarter. Target stores in the Chicago-Naperville-Elgin, IL-IN-WI CBSA, where the chain’s captured markets had a median HHI of $88.7K in Q2 2024, also had a loyalty rate of 48.0%.
Target generally attracts a more affluent audience than Walmart. And even as the superstore slashes prices to attract more price-conscious consumers, the retailer is also taking steps likely to enhance its popularity among higher-income households. In April 2024, Target debuted a paid membership tier within its loyalty program offering perks like same-day delivery for a fee. Maintaining and expanding these premium offerings will be key for Target as it seeks to attract more affluent customers and replicate its high-performing results in CBSAs nationwide.
The persistent inflation of the past few years, while challenging for some retailers, has also created new opportunities – particularly for wholesalers. Membership warehouse clubs, including Costco, are gaining popularity among younger shoppers, a cohort often looking for new ways to stretch their more limited budgets. An October 2023 survey revealed that nearly 15% of respondents aged 18 to 24 and 17% of those aged 25 to 30 shop at Costco.
A closer look at some of Costco’s best-performing CBSAs for YoY visit-per-location growth highlights the significance of these younger shoppers: In H1 2024, the company’s YoY visit-per-location growth was strongest in areas with higher-than-average shares of young urban singles.
For example, the San Diego-Chula Vista-Carlsbad, CA CBSA experienced visit-per-location growth of 10.4% YoY in H1 2024, while the nationwide average stood at 7.9%. And the CBSA’s share of Young Urban Singles, defined by the Spatial.ai: PersonaLive dataset as “singles starting their careers in trade and service jobs,” was 12.1%, well above Costco’s nationwide average of 7.3%.
Walmart is a one-stop shop for everything from affordable groceries to clothing to home furnishings, making it especially popular among families. The retailer actively courts this segment with baby offerings designed to meet the needs of both kids and parents, virtual offerings in the metaverse, and collectible toys.
And visitation data reveals a connection between the extent of different Walmart locations’ YoY visit growth and the share of households with children in their captured markets.
In H1 2024, nationwide visits to Walmart increased by 4.1% YoY, while the share of households with children in the chain’s overall captured market hovered just under the nationwide baseline. But in some CBSAs where Walmart outpaced this nationwide growth, the retail giant also proved especially adept at attracting parental households – outpacing relevant statewide baselines.
In Boston-Cambridge-Newton, MA, for example, Walmart experienced 5.0% YoY visit growth in H1 2024 – while the share of households with children in the chain’s local captured market stood 7% above the Massachusetts state average. And in Grand Rapids-Kentwood, MI, where Walmart’s share of parental households outpaced the Minnesota state average by an even wider 15% margin, the retailer saw impressive 7.3% YoY visit growth. This pattern repeated itself in other metro areas, suggesting that there may be a correlation between local Walmart locations’ visit growth and their relative ability to draw households with children.
Walmart can continue solidifying its market position by leaning into its family-oriented offerings and expanding its footprint in regions with growing populations of young families.
Walmart, Target, and Costco all experienced YoY visit growth in the final months of H1 2024, with Costco leading the way. And though the three chains still face considerable challenges, each one brings unique strengths to the table. By continuously innovating and responding to changing market conditions, Walmart, Target, and Costco can not only overcome obstacles but also leverage them to reinforce their market positions and drive continued growth.
The first Lollapalooza – a four-day music festival – took place in 1991. Chicago’s Grant Park became the event’s permanent home (at least in the United States) in 2005, drawing thousands of revelers and music fans to the park each year.
This year, the festival once again demonstrated its powerful impact on the city. On August 1st, 2024, visits to Grant Park surged by 1,313.2% relative to the YTD daily average, as crowds converged on the park to see Chappell Roan’s much-anticipated performance. And during the first three days of the event, the event drew significantly more foot traffic than in 2023 – with visits up 18.9% to 35.9% compared to the first three days of last year’s festival (August 3rd to 5th, 2023).
Lollapalooza led to a dramatic spike in visits to Grant Park – and it also attracted a different type of visitor compared to the rest of the year.
Analyzing Grant Park’s captured market with Spatial.ai’s PersonaLive dataset reveals that Lollapalooza attendees are more likely to belong to the “Young Professionals” and “Ultra Wealthy Families” segment groups than the typical Grant Park visitor.
By contrast, the “Near-Urban Diverse Families” segment group, comprising middle-class diverse families living in or near cities, made up only 6.5% of visitors during the festival, compared to 12.0% during the rest of the year.
Additionally, visitors during Lollapalooza came from areas with higher HHIs than both the nationwide baseline of $76.1K and the average for park visitors throughout the year. Understanding the demographic profile of visitors to the park during Lollapalooza can help planners and city officials tailor future events to these segment groups – or look for ways to make the festival accessible to a wider range of music lovers.
Lollapalooza’s impact on Chicago extended beyond the boundaries of Grant Park, with nearby hotels seeing remarkable surges in foot traffic. The Congress Plaza Hotel on South Michigan Avenue witnessed a staggering 249.1% rise in visits during the week of July 29, 2024, compared to the YTD visit average. And Travelodge on East Harrison Street saw an impressive 181.8% increase. These spikes reflect the festival’s draw not just for locals but for out-of-town visitors who fill hotels across the city.
The North Michigan Avenue retail corridor also enjoyed a significant increase in foot traffic during the festival, with visits on Thursday, August 1st 56.0% higher than the YTD Thursday visit average. On Friday, August 2nd, visits to the corridor were 55.7% higher than the Friday visit average. These numbers highlight Lollapalooza’s role in driving economic activity across Chicago, as festival-goers venture beyond the park to explore the city’s vibrant retail and hospitality offerings.
City parks often serve as community hubs, and Flushing Meadows Corona Park in Queens, NY, has been a major gathering point for New Yorkers. The park hosted one of New York’s most beloved summer concerts – Governors Ball – which moved from Governors Island to Flushing Meadows in 2023.
During the festival (June 9th -11th, 2024), musicians like Post Malone and The Killers drew massive crowds to the park, with visits soaring to the highest levels seen all year. On June 9th, the opening day of the festival, foot traffic in the park was up 214.8% compared to the YTD daily average, and at its height, on June 8th, the festival drew 392.7% more visits than the YTD average.
The park also hosted other big events this summer – a July 21st set by DMC helped boost visits to 185.1% above the YTD average. And the Hong Kong Dragon Boat Festival on August 3rd and 4th led to major visit boosts of 221.4% and 51.6%, respectively.
These events not only draw large crowds, but also highlight the park’s role as a space where cultural and civic life can find expression, flourish, and contribute to the health of local communities.
Analyzing changes in Flushing Meadows Corona Park’s trade area size offers insight into how far people are willing to travel for these events. During Governors Ball, for example, the park’s trade area ballooned to 254.5 square miles, showing the festival's wide appeal. On July 20th, by contrast, when the park hosted several local bands and DJs, the trade area was a much more modest 57.0 square miles.
Summer events drive community engagement, economic activity, and civic pride. Cities that invest in their parks and event hubs, fostering lively and inclusive spaces, can create lasting value for both residents and visitors, enriching the cultural and social life of urban areas.
For more data-driven civic stories, visit Placer.ai.
