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Retailers nationwide are entering a holiday season defined by tight budgets. Still, demand persists, and consumers are juggling inflation fatigue with a willingness to splurge selectively. Department stores – historically strong holiday performers – are navigating uneven results, with some brands showing surprising strength, while others face continued headwinds.
Department store visits in Q3 2025 remained mostly below last year’s level, although performance varied by brand – Bloomingdale’s (5.4%), Nordstrom (2.0%) and Dillard’s (0.3%) posting YoY visit growth while other major department store chains saw visit declines.
While Q3 2025 saw broad visit declines, October offered meaningful room for optimism ahead of what is sure to be a closely-watched holiday shopping season.
Visits improved across the board, with all but three analyzed chains experiencing YoY visit growth. While successful early holiday promotions likely played a role, much of the momentum reflects retailers’ refreshed campaigns and in-store strategies – a sign that their efforts to reenergize foot traffic are paying off.
Bloomingdale’s has leaned into its luxury positioning with high-impact experiential campaigns like its “Just Imagine” activation and new personalization initiatives, while Nordstrom has strengthened its omnichannel experience while tapping into AI-powered capabilities to predict demand. And both brands effectively balance an appeal to affluent customer segments less acutely affected by inflation with the broad reach necessary to support frequent visitation.
Despite recent challenges, mid-tier department stores are the ones that shine most during the holidays – and as the holiday season approaches, last year’s trends offer insight into what to expect in 2025.
In 2024, JCPenney and Belk posted the largest visit spikes during key holiday shopping days. Black Friday gains were especially pronounced, though Super Saturday also delivered substantial lifts. Macy’s visit boosts came in third – likely reflecting its enduring holiday association, from flagship displays and Santa tours to national promotions that keep the brand top-of-mind.
These peaks highlight just how important the holiday season is for mid-tier department stores, while also revealing opportunities for the rest of the year: Targeted promotions, limited-time offers, and event-driven campaigns can still draw major in-store surges, even outside traditional holiday periods. And should typical trends hold, 2025’s fast-approaching holiday season will provide a welcome boost across the board for all brands.
While October’s momentum offers room for optimism, the broader foot traffic declines seen in Q3 underscore the challenges department stores face amid a bifurcated retail landscape increasingly split between luxury and off-price competitors. Still, holiday season success remains within reach – particularly for brands like Bloomingdale’s and Nordstrom willing to rework existing strategies and adapt to reach ever more discerning shoppers.
For the latest data-driven department store trends, check out Placer.ai’s free tools.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
Thanksgiving may be this month’s biggest Thursday milestone – but for coffee lovers, Thursdays in November are also about Starbucks’ Red Cup Day, when eager fans line up to snag a limited-edition reusable cup, free with any handcrafted holiday beverage.
How did this year’s Red Cup Day stack up? Did the recent Bearista frenzy steal some of the spotlight, or did the two events build on one another to create an even bigger buzz?
On November 13th, 2025, visits to Starbucks surged 44.5% above the year-to-date daily average, reaching an even higher traffic peak than that seen on the day of the Bearista launch. Though November 6th was reportedly Starbucks’ biggest sales day ever in North America, according to CEO Brian Niccol, Red Cup Day drove even higher U.S. visit volumes, as customers turned out in droves to participate in the holiday tradition.
Niccol also noted that November 13th, 2025 marked the strongest Red Cup Day in company history – a claim supported by the data. Foot traffic during the event surged 8.2% higher than in 2023 and 3.1% higher than in 2024.
These results suggest that far from cannibalizing Red Cup Day, the Bearista Cup’s release just days earlier amplified the excitement, creating a sustained wave of engagement across Starbucks’ holiday calendar.
The strong response to these discretionary, purchase-based promotions also shows that when done right, exclusivity, excitement, and brand magic can still bring in the crowds – even in an economic climate marked by uncertainty and waning consumer confidence.
In addition to visit volumes, in-store behavior also shifts on major launch days. Unsurprisingly, longer lines lead to longer dwell times, as customers who might normally be in and out quickly wait patiently for their turn. On both November 6th and November 13th, the share of Starbucks visitors staying between 10 and 30 minutes increased substantially compared to an average Thursday, while the share staying under ten minutes declined.
Interestingly, though, the share of visitors who lingered even longer (30+ minutes) to work, study, or relax dropped slightly on the big days – likely because the festive crowds deterred those looking for a quieter place to settle in.
With the holiday season just getting underway, Starbucks still has plenty of tricks up its sleeve – including the return of its beloved Eggnog and Chestnut Praline Lattes, along with a new wave of festive merchandise launching on December 2nd. Will the coffee leader be able to sustain its winning streak through the end of the year?
Follow Placer.ai/anchor to find out.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
After a slow start to 2025, both Gap and Urban Outfitters are seeing visits pick up again ahead of the holidays. Traffic gains in Q3 signal improving consumer appetite, positioning both brands for a stronger finish to the year.
Visits to Gap showed a sluggish start in Q1 2025, with traffic down 2.7% year-over-year, likely influenced by a tough February (a leap day and inclement weather keeping shoppers at home). But momentum turned in Q2 (1.4%) and Q3 (also 1.4%), indicating that the retailer is regaining traction heading into the holiday season.
Monthly traffic trends reinforce that this improvement was driven by improved visit trends in most months, with August seeing the strongest visit growth of 5.1%. September visits took a slight downturn before climbing to a respectable 4.8% in October, likely the result of new campaigns and improved merchandising.
Gap has spent the past few years focusing on a turnaround strategy that saw the apparel brand reintroduce classic styles, bring in new creative directors, and collaborate with brands like Dôen and celebrities such as Katseye and Tyla. And these efforts seem to be paying off, both in terms of elevated foot traffic and in Gap’s earnings: net sales increased 5% in the first quarter (ending on May 31, 2025) and 1% in Q2 2025.
Gen-Z focused Urban Outfitters experienced a similar recovery arc. Visits to the chain were down in both Q1 and Q2 2025, but rebounded in Q3, with foot traffic elevated by 2.4% YoY. and diving into the monthly visits highlights that, for the most part, visit declines were modest, with a marked pickup from August onward, ending October with a 5.8% increase in foot traffic. This foot traffic pull-up also aligned with Urban Outfitter’s robust financials, with Q2 net sales up 4.2%.
This increase in visits aligns closely with back-to-school shopping, and Urban Outfitters’ focus on college-age consumers likely helped reenergize in-store activity after a softer first half.
Diving into the demographic data for both brands provides additional context for recent foot traffic trends. Gap’s captured audience earns well above the nationwide median – $99.0 versus $79.6 – while its potential market skews lower, at $84.1K. This indicates that Gap's recent gains are being driven primarily by higher-income households, who may be more insulated from inflation fatigue and attracted to the brand’s premium collaborations. It also highlights an opportunity for Gap to broaden its appeal among mid-income shoppers who remain part of its potential audience.
Urban Outfitters, by contrast, saw a captured median HHI that trailed its potential market ($89.9 compared to $92.0), perhaps owing to its popularity among “Young Professionals” – a segment which is overrepresented in its captured market. The strength in this segment also may help contextualize the Q3 lift, given that the Young Professional category includes college students – a cohort that Urban Outfitters is particularly invested in, both through its product mix and its experiential initiatives.
Looking forward, Gap and Urban Outfitters seem primed to succeed this holiday season. For Gap, a combination of successful renewal efforts, increasing foot traffic, and a wealthier customer base position it to continue driving visits. For Urban Outfitters, continued focus on core engagement and higher-value customer acquisition will determine how strongly it closes out 2025.
For more data-driven retail insights follow Placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
As the retail calendar approaches its most pivotal stretch, we took a closer look at foot traffic trends across superstores and warehouse clubs to see how these key players are performing.
Warehouse clubs – Costco, Sam’s Club, and BJ’s Wholesale – continued to post visit gains in recent months, extending the momentum that has defined the segment for much of the past year. Their consistent performance reinforces the appeal of the wholesale model among value-driven shoppers navigating inflationary pressures and tighter budgets.
However, within the broader mass merchandise sector, October marked a clear turning point. Walmart saw its strongest year-over-year (YoY) visit gains of the last six months, while Target’s traffic shifted from negative to positive growth for the first time during the same period. The October surge coincided with the superstores' early early holiday sales events, signaling that the early holiday season has evolved into a pivotal retail moment.
Costco led foot traffic growth among mass merchants in September and October 2025. And some of that momentum may stem from the chain’s new early opening hours for Executive Members, which appears to have eased peak-hour congestion and enhanced the overall shopping experience.
As a reminder, Costco Executive Members pay almost twice as much as standard Gold Star members and account for over 74% of the chain’s sales, so it makes sense that Costco would look to add value and additional perks to its premium memberships.
But since extending its hours to open an hour early for Executive Members, Costco has likely enhanced the overall shopping experience for all visitors.
The graph below shows that between July and October 2025, after the introduction of early openings, the extended morning hours reduced Costco’s traffic at peak times compared to 2024, spreading visits more evenly throughout the day – which means less crowding for everyone.
Earlier openings also affect how Costco shoppers shop. Since the new hours took effect, the share of Costco visits lasting 30 to 45 minutes has increased, while the share of 45- to 60-minute visits has declined. This shift suggests that with lighter crowds and easier navigation, Costco shoppers are more purposeful and efficient.
Meanwhile, the share of Costco visits lasting less than 30 minutes also fell during the July to October period, suggesting that in a more streamlined environment, some shoppers feel comfortable taking extra time to browse – and perhaps add a few more items to their baskets – rather than rushing through a crowded store.
As the main holiday season approaches and consumer sentiment reaches new lows, value-forward warehouse clubs appear to remain in a strong position. Meanwhile, superstores’ success with early sales events demonstrates that shoppers remain highly responsive to promotions, an encouraging sign heading into the peak shopping period.
By offering early access to Executive Members, Costco is both recognizing its most valuable shoppers and alleviating crowding for everyone during typical rush periods – a move that could give the retailer an edge during the busy holiday season.
How will these retailers close out the holiday season? Visit Placer.ai/anchor to find out.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
The home improvement sector continues to face challenges in 2025, and category leaders Lowe’s and The Home Depot continue to navigate shifting demand. Yet signs of resilience are beginning to emerge as both brands report strength across key mid-range categories and identify opportunities to drive the next phase of growth.
We dove into the data for The Home Depot and Lowe’s to find out what location analytics reveals about their performance and evolving strategy.
In their recent Q2 2025 reportings, both Lowe’s and The Home Depot underscored an important dynamic – while comparable sales and average ticket size increased, comparable transactions declined. Both retailers attributed this pattern to a shift in the mix of projects. Although the quarter saw notable strength in seasonal items, repair and maintenance supplies, and some bigger-ticket items, consumers continued to defer large discretionary renovation projects that typically require financing. This aligns with both retailer’s modest YoY traffic declines during most months since November 2024, since larger projects tend to require more store visits than smaller upgrades or repair projects.
Yet, both companies remain cautiously optimistic. Since July 2025, YoY visits to The Home Depot and Lowe’s have remained near, and in some cases exceeded, 2024 levels – which should bode well for the companies’ upcoming reportings. The nation’s housing stock is older than ever and underlying demand for new construction remains strong. Meanwhile, many homeowners have deferred larger discretionary renovations in recent years, creating a buildup of latent demand. Once economic conditions improve and financing becomes more accessible, that pipeline of major projects is poised to reopen, driving a new wave of growth for the home improvement sector.
Another source of future home improvement demand may come from Gen Z, a cohort that is quickly growing within the renter and homeowner populations. As this generation enters new life stages – moving into first apartments, buying starter homes, and taking on their own improvement projects – its influence on the category will expand.
Both Lowe’s and The Home Depot are already positioning for this shift. Each recently launched creator programs designed to highlight how their brands can empower the next generation of DIYers and design enthusiasts, while tapping into the reach and authenticity of influencers’ online communities.
As shown in the chart below, both the Home Depot and Lowe’s currently see smaller shares of visits from the Spatial.ai: PersonaLive segments “Adulting” and “College” within their captured markets, compared to national benchmarks. This suggests a significant opportunity for both retailers to capture untapped demand from younger consumers living independently. If the brands’ creator initiatives succeed in driving greater engagement with Gen Z, their shares of these segments could grow in the years ahead.
The home improvement sector remains in transition in 2025, as Lowe’s and The Home Depot adapt to shifting consumer priorities. Still, both retailers are finding bright spots – from solid performance in mid-range categories to fresh opportunities that could drive the next phase of growth.
For more data-driven retail insights, visit Placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
Off-price apparel chains are entering the holidays from a position of strength. In a year defined by elevated prices and economic uncertainty, many consumers are trading down to value-driven retailers, and treasure-hunt favorites like TJX, Burlington, and Ross Dress for Less are reaping the rewards.
Between July and October 2025, TJX’s HomeGoods division (HomeGoods + Homesense) saw year-over-year visit growth ranging from 5.6% to 14.3%, while Marmaxx (T.J. Maxx + Marshalls + Sierra) climbed 6.3% to 10.8%. These strong traffic gains align with TJX’s most recent quarterly report, where comparable sales rose and transaction volumes increased across every division.
Burlington also maintained its upward trajectory following a strong Q2 FY25 earnings beat that included 5% comp sales growth. And Ross, which reported a 2% comp sales increase last quarter, saw visits trend strongly upward through late summer and early fall – a welcome sign following its withdrawal of full-year guidance earlier this year amid tariff uncertainty.
Visitation trends from last year’s holiday season show just how important this period is for off-price retailers – while Black Friday doesn't tend to bring the massive visit spikes seen at other apparel chains, the holidays are still a significant time for the segment.
In December 2024, visits to Burlington surged 62.5% above the chain’s full-year monthly average, while T.J. Maxx and Marshalls saw increases of 54.0% and 53.4%, respectively. Ross posted a more modest 38.3% increase, but still outperformed the broader non-off-price apparel segment. Meanwhile, HomeGoods and Homesense also exceeded the wider home-furnishings category’s December benchmarks.
This outperformance likely stems in part from off-price retailers’ limited e-commerce presence – with Burlington and Ross operating entirely offline and TJX maintaining only a small digital footprint across select banners. But it also reflects the ongoing strength of a category that gives shoppers a low-cost, high-delight way to browse and indulge during the holiday season.
All signs point to a standout season for off-price giants like TJX, Burlington, and Ross – but just how high can their holiday cheer climb this year?
Follow Placer.ai/anchor to find out.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
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.
The pandemic and economic headwinds that marked the past few years presented the multi-billion dollar hotel industry with significant challenges. But five years later, the industry is rallying – and some hotel segments are showing significant growth.
This white paper delves into location analytics across six major hotel categories – Luxury Hotels, Upper Upscale Hotels, Upscale Hotels, Upper Midscale Hotels, Midscale Hotels, and Economy Hotels – to explore the current state of the American hospitality market. The report examines changes in guest behavior, personas, and characteristics and looks at factors driving current visitation trends.
Overall, visits to hotels were 4.3% lower in Q2 2024 than in Q2 2019 (pre-pandemic). But this metric only tells part of the story. A deeper dive into the data shows that each hotel tier has been on a more nuanced recovery trajectory.
Economy chains – those offering the most basic accommodations at the lowest prices – saw visits down 24.6% in Q2 2024 compared to pre-pandemic – likely due in part to hotel closures that have plagued the tier in recent years. Though these chains were initially less impacted by the pandemic, they were dealt a significant blow by inflation – and have seen visits decline over the past three years. As hotels that cater to the most price-sensitive guests, these chains are particularly vulnerable to rising costs, and the first to suffer when consumer confidence takes a hit.
Luxury Hotels, on the other hand, have seen accelerated visit growth over the past year – and have succeeded in closing their pre-pandemic visit gap. Upscale chains, too, saw Q2 2024 visits on par with Q2 2019 levels. As tiers that serve wealthier guests with more disposable income, Luxury and Upscale Hotels are continuing to thrive in the face of headwinds.
But it is the Upper Midscale level – a tier that includes brands like Trademark Collection by Wyndham, Fairfield by Marriott, Holiday Inn Express by IHG Hotels & Resorts, and Hampton by Hilton – that has experienced the most robust visit growth compared to pre-pandemic. In Q2 2024, Upper Midscale Hotels drew 3.5% more visits than in Q2 2019. And during last year’s peak season (Q3 2023), Upper Midscale hotels saw the biggest visit boost of any analyzed tier.
As mid-range hotels that still offer a broad range of amenities, Upper Midscale chains strike a balance between indulgence and affordability. And perhaps unsurprisingly, hotel operators have been investing in this tier: In Q4 2023, Upper Midscale Hotels had the highest project count of any tier in the U.S. hotel construction and renovation pipeline.
The shift in favor of Upper Midscale Hotels and away from Economy chains is also evident when analyzing changes in relative visit share among the six hotel categories.
Upper Midscale hotels have always been major players: In H1 2019 they drew 28.7% of overall hotel visits – the most of any tier. But by H1 2024, their share of visits increased to 31.2%. Upscale Hotels – the second-largest tier – also saw their visit share increase, from 24.8% to 26.1%.
Meanwhile, Economy, Midscale, and Upper Upscale Hotels saw drops in visit share – with Economy chains, unsurprisingly, seeing the biggest decline. Luxury Hotels, for their parts, held firmly onto their piece of the pie, drawing 2.8% of visits in H1 2024.
Who are the visitors fueling the Upper Midscale visit revival? This next section explores shifts in visitor demographics to four Upper Midscale chains that are outperforming pre-pandemic visit levels: Trademark Collection by Wyndham, Holiday Inn Express by IHG Hotels & Resorts, Fairfield by Marriott, and Hampton by Hilton.
Analyzing the captured markets* of the four chains with demographics from STI: Popstats (2023) shows variance in the relative affluence of their visitor bases.
Fairfield by Marriott drew visitors from areas with a median household income (HHI) of $84.0K in H1 2024, well above the nationwide average of $76.1K. Hampton by Hilton and Trademark Collection by Wyndham, for their parts, drew guests from areas with respective HHIs of $79.6K and $78.5K – just above the nationwide average. Meanwhile, Holiday Inn Express by IHG Hotels & Resorts drew visitors from areas below the nationwide average.
But all four brands saw increases in the median HHIs of their captured markets over the past five years. This provides a further indication that it is wealthier consumers – those who have had to cut back less in the face of inflation – who are driving hotel recovery in 2024.
(*A chain’s captured market is obtained by weighting each Census Block Group (CBG) in its trade area according to the CBG’s share of visits to the chain – and so reflects the population that actually visits the chain in practice.)
Much of the Upper Midscale visit growth is being driven by chain expansion. But in some areas of the country, the average number of visits to individual hotel locations is also on the rise – highlighting especially robust growth potential.
Analyzing visits to existing Upper Midscale chains in four metropolitan areas with booming tourism industries – Salt Lake City, UT, Palm Bay, FL, San Diego, CA, and Richmond, VA – shows that these markets feature robust untapped demand.
Utah, for example, has emerged as a tourist hotspot in recent years – with millions of visitors flocking each year to local destinations like Salt Lake City to see the sights and take in the great outdoors. And Upper Midscale hotels in the region are reaping the benefits. In H1 2024, the overall number of visits to Upper Midscale chains in Salt Lake City was 69.4% higher than in H1 2019. Though some of this increase can be attributed to local chain expansion, the average number of visits to each individual Upper Midscale location in the area also rose by 12.5% over the same period.
Palm Bay, FL (the Space Coast) – another tourist favorite – is experiencing a similar trend. Between H1 2019 and H1 2024, overall visits to local Upper Midscale hotel chains grew by 36.4% – while the average number of visits per location increased a substantial 16.9%. Given this strong demand, it may come as no surprise that the area is undergoing a hotel construction boom. Upper Midscale hotels in other areas with flourishing tourism sectors, like San Diego, CA and Richmond, VA, are seeing similar trends, with increases in both overall visits and and in the average number of visits per location.
Though Economy chains have underperformed versus other categories in recent years, the tier does feature some bright spots. Some extended-stay brands in the Economy tier – hotels with perks and amenities that cater to the needs of longer-stay travelers – are succeeding despite category headwinds.
Choice Hotels’ portfolio, for example, includes WoodSpring Suites, an Economy chain offering affordable extended-stay accommodations in 35 states. In H1 2024, the chain drew 7.7% more visits than in the first half of 2019 – even as the wider Economy sector continued to languish. InTown Suites, another Economy extended stay chain, saw visits increase by 8.9% over the same period.
And location intelligence shows that the success of these two chains is likely being driven, in part, by their growing appeal to young, well-educated professionals. In H1 2019, households belonging to Spatial.ai: PersonaLive’s “Young Professionals” segment made up 9.6% of WoodSpring Suites’ captured market. But by H1 2024, the share of this group jumped dramatically to 13.3%. At the same time, InTown Suites saw its share of Young Professionals increase from 12.0% to 13.4%.
Whether due to an affinity for prolonged “workcations” (so-called “bleisure” excursions) or an embrace of super-commuting, younger guests have emerged as key drivers of growth for the extended stay segment. And by offering low–cost accommodations that meet the needs of these travelers, Economy chains can continue to grow their share of the pie.
The hospitality industry recovery continues – led by Upper Midscale Hotels, which offer elevated experiences that don’t break the bank. But today’s market has room for other tiers as well. By keeping abreast of local visitation patterns and changing consumer profiles, hotels across chain scales can personalize the visitor experience and drive customer satisfaction.
