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In a period marked by ongoing inflation and rising grocery prices, two chains – Trader Joe’s and Aldi – continue to thrive. We took a closer look at the two chains’ data to see what is driving their continued success.
Trader Joe’s and Aldi continue to be growth leaders in the grocery space. Both focus on selling a more limited selection of products and are known for providing quality at more budget-friendly prices. Both have also been in expansion mode, opening new stores and strengthening their market presence.
In 2024, Trader Joe’s visits increased by 6.2% compared to 2023, while Aldi saw an even more significant traffic rise of 18.2%. And while store expansion certainly contributed to this growth, average visits per location also trended upward, indicating strong demand across the two chains’ existing store networks. Trader Joe’s, which added about 35 stores in 2024, saw visits per location rise by 3.2%. Aldi, which added over 100 new locations in 2024, experienced a 13.5% increase in visits per location.
These strong foot traffic trends have continued into 2025, with weekly visits maintaining 2024’s momentum. Visits and visits per location were consistently elevated, an impressive feat given 2024’s already strong visit metrics.
As both chains continue to expand – Trader Joe’s has announced dozens of new openings in 2025, and Aldi has hundreds in the pipeline – the chains are well positioned for an even stronger 2025.
Trader Joe’s and Aldi offer a similar shopping experience – limited assortment, smaller store sizes, and a focus on budget-friendly offerings – but in practice, the two chains attract different audiences. In 2024, the median household income (HHI) in Trader Joe’s captured market trade area was $110.1K, significantly higher than Aldi’s $75.7K and the national median for grocery shoppers ($82.0K).
And while the two grocers attract shoppers from different sides of the income spectrum, analyzing consumer behavior at Aldi and Trader Joe’s reveals commonalities that may be driving some of their success.
Both Trader Joe’s and Aldi received a larger share of weekend visitors (35.0% and 34.4%, respectively) than the grocery nationwide average (32.1%). This suggests that, despite both chains’ limited assortment, consumers view Trader Joe’s and Aldi as weekend stock-up destinations – taking advantage of their days off to enjoy a more leisurely shopping experience at these value-driven retailers.
The relatively high share of weekend visits is consistent with another emerging trend at the two grocers that suggests Trader Joe’s and Aldi are increasingly becoming primary grocery destinations.
Between 2023 and 2024, both Aldi and Trader Joe’s saw a decrease in the share of visitors that visited another grocery chain immediately before or after their Aldi or Trader Joe’s trip. This shift may be a result of an increasingly budget-conscious shopper, and suggests that visitors are choosing Aldi and Trader Joe’s as a main shopping destination rather than supplementing trips to larger chains.
This marks a promising shift for Trader Joe’s and Aldi as they continue expanding their footprints. By commanding a bigger slice of the grocery pie, both chains are solidifying their positions as go-to destinations for full grocery hauls.
Trader Joe’s and Aldi seem well-positioned as 2025 gets underway, with both driving continued foot traffic growth and becoming more of a primary destination for their shoppers.
As both stores expand their footprint, will these trends hold?
Visit Placer.ai to find out.
As we wrap up Q1 2025, we’re already beginning to see a slow down in retail visitation by consumers. Despite general growth in retail visitation over the past few years, rapid price increases and changes in consumer behavior may finally have caught up to consumers across income levels. In this new unknown chapter of the retail industry, one thing is clear; high income consumers are critical for retailers to capture and retain in order to offset a drop-off in demand by other cohorts.
High income shoppers have long been the elusive target of retailers across a variety of price points. From Target to Neiman Marcus to specialty grocers, retailers have tried to enhance assortments, increase service offerings, and eliminate inconveniences for consumers who have the highest levels of disposable income. These factors only grew in importance as the retail industry navigated the pandemic and the subsequent consumer recovery – high income shoppers' price elasticity has bolstered the industry against rising inflation and price increases.
What’s fascinating, though, is that despite the buying power of high income consumers – they aren’t large contributors of retail visitation overall. According to our Placer 100 Dining and Retail Index, households with income greater than $200K accounted for 8.1% of overall visits in 2024, which is slightly lower than the share of visits from the same group in 2019 (8.2%). The share of visits from lower income households increased since the pandemic (32.9% of visits from households with a median income of $50K or less in 2024, compared to 32.7% in 2019), while the inverse is true for higher income shoppers.
The lower share of visits from high income households does align with the general trends we’ve observed across retail. Lower income shoppers, who have become more price conscious and constrained by rising costs, have increased their frequency of visits across multiple retail chains in order to derive the most value from their visits. Meanwhile, wealthier shoppers may have maintained or increased their online purchasing since the pandemic onset, which could have lessened their desire to shop in person.
With a smaller share of the wealthiest shoppers visiting retail locations, the fight for those consumer dollars is going to be even more competitive. Alternatively, for categories that are capturing even more visits from high income shoppers, the need to satisfy their needs and drive conversion is critical.
Retailers that have won over this group have tapped into the desire for value no matter the level of household income. Walmart executives recently shared that their largest growth in market share came from consumers with income over $100K. Placer’s foot traffic estimates also indicate that, indeed, traffic distribution for households with income over $75K increased in 2024 compared to 2022, with declines in the share of visits by lower income households.
Walmart attributed these changes to their increased premium service offerings, including its membership program and delivery services – but there could also be another element at play. As prices have gone up considerably since the pandemic, even wealthier shoppers don’t want to see their receipts rise on a daily or weekly basis. Price perception can spur changes in consumer behavior, and this can apply to any consumer, no matter their socioeconomic status. Walmart’s success with wealthier cohorts sends a message to others in the industry; just because a consumer can afford to pay higher prices, doesn’t mean they will.
On the other end of the retail spectrum, the luxury retail market is also facing new challenges in regards to their changing consumer base. As we discussed in our overview of the category in January, there has been a consolidation of visits favoring high income households. In reviewing the captured share of visits by household income for luxury apparel and accessories chains, the largest declines came from “aspirational shoppers,” or those who made less than $150K, who might shop for luxury brands less frequently or for a special purchase. With a smaller pool of potential shoppers to pull from, luxury brands can no longer rely on those outside their core base.
The higher concentration of ultra wealthy consumers forces luxury brands to once again center themselves around the in-store experience and competitive advantages. Brands are constantly vying for shoppers' attention, and luxury brands can take full advantage of their store fleets as a way to court consumers. Personal shoppers, services, and private appointments will all become more important for stores to make up for a potential loss in aspirational consumers.
According to Personalive’s window of insight into different socioeconomic consumer cohorts, Ultra Wealthy Families, defined as those with income higher than $200K, also frequent specialty grocery chains, high-end fitness clubs such as Lifetime Fitness and high-end home goods retailers like Restoration Hardware and West Elm. These retailers, similar to luxury apparel and accessories brands, cater directly to high income households, which provides both opportunities for growth and potential hurdles if these consumers change their spending habits.
High income shoppers are quickly becoming the most courted shopper cohort. As retailers look to innovate and open new locations, lucrative neighborhoods with more high-touch services might pave the way for growth. However, the industry, particularly retailers who service middle and low income families, cannot abandon their consumer base in their efforts. With consumers so intrinsically focused on value, even high income consumers can’t be relied on solely to sustain the retail industry.
For more data-driven insights, visit placer.ai
Iconic clothing brand Brooks Brothers – known for dressing presidents – has experienced a challenging few years. The company filed for bankruptcy in 2020 and closed a number of stores – but recent foot traffic suggests that things are turning around for the retailer.
We took a look at the location analytics for the brand to see how it’s been weathering recent challenges.
Brooks Brothers has long been synonymous with high-quality clothing, specializing in office attire – blazers, dress shirts, and tailored trousers. However, the brand faced significant challenges leading up to its Chapter 11 bankruptcy filing in July 2020. Even before the pandemic reshaped work routines, office wear had been trending toward more casual styles. COVID-19, which brought with it a surge in remote work, accelerated this shift even further.
As a response to the bankruptcy, Brooks Brothers implemented a strategic restructuring plan, closing underperforming stores and refocusing on high-traffic locations. This rightsizing strategy appears to be yielding positive results, with visits per location rising 4.7% year-over-year in Q4 2024. While total visits have declined, the remaining stores drew more customers on average, suggesting a more efficient footprint. Now, with the brand even opening new locations – including a flagship store in Boston – Brooks Brothers is signaling renewed confidence in its future.
Store count isn't the only thing changing at Brooks Brothers – its customer base is shifting as well. Between 2019 and 2024, the share of households with children in Brooks Brothers’ captured market trade area increased from 26.5% to 28.0%, while the share of “Suburban Periphery” households (as defined by Esri's Tapestry segmentation dataset) grew from 45.4% to 47.5%.
These shifts align with broader trends, including a renewed interest in suburban living and the rise of the quiet luxury movement, which favors timeless, high-quality fashion. And with back-to-office mandates continuing to ramp up, Brooks Brothers is well-positioned to maintain its momentum with this growing segment.
Despite the rocky economic environment, Brooks Brothers seems to be holding steady. By focusing on its strongest locations and core offerings, the brand may be on its way to a comeback.
For more data-driven retail and apparel insights, visit Placer.ai.
When it comes to home improvement retail, big-box chains like Home Depot and Lowe’s are often top of mind. However, retail visit share data shows that smaller-format chains such as Ace Hardware, Harbor Freight, and Tractor Supply have been outperforming their larger competitors over the past several years.
This trend is primarily driven by store expansion and migration patterns. Ace Hardware and Harbor Freight have aggressively increased their presence in high-growth markets, particularly in smaller cities where their 10,000-20,000 square foot store footprints provide a strategic advantage. In contrast, Home Depot and Lowe’s, with their larger 100,000+ square foot layouts, face greater challenges expanding into these markets.
The success of smaller retailers reflects a broader industry shift toward optimizing store formats, with many retailers—including those in home furnishings, department stores, and grocery – embracing smaller stores to mitigate rising operational costs and respond to evolving consumer migration trends.
We’ve seen mall operators investing in tenants, such as when Simon and Brookfield invested in JCPenney. Of late, outlet operators such as Tanger are scooping up open-air mixed use centers. Walmart’s latest move to purchase Monroeville Mall in Allegheny, PA is also turning heads. What do all these purchases have in common? A desire to diversify.
Over the years, Walmart has experimented beyond retail by adding grocery, optical, pharmacy, and healthcare. Walmart is now working on the Monroeville Mall with Cypress Equities, who position themselves as partners for “distinctive retail, residential, hospitality and mixed-use opportunities.’’ Analyzing visits to some of their properties – including Bayshore Mall in Glendale, WI and Legacy Square in Linden, NJ – reveals Cypress’ strong track record in managing successful shopping centers.
Legacy Square in particular saw impressive visit growth in 2024 – perhaps thanks to Cypress Equity’s investments in the center’s recent renovation. The project included opening a Walmart supercenter anchor followed by the addition of popular retailers and dining chains as well as a c-store and a medical facility – services that are increasingly coming to mixed-use centers.
And the data suggests that the redevelopment has been a success: In 2024, a variety of retailers and dining chains at Legacy Square – including Walmart, Starbucks, Verizon, and Mattress Firm – received significantly more visits per square foot than the New Jersey statewide average for each chain. The success of the Legacy Square redevelopment sheds some light on Walmart’s choice to partner with Cypress Equities on the Monroeville mall project.
The current performance at Monroeville Mall shows that visitation to the mall has declined most months compared to last year, with the exception of November when visits were likely boosted by a strong Black Friday.
At the same time, the mall’s trade area includes a wide array of consumer segments – from budget conscious singles to affluent families to middle income older folks – suggesting that the mall has significant potential to increase its visitations from a variety of audience segments.
Walmart's strategic acquisition and redevelopment of Monroeville Mall, in partnership with Cypress Equities, reflects a broader industry trend towards diversification and the creation of mixed-use destinations. By leveraging Cypress's proven success in revitalizing properties like Legacy Square, Walmart may well transform a struggling mall into a thriving community hub, catering to a diverse demographic and further solidifying its position in the evolving retail landscape.
It almost feels like a throwback to the COVID era, with more people raising backyard chickens – but this time, it’s driven by skyrocketing egg prices due to bird flu. So, what’s the trickle-down effect on food and retail establishments? Breakfast-focused restaurants, where eggs are a staple – from classic dishes like eggs with bacon, sausage, potatoes, and toast to essential ingredients in pancakes and waffles – are feeling the impact most acutely.
According to a recent USDA report, retail egg prices increased by 13.8% in January 2025, following an 8.4% rise in December 2024. The agency has now revised upwards its initial forecast of a 20% increase in egg prices for 2025 and now projects a 41.1% rise for the year. Data from the U.S. Bureau of Labor Statistics on the average price of a dozen large Grade A eggs also highlights the significant nature of this recent price surge from a historical perspective.
To offset this unprecedented surge in egg prices, several breakfast chains have implemented surcharges on egg-based menu items in February. Waffle House introduced a 50-cent surcharge per egg across all its locations. Similarly, Denny's added surcharges across its 1,500 locations, with fees varying based on regional impacts. Other establishments, such as Biscuitville, also imposed similar surcharges to manage escalating expenses. These measures reflect the industry's efforts to navigate the financial strain caused by the egg shortage while striving to maintain menu affordability for customers.
Broadly speaking, foot traffic across much of the retail and dining sector declined as February progressed, likely due to factors such as post-holiday spending pullbacks, decreased consumer confidence, weather, and other macroeconomic conditions. However, breakfast-first chains–including IHOP, Denny’s, Waffle House, Broken Yolk Cafe, Huddle House, Bob Evans Restaurant, Another Broken Egg Cafe, and Silver Diner have underperformed other retail and restaurant chains in our Placer 100 index.
Year-to-date weekly visitation trends for the largest breakfast-focused chains show that First Watch and Silver Diner are the only brands with positive year-over-year growth. In contrast, chains that implemented egg price surcharges like Waffle House and Denny’s have understandably underperformed compared to the broader category.
Silver Diner and First Watch also pull visitors from higher-income trade areas (below), which allows them to absorb costs more effectively without risking a decline in visitation.
The surge in egg prices, which has compelled many breakfast chains to introduce surcharges, already seems to be having an impact on visitation trends to egg-forward restaurant chains. Dining concepts catering to higher-income consumers – or those less reliant on breakfast visitation – are likely to have more success weathering the current challenges.
For more data-driven dining insights, visit placer.ai.
The Fitness industry was a major post-pandemic winner. Visits to gyms across the country surged as stay-at-home orders ended and people returned to their in-person workout routines. And even as consumers reduced discretionary spending in the face of inflation, they kept going to the gym – finding room in their budgets for the chance to embrace wellness and get in shape while interacting with other people.
But no category can sustain such unabated growth forever – and as the segment inevitably stabilizes, gyms will need to stay nimble on their feet to maintain their competitive edge.
This white paper takes a closer look at the state of Fitness as the category transitions into a more stable growth phase following two years of outsize post-pandemic demand. The report digs into the location analytics to reveal how the Fitness space has changed – and what strategies gyms can adopt to stay ahead of the pack.
*This report excludes locations within Washington state due to local legislation.
Monthly visits to the Fitness category have grown consistently year over year (YoY) since early 2022, when COVID subsided and gyms returned to full capacity. And the segment is still doing remarkably well. Even in January and March 2024 – when visits were curtailed by an Arctic blast and by the Easter holiday weekend – YoY Fitness visits remained positive, despite the comparison to an already strong 2023.
Still, recent months have seen smaller YoY increases than last year, indicating that the Fitness category is entering a more normalized growth phase.
By keeping a close watch on evolving consumer preferences, fitness chains can uncover new opportunities for growth and adaptation within a stabilizing market – including leaning into increasingly popular dayparts.
Examining the evolving distribution of gym visits by daypart over the past six years shows that major shifts were brought on by the COVID-19 pandemic.
Between Q1 2019 and Q1 2021, as remote work took hold, gyms saw their share of 2:00 PM - 5:00 PM visits increase from 15.8% to 18.6%. Though this trend partially reversed as the pandemic receded, afternoon visits remained elevated in Q1 2024 compared to pre-COVID – likely a reflection of hybrid work patterns that leave people free to take an exercise break during their workdays.
At the same time, the share of morning visits to fitness chains (between 8:00 AM and 11:00 AM) dropped from 20.5% in Q1 2019 to 17.2% in Q1 2024, while evening visits (between 8:00 PM and 11:00 PM) increased from 11.3% to 13.2%.
Gyms that recognize this changing behavior can adapt to new workout preferences – whether by incentivizing morning visits, scheduling popular classes mid-afternoon, or offering extended evening hours.
In fact, the data indicates that gyms that are leaning into the evening workout trend are already finding success: Of the top 12 most-visited gym chains in the country, those that saw bigger increases in their shares of evening visits also tended to see greater YoY visit growth.
EōS Fitness and Crunch Fitness, for example, have seen their shares of evening visits grow by 5.5% and 3.4%, respectively, since COVID – and in Q1 2024, their YoY visits grew by 29.0% and 21.8%, respectively. Other chains, including 24 Hour Fitness and Chuze Fitness, experienced similar shifts in visit patterns. At the same time, LA Fitness saw just a minor increase in its share of evening visits between Q1 2019 and Q1 2024, and a correspondingly small increase in YoY visits.
As the evening workout slot gains popularity, gym operators that can adapt to these new trends and encourage evening visits may see significant benefits in the years to come.
Diving into demographic data for the analyzed gym chains sheds light on some factors that may be driving this heightened preference for evening workouts at top-performing gyms.
The four fitness chains that experienced the greatest YoY visit boosts in Q1 – Crunch Fitness, EōS Fitness, 24 Hour Fitness, and Chuze Fitness – all featured trade areas with significantly higher-than-average shares of Young Professionals and Non-Family Households. (STI: PopStat’s Non-Family Household segment includes households with more than one person not defined as family members. Spatial.ai: PersonaLive’s Young Professional consumer segment includes young professionals starting their careers in white collar or technical jobs.)
In plainer terms, these consumer segments – typically young, well-educated, and without children – and therefore more likely to be flexible in their workout times – are driving visits to some of the best-performing gyms across the country. And these audiences seem to be displaying a preference for nighttime sweat sessions – a factor that gyms can take into account when planning programming and marketing efforts.
Leaning into emerging gym visitation patterns is one way for fitness chains to thrive in 2024 – but it isn’t the only marker of success for the segment. Even after years of visit growth, the market remains open to new opportunities and innovations that meet health-conscious consumers where they are.
STRIDE Fitness, a gym that offers treadmill-based interval training, has sparked a trend among running enthusiasts. This niche player is finding success, particularly among a specific demographic: runners and endurance training enthusiasts.
Between January and April 2024, monthly YoY visits to STRIDE Fitness consistently outperformed the wider Fitness space. A standout month was January, when STRIDE Fitness’s visits soared by an impressive 33.6% YoY, surpassing the industry average of 5.7% for the same period.
Psychographic data from the Spatial.ai’s FollowGraph dataset – which looks at the social media activity of a given audience – suggests that STRIDE Fitness’ trade areas are well-positioned to attract those visitors most open to its offerings. Residents of STRIDE Fitness’s potential market are 24% more likely to be, or to be interested in, Endurance Athletes than the nationwide average – compared to just 3% for the Fitness industry as a whole. Similar patterns emerge for Marathon Runners and Triathlon Participants. This indicates that the chain is well-situated near consumers with a passion for endurance sports and long distance running, helping it maintain a competitive edge in the crowded gym market.
Pickleball, a game that blends elements of tennis, ping pong, and badminton, is the fastest-growing sport in the country. And recognizing its broad appeal, some fitness chains have begun incorporating pickleball courts into their facilities.
Arizona-based EōS Fitness added a pickleball court at a Phoenix, AZ location – and early 2024 data highlights the impact of this addition. Between January and April 2024, the location drew between 9.1% and 33.3% more monthly visits than the chain’s Arizona visit-per-location average.
And analyzing the demographic profile of the chain’s location with a pickleball court reinforces the game’s increasingly wide appeal. Young consumer segments have been embracing the game in large numbers – and the Phoenix EōS Fitness location’s potential market includes a significantly higher share of 18 to 34-year-olds than the chain’s overall Arizona potential market. Residents of the pickleball location’s trade area are also less affluent than the chain’s Arizona average.
Pickleball has typically been associated with more affluent consumer segments, and it seems like this may be shifting. With more people than ever embracing the game, gyms that choose to add courts to their facilities may reap the foot traffic benefits.
The Fitness industry has undergone a significant transformation since COVID-19. The category’s outsize post-pandemic visit growth has begun to stabilize, and gyms are staying ahead by adapting to changing consumer preferences. Evenings are emerging as crucial dayparts for gym operators, likely driven by younger consumer segments. And niche fitness chains are seeing visit success, proving that there are plenty of ways for the Fitness segment to succeed.
This report includes data from Placer.ai Data Version 2.0, which implements improvements to our extrapolation capabilities, adds short visit monitoring, and enhances visit detection.
Grabbing a coffee or snack at a convenience store is a time-honored road trip tradition – but increasingly, Convenience Stores (C-Stores) have also emerged as places people go out of their way to visit.
Convenience stores have thrived in recent years, making inroads into the discretionary dining space and growing both their audiences and their sales. Between April 2023 and March 2024, C-Stores experienced consistent year-over-year (YoY) visit growth, generally outperforming Overall Retail. Unsurprisingly, C-Stores fell behind Overall Retail in November and December 2023, when holiday shoppers flocked to malls and superstores to buy gifts for loved ones. But in January 2024, the segment regained its lead, growing YoY visits even as Overall Retail languished in the face of an Arctic blast that had many consumers hunkering down at home.
C-Stores’ current strength is partially due to the significant innovation by leading players in the space: Chains like Casey’s, Maverik, Buc-ee’s, and Rutter’s are investing in both in their product offerings and in their physical venues to transform the humble C-Store from a stop along the way into a bona fide destination. Dive into the data to explore some of the key strategies helping C-Stores drive consumer engagement and stay ahead of the pack.
While chain expansion may explain some of the C-Store segment growth, a look at visit-per-location trends shows that demand is growing at the store level as well. Over the past year (April 2023 to March 2024), average visits per location on an industry-wide basis grew by 1.8%, compared to the year prior (April 2022 to 2023).
And within this growing segment, some brands are distinguishing themselves and outperforming category averages. Casey’s, for example, saw the average number of visits to each of its locations increase by 2.3% over the same time frame – while Maverik, Buc-ee’s and Rutter’s saw visits per location increase by 3.2%, 3.4% and 3.9%, respectively.
Each in its own way, Casey’s, Maverik, Buc-ee’s, and Rutter’s, are helping to transform C-Stores from pit stops where people can stretch their legs and grab a cup of coffee to destinations in and of themselves.
Midwestern gas and c-store chain Casey’s – famous for its breakfast pizza and other grab-and-go breakfast items – has emerged as a prime spot for fast food pizza lovers to grab a slice first thing in the morning. And Salt Lake City, Utah-based Maverik – which recently acquired Kum & Go and its 400-plus stores – is also establishing itself as a breakfast destination thanks to its specialty burritos and other chef-inspired creations.
Casey’s and Maverik’s popular breakfast options are likely helping the chains receive its larger-than-average share of morning visits: In Q1 2024, 16.3% of visits to Maverik and 17.5% of visits to Casey’s took place during the 7:00 AM - 10:00 AM daypart, compared to just 14.9% of visits to the wider C-Store category.
Psychographic data from the Spatial.ai’s FollowGraph dataset – which looks at the social media activity of a given audience – also suggests that Casey’s and Maverik’s have opened stores in locations that allow them to reach their target audience. Compared to the average consumer, residents of Casey’s potential market are 7% more likely to be “Fast Food Pizza Lovers” than both the average consumer and the average C-Store trade area resident. Residents of Maverik’s potential market are 16% more likely than the average consumer to be “Mexican Food Enthusiasts,” compared to residents of the average C-Store’s trade area who are only 1% more likely to fall into that category.
With both chains expanding, Casey’s and Maverik can hope to introduce new audiences to their unique breakfast options and solidify their hold over the morning daypart within the C-Store space over the next few years.
Everything is said to be bigger in the Lone Star State, and Texas-based convenience store chain Buc-ee’s – holder of the record for the worlds’ largest C-Store – is no exception. With a unique array of specialty food items and award-winning bathrooms, Buc-ee’s has emerged as a well-known tourist attraction. And the popular chain’s status as a visitor hotspot is reflected in two key metrics.
First, Buc-ee’s attracts a much greater share of weekend visits than other convenience store chains. In Q1 2024, 39.6% of visits to Buc-ee’s took place on the weekends, compared to just 28.3% for the wider C-Store industry. And second, Buc-ee’s captured markets feature higher-than-average shares of family-centric households – including those belonging to Experian: Mosaic’s Suburban Style, Flourishing Families, and Promising Families segments.
Rather than merely a place to stop on the way to work, Buc-ee’s has emerged as a favored destination for families and for people looking for something fun to do on their days off.
Buc-ee’s isn’t the only C-Store chain that believes bigger is better. Pennsylvania-based Rutter’s is increasing visits and customer dwell time by expanding its footprint – both in terms of store count and venue size. New stores will be 10,000 to 12,000 square feet – significantly larger than the industry average of around 3,100 square feet. And in more urban areas, where space is at a premium, the company is building upwards.
Rutter’s added a second floor to one of its existing locations in York, PA in December 2023. The remodel, which was met with enthusiasm by customers, provided additional seating for up to 30 diners, a beer cave, and an expanded wine selection. And in Q1 2024, the location experienced 15.6% YoY visit growth – compared to a chainwide average of 7.6%. Visitors to the newly remodeled Rutter’s also stayed significantly longer than they did pre-renovation. The share of extended visits to the store (longer than ten minutes) grew from 20.8% in Q1 2023 to 27.0% in Q1 2024 – likely from people browsing the chain’s selection of beers or grabbing a bite to eat.
Convenience stores are flourishing, transforming into some of the most exciting dining and tourist destinations in the country. Today, C-Store customers can expect to find brisket sandwiches, gourmet coffees, or craft beers, rather than the stale cups of coffee of old. And the data shows that customers are receptive to these innovations, helping drive the segment’s success.
The first quarter of 2024 was generally a good one for retailers. Though unusually cold and stormy weather left its mark on the sector’s January performance, February and March saw steady year-over-year (YoY) weekly visit growth that grew more robust as the quarter wore on.
March ended on a high note, with the week of March 25th – including Easter Sunday – seeing a 6.1% YoY visit boost, driven in part by increased retail activity in the run-up to the holiday. (Last year, Easter fell on April 9th, 2023, so the week of March 25th is being compared to a regular week.)
Though prices remain high and consumer confidence has yet to fully regain its footing, retail’s healthy Q1 showing may be a sign of good things to come in 2024.
Drilling down into the data for leading retail segments demonstrates the continued success of value-priced, essential, and wellness-related categories.
Discount & Dollar Stores led the pack with 11.2% YoY quarterly visit growth, followed by Grocery Stores, Fitness, and Superstores – all of which outperformed Overall Retail. Dining also enjoyed a YoY quarterly visit bump, despite the segment’s largely discretionary nature. And despite the high interest rates continuing to weigh on the housing and home renovation markets, Home Improvement & Furnishings maintained just a minor YoY visit gap.
Discount & Dollar Stores experienced strong YoY visit growth throughout most of Q1 – and as go-to destinations for groceries and other other essential goods, they held their own even during mid-January’s Arctic blast. In the last week of March, shoppers flocked to leading discount chains for everything from chocolate Easter bunnies to basket-making supplies – driving a remarkable 21.5% YoY visit spike.
Dollar General continued to dominate the Discount & Dollar Store space in Q1, with visits to its locations accounting for nearly half of the segment’s quarterly foot traffic (44.7%). Next in line was Dollar Tree, followed by Family Dollar and Five Below. Together, the four chains – all of which experienced positive YoY quarterly visit growth – drew a whopping 91.6% of quarterly visits to the category.
Rain or shine, people have to eat. And like Discount & Dollar Stores, traditional Grocery Stores were relatively busy through January as shoppers braved the storms to stock up on needed items. Momentum continued to build throughout the quarter, culminating in a 10.5% foot traffic increase in the week ending with Easter Sunday.
Like in other categories, it was budget-friendly Grocery banners that took the lead. No-frills Aldi drove a chain-wide 24.4% foot traffic increase in Q1, by expanding its fleet – while also growing the average number of visits per location. Other value-oriented chains, including Trader Joe’s and Food Lion, experienced significant foot traffic increases of their own. And though conventional grocery leaders like H-E-B, Kroger, and Albertsons saw smaller visit bumps, they too outperformed Q1 2023 by meaningful margins.
January is New Year’s resolution season – when people famously pick themselves up off the couch, dust off their trainers, and vow to go to the gym more often. And with wellness still top of mind for many consumers, the Fitness category enjoyed robust YoY visit growth throughout most of Q1 – despite lapping a strong Q1 2023.
Predictably, Fitness’s visit growth slowed during the last week of March, when many Americans likely indulged in Easter treats rather than work out. But given the category’s strength over the past several years, there is every reason to believe it will continue to flourish.
For Fitness chains, too, cost was key to success in Q1 – with value gyms experiencing the biggest visit jumps. EōS Fitness and Crunch Fitness, both of which offer low-cost membership options, saw their Q1 visits skyrocket 28.9% and 22.0% YoY, respectively – helped in part by aggressive expansions. At the same time, premium and mid-range gyms like Life Time and LA Fitness are also finding success – showing that when it comes to Fitness, there’s plenty of room for a variety of models to thrive.
Superstores – including wholesale clubs – are prime destinations for big, planned shopping expeditions – during which customers can load up on a month’s supply of food items or stock up on home goods. And perhaps for this reason, the category felt the impact of January’s inclement weather more than either dollar chains or supermarkets – which are more likely to see shoppers pop in as needed for daily essentials.
But like Grocery Stores and Discount & Dollar Stores, Superstores ended the quarter with an impressive YoY visit spike, likely fueled by Easter holiday shoppers.
As in Q4 2023, membership warehouse chains – Costco Wholesale, BJ’s Wholesale Club, and Sam’s Club – drove much of the Superstore category’s positive visit growth, as shoppers likely engaged in mission-driven shopping in an effort to stretch their budgets. Still, segment mainstays Walmart and Target also enjoyed positive foot traffic growth, with YoY visits up 3.9% and 3.5%, respectively.
Moving into more discretionary territory, Dining experienced a marked January slump, as hunkered-down consumers likely opted for delivery. But the segment rallied in February and March, even though foot traffic dipped slightly during the last week of March, when many families gathered to enjoy home-cooked holiday meals.
Coffee Chains and Fast-Casual Restaurants saw the largest YoY visit increases, followed by QSR – highlighting the enduring power of lower-cost, quick-serve dining options. But Full-Service Restaurants (FSR) also saw a slight segment-wide YoY visit uptick in Q1 – good news for a sector that has yet to bounce back from the one-two punch of COVID and inflation. Within each Dining category, however, some chains experienced outsize visit growth – including favorites like Dutch Bros. Coffee, Slim Chickens, In-N-Out Burger, and Texas Roadhouse.
Since the shelter-in-place days of COVID – when everybody had their sourdough starter and DIY was all the rage – Home Improvement & Furnishings chains have faced a tough environment. Many deferred or abandoned home improvement projects in the wake of inflation, and elevated interest rates coupled with a sluggish housing market put a further damper on the category.
Against this backdrop, Home Improvement & Furnishings’ relatively lackluster Q1 visit performance should come as no surprise. But the narrowing of the visit gap in March – which also saw one week of positive visit growth – may serve as a promising sign for the segment. (The abrupt foot traffic drop during the week of March 25th, 2024 is likely a just reflection of Easter holiday shopping pattern.)
Within the Home Improvement & Furnishings space, some bright spots stood out in Q1 – including Harbor Freight Tools, which saw visits increase by 10.0%, partly due to the brand’s growing store count. Tractor Supply Co., Menards, and Ace Hardware also registered visit increases.
January 2024’s stormy weather left its mark on the Q1 retail environment, especially for discretionary categories. But as the quarter progressed, retailers rallied, with healthy YoY foot traffic growth that peaked during the last week of March – the week of Easter Sunday. All in all, retail’s positive Q1 performance leaves plenty of room for optimism about what’s in store for the rest of 2024.
