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In December 2023, Placer.ai released the white paper: The Retail Opportunity of Stadiums. Below is a taste of our findings. To read more data-driven consumer research, visit our resource library.
While every stadium provides a similar core of traditional game day eats, each venue also offers a unique set of dining options, both on- and off-premise. The visitor bases of the various venues also exhibit unique dining tastes – a reminder that no customer or fan base is alike. Aligning on- or off-site dining options with offerings that align with a given customer base’s preferences can improve overall visitor satisfaction and boost revenues.
The chart below shows the share of visitors coming to a stadium from a dining venue (on the x-axis) or going to a dining venue after visiting the stadium (on the y-axis). The data reveals a correlation between pre-stadium dining and post-stadium dining – stadiums where many guests visit dining venues before the stadium also tend to have a large share of guests going to dining venues after the event. For example, the AT&T Stadium in Arlington, Texas, saw large shares of visitors grabbing a bite to eat on their journey to or from the stadium, while the M&T Bank Stadium in Baltimore, Maryland saw low rates of pre- and post stadium dining engagement.
These trends present opportunities for both local businesses and stadium stakeholders. For example, venues with high dining engagement can explore partnerships with local restaurants, while those with lower rates can build out their in-house dining options for hungry sports fans.
Stadiums looking to enhance their food offerings – or local entrepreneurs thinking of opening a restaurant near a stadium – can also get inspired by stadium visitors’ dining preferences. For example, psychographic data taken from the Spatial.ai: FollowGraph dataset reveals that visitors to MetLife Stadium in East Rutherford, New Jersey have a much stronger preference for Asian cuisine compared to New Jersey residents overall. With that knowledge, the stadium can enhance the visitor experience by expanding its Asian food offerings.
On the other hand, MetLife Stadium goers seem much less partial to Brewery fare than average New Jerseyans, so the stadium operators and restaurateurs may want to avoid offering too many Brewery-themed dining options. Stadium stakeholders can reserve the craft beers for Caesars Stadium, M&T Bank Stadium, and Soldier Field Stadiums, where visitors seem to enjoy artisanal brews more than the average resident in Louisiana, Maryland, and Illinois, respectively.
Sports leagues like the NBA, NFL, and MLB boast billion-dollar revenues – and the venues where these games unfold hold significant commercial potential in their own rights. Stadium operators, restaurateurs, and other stakeholders can leverage location intelligence and analyze visitor behavior outside the stadiums to understand visit patterns and consumer preferences during games and in the off-season.
Read the full report here to discover more stadium insights. For more data-driven consumer research, visit our resource library.
Urban Outfitters, Inc., operates several apparel banners, including Anthropologie and the eponymous Urban Outfitters. Both brands sell bohemian-style women’s apparel and home goods, although Urban Outfitters’ selection is slightly more eclectic and also includes menswear. Location intelligence indicates that both brands have stores in areas that have the potential to attract similar types of shoppers – but in practice, the two chains’ audiences look rather different.
To better understand the contrast between the two chains, we dove into the demographic and psychographic data of Urban Outfitters’ and Anthropologie’s trade areas.
Location analytics can be used to analyze a chain’s area through two different methods. The potential market trade area focuses on the demographic and psychographic makeup of the Census Block Groups (CBGs) making up the trade area, with each CBG weighted according to the population size of that CBG. The captured market trade area, on the other hand, weighs the CBGs within the trade area according to the number of visits received by the chain from each CBG. So while a potential market analysis can show the types of visitors that a chain can reach on the basis of the geographic location of the chain’s venues, the captured market reveals the audience segments within the potential trade area that actually visit the chain in practice.
For example, the median HHI for both Anthropologie and Urban Outfitters is higher in the captured market than in the potential market. This means that both brands attract visits from the higher-income households within their potential trade area.
The data also indicates that both chains have a relatively similar potential market median HHI, so both chains can reach customers with relatively similar income levels, given their store fleet configuration: Anthropologie’s potential market median HHI is only 5.5% higher than Urban Outfitters’ ($84.7K vs. $80.3K). But in practice, Anthropologie visitors tend to come from much more affluent households than Urban Outfitters visitors, with Anthropologie’s captured market median HHI 17.3% higher than Urban Outfitters’ ($103.6K vs. $88.3K).
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Looking at the household types in Anthropologie and Urban Outfitters’ potential markets reinforces how the two chains have the potential to draw a relatively similar visitor base. Anthropologie’s and Urban Outfitters’ potential trade areas have 38.5% and 38.8% of one-person and non-family (i.e. roommate) households, respectively, and 26.6% and 26.5% of households with children.
In practice, however, Anthropologie tends to attract more households than Urban Outfitters from family-friendly neighborhoods – the share of households with children in its captured market stands at 26.3%, compared with 23.6% for Urban Outfitters’ captured market. Meanwhile, Urban Outfitters seems to be more popular among visitors from one-person and non-family households, with 43.5% of its captured market belonging to this segment, compared to 38.5% of Anthropologie’s captured market.
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Analyzing the captured and potential markets of Anthropologie and Urban Outfitters from a psychographic perspective also reveals differences between the two brands that align with the demographic profiles in the chains’ trade areas. Anthropologie tends to attract more suburban visitors – including shoppers belonging to Spatial.ai PersonaLive’s “Booming with Confidence” segment. Meanwhile, Urban Outfitters draws more Singles & Starters than Anthropologie in both its captured and potential trade area.
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The differences between the makeup of Athropologie’s and Urban Outfitters’ potential and captured market indicate that a chain’s site selection strategy is not the only factor impacting who visits the chain’s stores in practice.
Both Anthropologie and Urban Outfitters have relatively similar psychographics and demographics in their potential trade areas, meaning that – based solely on the location of their stores – both brands’ stores have the potential to reach the same types of shoppers. But the demographics and psychographics in the captured markets are distinct, indicating that even stores carrying similar sorts of products and located in similar areas can use contrasting branding, price-points, and other factors to draw in the desired target audience.
For more data-driven retail insights, visit placer.ai/blog.
Hot on the heels of the burrito’s emergence as America’s favorite dish in 2022 – edging out even the iconic cheeseburger – spicy potato tacos rocked Grubhub’s list of 2023’s top five spicy food orders.
So with the new year upon us, we dove into the data to check in with three steadily-expanding taco chains that are likely to continue making waves this year: Bartaco, Condado Tacos, and El Vaquero. Each of the three chains fills a somewhat different niche, and each of them is growing – showing that despite the challenges facing the restaurant industry, there’s a hot market for taco chains that hit the sweet spot with the right food and ambiance.
Bartaco, the upscale eatery known for its beach-like vibe, specialty cocktails, and eclectic street food menu, is a taco restaurant with a twist. The diverse menu includes everything from falafel tacos to glazed pork belly rice bowls. And while guac and chips are on offer, hungry diners can also indulge in kale caesar salad or Korean-style kimchi. Over the past several years, Bartaco has expanded its fleet – and the restaurant now boasts some 29 locations across 12 states (and Washington, D.C).
Condado Tacos is another popular restaurant that has grown its footprint in recent years. The “come as you are” casual-dining chain known for its funky art decor now features some 49 locations across 10 states – 20 of them in Ohio. And with plans to open 90-100 restaurants by 2026, the chain is on a roll. Customers can build their own tacos with fillings like Thai Chili Tofu or Tequila-Lime Steak, or choose one of the menu’s tempting suggestions. And like Bartaco, Condado Tacos offers a variety of cocktails – including seasonal choices like the Harvest Pear Marg.
And location intelligence shows that the expansion of both chains is meeting growing demand. Visits to Bartaco and Condado Tacos have risen steadily over the past two years, reaching a respective 52.2% and 52.9% growth in Q4 2023 relative to Q1 2022.
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Ohio is also home to El Vaquero – a Mexican chain with 18 locations in the Buckeye State and two more in Michigan. El Vaquero, which has also expanded over the past several years, saw foot traffic rise 4.8% in Q4 2023 compared to the equivalent period of 2022. And with a menu that includes everything from nachos to huevos con chorizo, it’s no wonder the chain has emerged as a local favorite.
Like Bartaco and Condado Tacos, El Vaquero has a rich cocktail menu, as well as a varied selection of wines and beers. And while the chain’s offerings certainly draw crowds throughout the year, El Vaquero really goes crazy on Cinco de Mayo, the May 5th commemoration of Mexico's victory over Napoleon in 1862. El Vaquero marks the occasion with a five-day special menu and an all-day happy hour on Cinco de Mayo itself. And on May 5th, 2023, El Vaquero experienced its busiest day of the year by far, drawing a remarkable 200.2% more visitors than it did, on average, during April and May 2023.
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Drilling down into the data for Bartaco, Condado Tacos, and El Vaquero shows that despite their differences, the three chains experience similar hourly visitation patterns. All three are busiest in the evenings – but while El Vaquero and Condado Tacos peak between 6:00 PM and 8:00 PM, Bartaco peaks somewhat later, between 7:00 PM and 9:00 PM. Bartaco also stays busier into the 9:00 PM – 10:00 PM time slot.
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Bartaco’s, Condado Tacos’, and El Vaquero’s evening draw may be due, in part, to the special appeal they hold for singles: The captured markets of all three chains feature significant shares of one-person households – and in the case of Bartaco and Condado Tacos, smaller concentrations of families with children. (For El Vaquero, the proportion of households with children is on par with that of single-person households). Of the three, the more upscale Bartaco boasts the highest share of single-person households – and the lowest share of parental ones – perhaps explaining its later visit peak and greater late-night engagement.
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Mexican food has arisen as a preferred cuisine for many consumers. And even in today’s challenging economic environment, brands that can offer a winning combination of good food, nice cocktails, and a welcoming atmosphere are poised to thrive. How will Bartaco, Condado Tacos, and El Vaquero continue to fare in the new year? And what lies in store for the wider taco restaurant space in the months to come?
Follow Placer.ai’s data-driven dining analyses to find out.
High food-away-from-home prices weighed on the dining sector in 2023. But affordable indulgences were the name of the game – and for plenty of people, their daily caffeine fix remained non-negotiable.
So with the new year gathering steam, we dove into the data to explore consumer trends impacting Starbucks and Dunkin’ in 2023. What were the biggest days of the year for the two chains? And who were the java enthusiasts driving visits to the two chains last year?
The first Friday of every June is National Donut Day, an event first kicked off by the Salvation Army in the 1930’s to honor folks that served doughnuts to soldiers during the First World War. Every year, Dunkin’ marks the occasion with – you guessed it – free doughnuts, and this year wasn’t any different. On June 2, 2023, Dunkin’ fans were invited to snag a delicious free treat with the purchase of any beverage, and customers turned out in droves.
The day turned out to be the busiest one of the year, with Dunkin’ locations seeing a 49.4% increase in foot traffic compared to the chain’s 2023 daily average. And after a couple of years when the occasion garnered somewhat less turnout, National Donut Day appears to be very much on track to regain its pre-COVID glory (The last time National Donut Day was the busiest day of the year was in 2019). Friends, it seems, really don't let friends miss out on free doughnuts.
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Like many restaurant and coffee chains, Starbucks tends to be busiest on Saturdays. And in 2023, the popular coffee chain drew its biggest crowds on November 4th – the first Saturday after the launch of the eagerly-anticipated holiday menu. With mouth-watering offerings like Chestnut Praline Latte and Iced Gingerbread Oatmeal Chai, it’s no wonder customers can’t wait to indulge – especially when they can top off their drink with a Snowman Cookie or a Peppermint Brownie Cake Pop. (Luckily, the menu launch comes before those pesky new year’s resolutions.)
Starbucks’ second-busiest day of the year in 2023 was Black Friday (November 24th), as shoppers sought a quick way to fuel up or get a caffeine boost while they hit the stores. And the chain’s third-busiest day of the year was August 26th – the first Saturday after the annual release of Starbucks’ calendar-owning Pumpkin Spice Latte, a tradition that never fails to drive excitement – and foot traffic.
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But who were the customers that fueled Starbucks’ and Dunkin’s foot traffic in 2023? Analyzing the two chains’ captured markets with psychographics from Spatial.ai shows that while each of them attracted a somewhat different audience, they both drew diverse crowds throughout the year.
Starbucks, which features a cozy ambiance that encourages people to stay a while, has emerged as a popular WFH spot – and is more likely than Dunkin’ to be frequented by Young Professionals. The doughnut leader, on the other hand, boasts a to-go vibe, and draws greater shares of Suburban Boomers and Rural High-Income customers. Still, the data shows that coffee consumption is far from a zero-sum game, and in 2023, both chains attracted healthy shares of each of the analyzed segments.
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In addition, while Starbucks customers tend to hail from more affluent areas than Dunkin’ fans, the median household income (HHI) of each chain’s customer base varied considerably by region last year – as did the extent of the HHI gap between the two chains.
Starbucks’ most affluent customer base was in New England, where the median HHI of its captured market stood at $90.7K – a significant 19.2% higher than that of Dunkin’s ($75.8K). But in the Pacific region, including California, Dunkin’s captured market had a median HHI of $83.2K, just 2.1% lower than that of Starbucks.
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“Coffee, coffee, coffee!” may be a bit from Gilmore Girls, but it’s also a way of life for millions of Americans. And location data shows that in 2023, there was plenty of love to go around for coffee leaders like Starbucks and Dunkin’.
How will National Donut Day and Starbucks’ holiday menu play out in 2024? And what does the new year have in store for the coffee space more generally?
Follow Placer.ai’s data-driven analyses to find out.
In the spring of 2023, the surgeon general released an alarming report about the epidemic of loneliness in the US, which has negative implications on our physical, social, and emotional health such as “a 29% increased risk of heart disease, a 32% increased risk of stroke, and a 50% increased risk of developing dementia for older adults. Additionally, lacking social connection increases risk of premature death by more than 60%.” Among his six recommendations to combat this, the number one idea was to “Strengthen Social Infrastructure: Connections are not just influenced by individual interactions, but by the physical elements of a community (parks, libraries, playgrounds) and the programs and policies in place. To strengthen social infrastructure, communities must design environments that promote connection, establish and scale community connection programs, and invest in institutions that bring people together.” We’ve written at length about how malls are becoming one of the old-but-new gathering places for Gen Z and how pickleball is a new craze that has been bringing people together. Let’s take a look now at how some parks and recreation centers serve their communities as well as the vision for one mall redeveloper, who held town halls and numerous local meetings in order to understand the needs of the community.
First up is Brooklyn Bridge Park. This 85- acre park resides on the Brooklyn side of the East River in New York City. It has revitalized 1.3 miles of Brooklyn’s post-industrial waterfront. Among its many offerings are playgrounds, athletic fields, a roller-skating rink, fitness equipment, kayak and canoe launch sites, and basketball, bocce, handball, and beach volleyball courts.
There’s certainly a seasonal element to park visitation, with visits increasing into the spring and peaking in the summer.
Late afternoon into the evening tends to be when most people visit the park.
It appears most visitors enjoy their park outing with hamburgers, some shopping, pizza, and ice cream with Shake Shack the top destination before and after visiting.
While Educated Urbanites and Young Urban Singles make up the majority of segments, the park attracts a broad range of additional segments, ranging from Ultra Wealthy Families to Urban Low Income. Another fun fact about this park is that it is financially self-sustaining, due to the fact that 10% of the parkland was set aside for development, which sustains 90% of the park’s operating budget.
Speaking of Brooklyn, we now turn our attention to a Dallas-based developer, Peter Brodsky, who originally hails from Brooklyn. He purchased the Redbird Mall in South Dallas in 2015 and incorporated much community feedback to understand what the residents in the area wanted, such as jobs, health care, grocers, restaurants, and a Starbucks. It’s currently under development as The Shops at RedBird, and incorporating trends we’ve highlighted in previous Anchor articles, such as mixed-use, with a new apartment complex on the grounds of an ex-parking lot; a Courtyard Marriott hotel to follow; two health care providers--Parkland and UT Southwestern-- taking over Dillard’s and Sears further reinforcing our bullishness on malls and healthcare; and on the second floor a call center operator that employs two thousand workers with plans for more. Below, we show a birds-eye view plan for this exciting new development. Plus, there is a one-acre lawn for community events.
Like almost all malls, these shops saw a dip during the pandemic, but since then traffic has perked up.
When we look at year-over-year change from the surrounding zip codes, we see a fair amount of growth coming from the south and the farther western direction.
Using Jan 1, 2023 as a baseline, the overall shopping center as well as some of the major tenants like Starbucks, Burlington, and Foot Locker show a positive trend.
In fact, among all the Starbucks stores that Placer tracks, this Starbucks location at Redbird ranks #5 in traffic for the year 2023.
In more exciting news, there are also plans for a Tom Thumb grocery to open up at this shopping center. We will keep an eye on this development for sure as more tenants and office/residence/hospitality opens up.
The past four years have each taken on their own identities for consumers, retailers, and commercial real estate companies. 2020 was obviously the pandemic year, where consumers had to quickly change behaviors and retailers were forced to make drastic changes in their business models to keep up. With such drastic changes in 2020, 2021 became a year where many retailers and commercial real estate companies made structural changes in their operating models, adopting new store sizes or formats or evolving their tenant mix. 2022 got off to a rocky start with COVID variants and inflationary pressures, but eventually, we saw a reopening that led to a shift away from physical goods to experiences that has largely continued through today. And while inflation defined much of 2023, we also think consumers' focus on events, value, and uniqueness also explains consumer behavior.
Heading into the year, there was hope that 2024 would be our first “normal” year in some time, but three weeks in, we’re already seeing evidence that weather may be end up being a more pronounced story. Storms across the Midwest (for the week ending Jan. 15) and Southeast (during the week ended Jan. 22) have already had a significant impact on visitation trends across many retail categories. Below, we’ve used data from Placer’s Industry Trends report to examine year-over-year visit trends for chains across all major retail categories to start the year.
For the week ended Jan. 8, visits decreased -8.6% nationwide across all categories and a relatively small variance range across states (ranging from double-digit declines across much of the Northeast to low-single-digit decline in the upper Midwest).
We start to see the impact of the snowstorms that hit the Midwest U.S. during the week ended Jan. 15, with Nebraska and Iowa seeing an almost 30% decrease in visitors year-over-year, and many other surrounding states seeing a 20% decrease in visits.
For the week ended Jan. 22, the Southeast U.S. was more heavily impacted, including a -32% decrease in retail visits in Tennessee, a -22% decline in Mississippi, and mid-to-high teens declines in Arkansas, Kentucky, Alabama, and West Virginia. Texas saw a -14% decline in visits that week.
Which categories were hit hardest by these weather trends? Consumer electronics–which had a strong Black Friday and solid holiday period (which we discuss in the economics section below)–saw mid-to-high teen declines in visits throughout January, although the category is lapping some tougher comparisons with many retailers shedding excess inventory in the year ago period (this is also true for office supplies). After that, we see the greatest impact in a few more weather-sensitive categories like home improvement (mid-teens declines in visits) and restaurants (the QSR/Fast Casual and full-service restaurant categories both saw double-digit declines in visits as the month progressed).
We expect weather will be a key topic as retailers and restaurants begin to report their full-year 2023 results and provide 2024 outlooks over the next month. Historically, inclement weather is something that doesn’t have a major impact on consumer demand for products and services (it usually just delays these purchases), but it is possible that those chains that have outsized exposure to the affected regions may temper their expectations for the year.
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.
