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The fast-casual space has been having a moment – with rising QSR prices leading many diners to embrace an upgraded experience. So with Q2 2024 in the rearview mirror, we dove into the data to check in with two fast-casual restaurant chains that have been doing particularly well: Chipotle and sweetgreen. How did their Q2 performance compare to that of the wider fast-casual segment? And what is it, exactly, that they are doing right?
We dove into the data to find out.
In the first quarter of 2024, Chipotle reported a 14.1% YoY increase in total revenue, and a 7.0% increase in comparable restaurant sales. And the chain isn’t showing any signs of slowing down. In Q2 2024, Chipotle saw YoY chain-wide foot traffic growth of 16.9%. And while some of this increase was undoubtedly due to the chain’s continued expansion – Chipotle added some 247 U.S. restaurants over the past year – the average number of visits to each of Chipotle’s restaurants also increased by an impressive 9.5%. By way of comparison, fast-casual restaurants experienced average quarterly YoY visit growth of just 4.2%, and visit-per-location growth of 2.9%.
One factor that appears to be contributing to Chipotle’s remarkable visit growth is its repeat customer base – which is growing more loyal with every passing year. Between Q2 2019 and Q2 2024, the share of visitors frequenting a Chipotle at least twice a month increased from 22.8% to 29.6%, while the share of visitors frequenting a Chipotle at least three times a month grew from 7.9% to 12.1%.
This rise in loyalty has taken place against the backdrop of Chipotle’s growing loyalty program – Chipotle Rewards – which launched in Q1 2019 and today boasts more than 40 million members. The program, which lets members earn points for every dollar spent, offers diners access to personalized deals and a range of special promotions – like free delivery on National Burrito Day. (Before you ask, foot traffic data shows that National Burrito Day, which fell on Thursday, April 4th, 2024 wasn’t just a day for ordering online: It was Chipotle’s busiest Thursday of the year so far, with visits up 19.7% compared to a regular Thursday). This April, Chipotle also partnered with Tekken 8 to offer diners in-game currency in exchange for orders – with special perks for Rewards members.
Another eatery that has been performing remarkably well in 2024 is sweetgreen – the fast-casual restaurant known for its healthy, fresh food. During Q2 2024, visits to sweetgreen were up a remarkable 19.9% YoY, a reflection of the chain’s growing footprint. But foot traffic data shows that there is more than enough demand to sustain sweetgreen’s accelerated expansion – over the analyzed period, the average number of visits to each sweetgreen location also increased by 5.9%.
A look at the hourly distribution of visits to sweetgreen shows that though the chain has made inroads into the dinner daypart, lunchtime remains its prime time to shine – especially on weekdays.
During the first half of 2024, 24.9% of weekday visits to sweetgreen took place between noon and 2:00 PM – compared to just 21.7% for the wider fast-casual category. But while sweetgreen, popular among the in-office crowd, drew a greater share of lunchtime visitors on weekdays, the fast-casual segment as a whole drew a greater share of lunchtime visitors on the weekends. Indeed, on Saturdays and Sundays, the share of lunchtime sweetgreen visitors dropped to 22.7%, while the share of fast-casual lunchtime visitors increased to 22.2%.
Still, suppertime is also a popular daypart for the salad chain on weekdays – with 20.0% of Monday - Friday visits taking place between 6:00 and 8:00 PM. As sweetgreen continues to lean into steaks and other dinner fare, it will be interesting to see if the restaurant begins to capture even more evening traffic.
Chipotle’s and sweetgreen’s strong quarter positions them well for further growth as the year wears on. Will Chipotle’s loyalty continue to increase? And will sweetgreen double down on dinner?
Follow Placer.ai’s data-driven restaurant analyses to find out.
Millennials everywhere, rejoice, because a beloved brand is back, for the next generation. Limited Too, an apparel staple for girls growing up in the 1990’s and 2000’s, has found its way back to the retail stage after years of dormancy. The brand began teasing its return a month ago, but last week brought the announcement that Limited Too’s relaunch will take place via a new apparel line at Kohl’s. With the Fourth of July over and Amazon Prime Day complete, the back-to-school season is officially upon us, even if it still feels like summer. In Kohl’s press release on Friday, the Limited Too introduction is a part of its larger back-to-school efforts, and it appears to be aimed at expanding apparel offerings for girls. And, with Kohl’s recent and upcoming additions like Sephora, Babies”R”Us, and now Limited Too, the target is clearly to woo and excite the Millennial shopper.
The relaunch of Limited Too includes fashion for girls size 7-16, the same Tween demographic that the brand originally captured. Mall-based Limited Too shut its doors in 2008, and the majority of stores were converted into rival retailer, Justice, who shuttered all of its stores in 2020. The brand revival is likely positioned by Kohl’s to appeal to parents who grew up with an affinity for the brand who can now purchase for their children.
With the relaunch, how well situated is Kohl’s to attract this ideal “Limited Too Loyalist”? We took a look at a sampling of former Justice stores prior to closing, from 2018 to January 2020, and compared the audience profile of Justice visitors to Kohl’s visitors using Spatial.ai PersonaLive, both during the same time period as well as in 2024.
Our data highlights that both retailers actually have a similar audience profile of visitors, and that Kohl’s has continued to grow its percentage of Upper Suburban Diverse Families and Wealthy Suburban Families to more closely align with the former Justice demographics. Since the pandemic and through its new partnerships and planned additions, Kohl’s has been able to capture wealthier suburban families, and as Millennials continue to migrate out of urban centers, the retailer may have set itself up well to welcome these shoppers.
The tween apparel market today is highly fragmented, as is true with most areas of discretionary retail, with shoppers having access to countless brands and channels to choose from. Mass merchants, fast fashion, and athleisure brands are all vying for the attention of tweens, who are in turn influencing the retail decisions of their parents. A few months ago, we wrote about Brandy Melville, a somewhat controversial retailer that is still hugely popular with tweens. The retailer has the cool and elusive styling that young shoppers crave, and continues to be a strong traffic performer so far in 2024 (below). We’ve also written about the renaissance of Abercrombie & Fitch, another 2000’s brand with a strong connection to Millennials that has been able to recapture visitors’ attention, and still operates the Abercrombie Kids brand aimed at the same size range as the newly launched Limited Too.
Kohl’s new bet for the back-to-school season hangs on appealing to nostalgic Millennial parents, a group that quickly is becoming a target for many retailer strategies. We wrote last week about the rise of younger visitors to warehouse clubs, and the importance of younger shoppers to growing the member base. In a competitive and value-oriented retail environment, appealing to this group and gaining their loyalty in visits is critical to long-term success. It will be interesting to see if the Millennial love for Limited Too still remains, even after all these years.
Another year, another acquisition for casual-dining restaurant leader Darden Restaurants. Following up last year’s acquisition of Ruth’s Chris Steakhouse, Darden plans to acquire Chuy's for $605M (representing 10.3x Chuy’s trailing-twelve-month adjusted EBITDA of $59, or 8.2x adjusting for run-rate G&A costs that can be eliminated by adding Chuy’s to the Darden portfolio). Chuy’s is among the leading players in the Mexican casual-dining space in terms of revenue ($451M in revenue during 2023, adjusting for the extra week in the reporting calendar), average revenue per unit ($4.5M), and restaurant-level EBITDA (20%).
The acquisition of Chuy’s makes sense to us on a number of levels. First, and most obviously, Chuy’s fills a gap in the Darden portfolio. The company already owns the top player among casual-dining Italian chains (Olive Garden) and the number-two player in casual-dining steakhouses in addition to its other casual-dining (Cheddar’s, Yard House, Bahama Breeze) and fine-dining (Ruth’s Chris, The Capital Grille, Eddie V's, Seasons 52) concepts. By adding a casual-dining Mexican concept to its portfolio, we believe there will be an opportunity to attract incremental visitors. Below, we’ve presented cross visitation for Darden’s casual-dining brands and Chuy’s in 2023, and we see minimal overlap (although the cross-visit data is admittedly impacted by chain size and geography). According to our data, only 4%-5% of visitors to Darden’s existing restaurants also visited a Chuy’s location in 2023 (with the exception of Cheddar’s, which saw a 12.9% cross-visitation percentage).
Second, despite Chuy’s being the leading player in the Mexican casual dining space, it’s still a relatively fragmented category that is ripe for consolidation. Below, we show the share of visitation data for Chuy’s compared to almost 20 other full-service Mexican restaurant chains from 2017-2023. Despite Chuy’s growth, its share of visits relative to the rest of the category has remained relatively healthy in the 12%-15% range. Backed by Darden’s purchasing, advertising, and real estate scale advantages, we see a meaningful opportunity to consolidate share of visits going forward, including visit per location improvement.
Chuy’s has been one of the leaders in the Mexican casual-dining chains in terms of visitation growth this year, outpacing monthly visits for the category by 5% on average (below). While integration will take time, applying guest experience, menu innovation, pricing, and marketing best practices from Darden should help to maintain this leadership.
At 101 company-owned restaurants today, Chuy’s is comparable to several other brands in the Darden portfolio (including Yard House at 88 units and Ruth’s Chris at 79). The chain is well established in Texas (44 company-owned units) but has a relatively small presence in other states across the Southeast and Midwest (below).
As Darden and Chuy’s management pointed out in a conference call to discuss the transaction, there are significant opportunities in both existing and new markets. Placer’s Site Selection tool (which identifies the characteristics of Chuy’s top locations–including trade area populations, demographic fit, cannibalization risk, and competition density–and finds markets/sites with similar characteristics) sees the best fits for expansion in several West, Midwest, and Northeast markets.
The first half of 2024 is proving to be more heavily visited for all types of shopping centers. June in particular is stronger than it was last year. After some January doldrums, where all shopping traffic was lower than the prior year due to weather, February began to pick up and March was particularly strong comparatively for outlet malls compared to last year. April saw a general downtick for more discretionary shopping, but May and June are looking strong so far.
The top 5 outlet malls by traffic during the last week of June were Arundel Mills, Ontario Mills, Sawgrass Mills, Legends Outlets Kansas City, and The Outlets at Orange. Among indoor malls, shoppers flocked to Mall of America, Roosevelt Field, Westfield Valley Fair, Del Amo Fashion Center, and Westfield Southcenter. Weather is always a consideration in the summer months, but as shopping centers have become increasingly sophisticated about strategically placed shade or places to take a break, it can be quite refreshing to visit an open-air lifestyle center. Tops in the nation for traffic include Ala Moana Center, Pier Park, Easton Town Center, Irvine Spectrum Center, and Victoria Gardens. As for high street retail corridors, no one can match the Big Apple. Three of the top five high streets were here, including Times Square and 42nd St at #1, SoHo at #3, and 5th Ave at #4. In second place was Michigan Ave in Chicago and in fifth place was Beverly Hills.
Against the backdrop of what remains a challenging time for full-service restaurants (FSRs), we dove into the data to check in with three of America’s leading FSR chains – First Watch, Texas Roadhouse, and Applebee’s. How did they fare in Q2 2024? And what lies in store for them in the months ahead?
First Watch has emerged as a rising star in recent years, rapidly expanding its footprint while at the same time taking pains to preserve the feel of a small, local eatery. The restaurant is nimble on its feet – growing its audience through a strategy centered on continual menu innovation and special seasonal offerings.
In the past year alone, First Watch added dozens of new locations to its fleet. And foot traffic data shows that the chain’s aggressive growth strategy is meeting robust demand. In Q2 2024, YoY visits to First Watch grew by 16.0%, far outperforming FSR and diner & breakfast chain averages. And perhaps more importantly, the average number of visits to each individual First Watch restaurant rose 5.8% over the same period.
Texas Roadhouse is another chain that has been crushing it in 2024 – and not just on Father’s Day. Over the past year, the popular steakhouse opened some 30 new U.S. locations, and plans to continue expanding this year.
And foot traffic data shows that Texas Roadhouse’s high-quality, affordable offerings are resonating with consumers. Despite inflation-driven price hikes, YoY visits to the chain have continued to grow. And though some of this increase is due to the restaurant’s expansion, the average number of visits per location has also been on the rise: Between January and June 2024, Texas Roadhouse experienced near-consistent YoY visit and visit-per-location growth. Only in January and in April did visits per location falter, likely due to January’s inclement weather and an April Easter calendar shift.
On a quarterly basis, too, foot traffic to Texas Roadhouse increased 6.2% in Q2 2024 – significantly outpacing averages for both steakhouses (2.6%) and full-service restaurants (1.2%).
Like many full-service restaurants, Dine Brands’ Applebee’s has faced its share of headwinds in recent years. Over the past 12 months, Applebee’s shuttered at least 30 locations, contributing to a drop in the chain’s overall foot traffic. But analyzing changes in the average number of visits to each Applebee’s restaurant shows that the closures may actually be helping to put Applebee’s back on a firmer footing.
In Q2 2023, visits to Applebee’s nationwide declined 3.7% YoY, while the average number of visits per location dropped 2.7%. Since then, the chain’s YoY visit gap has narrowed – while the average number of visits per location has begun to increase. And in Q2 2024, Applebee’s closed its overall YoY visit gap and grew its visits per location by 2.3%. Though the chain has yet to return to positive unit growth, the rightsizing of its fleet appears to be bolstering Applebee’s remaining stores – positioning it for long-term success.
Full-service restaurants have had a tough time in recent years, and concerns that consumer spending may moderate as the year wears on continue to weigh on the industry. Still, foot traffic data suggests that consumers are once again visiting restaurants – fueling expansion for First Watch and Texas Roadhouse, and helping shore up Applebee’s long-term prospects.
What does the rest of 2024 have in store for restaurant chains?
Follow Placer.ai’s data-driven restaurant analyses to find out.
Albertsons Companies, Inc. is one of the country’s largest grocery holding companies. The company operates various well-known grocery banners, including Albertsons, Safeway, Jewel-Osco, and Shaw's Supermarket.
We examined the visit performance of some of the brand’s major banners to see how they are faring as the second half of the year gets underway.
Albertsons Companies, Inc. operates over 2,200 stores across 36 states, and Safeway, with 918 stores, is the company’s largest banner by far. Unsurprisingly, Safeway also pulls in the greatest share of visits, accounting for 44.5% of foot traffic to Albertsons brands between January and June 2024. Albertsons and Jewel-Osco banners, with 379 and 188 stores, respectively, accounted for 17.9% and 10.7% of all visits to the company’s portfolio in H1 2024. The remaining 27.6% of visits went to smaller brands, including VONS (8.5%), ACME Markets (5.7%), and Shaw’s Supermarket (4.7%).
A look at recent visits to some of Albertsons' major banners shows that the brand has fared well in a period noted for value grocery dominance. Though Albertsons brands fall squarely into the traditional grocery store category, its banners experienced near-consistent YoY visit growth in H1 2024, with June 2024 visits between 5.7% and 11.7% higher than they were in June 2023.
Recognizing the increased focus among grocery shoppers on value, Albertsons has been enhancing its loyalty program, initially launched in 2021 and revamped in April 2024. The new "Albertsons for U" program unified its points currency while adding new perks, including discounts on groceries and gas for enrolled members. And the program seems to be spurring shoppers to do their weekly shopping at the company’s various banners.
The percentage of visits to Albertsons banners made by customers visiting a chain at least four times in a month increased each year analyzed. For example, in June 2022, 54.8% of Safeway visits came from shoppers who visited the chain at least four times during the month; by June 2024, that number increased to 56.3%. Similarly, the share of visits to Jewel-Osco from weekly shoppers increased from 54.8% to 57.1% over the same period. These patterns repeated at Shaw's Supermarket, ACME Markets, United Supermarkets, VONS, and Tom Thumb.
The rise in loyalty rates across all banners indicates that Albertsons’ focus on enhancing customer experience and engagement has paid off. As the chain continues to lay the groundwork for its planned merger with Kroger, its increasingly loyal customer base will remain a powerful asset.
Albertsons remains one of the most dominant grocery holding companies in the country, and its banners have maintained strong yearly growth, both in terms of visits and loyalty.
Will visits to Albertsons brands continue to grow into the second half of the year?
Visit Placer.ai to keep on top of the latest grocery insights.
Last year ended on a high note for many retailers, with cooling inflation and rebounding consumer confidence contributing to a robust holiday season. Still, 2023 was a year of headwinds for the sector, as consumers traded down and cut back on unnecessary indulgences.
In the midst of these challenges, some segments thrived. Continued prioritization of health and wellness by consumers drove strong visit growth for the Fitness and Beauty & Self Care segments – which emerged as 2023 winners and enjoyed positive foot traffic growth in Q4. At the same time, price consciousness drove foot traffic to Discount & Dollar Stores and Superstores, both of which made inroads into the affordable grocery space during the year.
The Grocery category, too, saw a 4.3% jump in visits last year compared to 2022, as well as a slight uptick in Q4 visits. And even the discretionary Dining sector held its own, with a 2.1% year-over-year (YoY) annual increase in foot traffic, and a Q4 quarterly visit gap of just 1.8%.
Fitness had a particularly strong 2023, buoyed by consumers’ sustained interest in self-care and wellness. Since the pandemic, gym memberships have graduated from a discretionary expense to something of a necessity – an important investment in health and wellbeing. The category has also likely continued to benefit from the post-COVID craving for experiences.
And quarterly data shows that the Fitness segment is positively flourishing. Throughout most of Q4 2023, Fitness venues experienced YoY weekly visit growth ranging from 8.8% to 12.2%. (The unusual visit spike and dip during the last two weeks of the quarter are due to calendar discrepancies: The week of December 18th, 2023 is being compared to the week of December 19th, 2022, which included Christmas Day – while the week of December 25th, 2023 is being compared to the week of December 26th, 2022, which did not).
Drilling down into the data for several leading fitness chains shows that there’s plenty of success to go around. Crunch Fitness – ranked by Entrepreneur as 2024’s top fitness franchise – led the pack with a remarkable 28.2% YoY annual increase in visits, partly fueled by the steady expansion of its fleet. And while other value gyms like Planet Fitness also saw robust visit growth, the boost wasn’t limited to budget options. Given the Fitness sector’s already-impressive 2022 performance, the category’s strong YoY showing is especially noteworthy.
Beauty & Self Care was another category to benefit from 2023’s obsession with wellness – as well as the “lipstick effect”, which sees consumers treating themselves to fun, affordable luxuries when money’s tight. Driven in part by the evolving preferences of Gen Z consumers, cosmetics leaders have embraced wellness-focused approaches to cosmetics that prioritize self-care and self-expression. This strategy continues to prove successful: Throughout Q4 2023, Beauty & Self Care chains saw steady YoY weekly visit growth, especially in November and early December – perhaps highlighting Beauty’s growing role in the holiday shopping frenzy.
One brand leading the cosmetics pack in 2023 was Ulta Beauty – which drew growing crowds with its diverse product selection. Everybody loves makeup, and Ulta makes sure to have something for everyone – from discount fare to more upscale products. Buff City Soap, which now pairs its signature offerings with experiential vibes at some 270 locations across 33 states, also experienced YoY annual visit growth of 14.7%. And Bath & Body Works, which made the Wall Street Journal’s list of best-managed companies for 2023, also saw visit strength, with an overall increase in annual foot traffic, even as Q4 visits saw a slight decline.
If wellness was a key retail buzzword in 2023, value was an equally discussed topic. And Discount & Dollar Stores – ideal destinations for cash-strapped consumers seeking bargain merchandise – made the most of this opportunity. Shoppers frequented these chains year-round for everything from groceries to home goods, propelling the category firmly into the mainstream.
And in Q4 2023, shoppers flocked to discount chains in droves to snag food items, stocking stuffers, and other holiday fare – fueling near-uniform positive YoY foot traffic growth throughout the quarter. The week of October 30th seems to have kicked off the Discount & Dollar holiday shopping season, perhaps showcasing the segment’s growing role as a Halloween candy and costume hotspot.
Every discount chain is somewhat different – and the success of the various Discount & Dollar chains can be attributed to a range of factors. Dollar Tree and Dollar General likely benefited from the broadening and diversification of their grocery selections – while Ollie’s (“Get Good Stuff Cheap!”) solidified its position as a place to find relatively upscale items at a bargain. All three chains – and particularly Dollar General and Ollie’s – also grew their footprints over the past year. Family Dollar (also owned by Dollar Tree) also came out ahead on an annual basis – despite the comparison to a strong 2022.
Of all the Discount & Dollar chains, Five Below saw the biggest surge in foot traffic, partly as a result of its increasing store count. But the retailer’s offerings – affordable toys, party supplies, and other fun splurges – also appear to have been tailor-made for 2023’s retail vibe.
During the fourth quarter of the year, Superstores saw a slight YoY increase in visits – including during the all-important week of Black Friday, beginning on November 20th. (This week was compared with the week of November 21st, 2022, which also included Black Friday). Like Discount & Dollar chains, Superstores saw an appreciable YoY visit uptick during the week of Halloween.
On an annual basis, Superstore mainstays Walmart and Target experienced visit increases of 2.8% and 4.7%, respectively. But while all the major category players enjoyed a successful year, membership warehouse chains’ YoY visit numbers were especially strong. As perfect venues for mission-driven shopping expeditions, Costco, Sam’s Club, and BJ’s likely drew shoppers eager to load up on both inexpensive gifts and essentials.
The traditional Grocery sector also held its own during Q4 2023. Notably, grocery stores saw positive visit growth for most weeks of November and December, a period encompassing the critical Turkey Wednesday milestone – no small feat given the disruptions experienced by the category.
Unsurprisingly, it was discount grocery chains that saw some of the greatest YoY visit growth, as shoppers – including higher-income segments – sought to counter inflation with lower-priced food-at-home alternatives. Whether through opportunistic buying models, private label merchandising, or no-frills customer experiences, value supermarkets proved once again that even quality specialty items don’t have to carry high price tags.
Eating out can be expensive – and when money’s tight, restaurants and other discretionary categories are often first to feel the crunch. But the Dining category seems to have emerged from 2023 relatively unscathed, with overall yearly visits up 2.1% compared to 2022 despite the modest YoY weekly visit gaps in Q4 2023. And given the myriad challenges out-of-home eateries had to contend with in 2023 – from inflation to labor shortages – even the minor weekly gaps are quite an attainment. (As noted, the last two weeks of the quarter reflect calendar discrepancies).
Foot traffic data shows that dining success could be found across sub-categories. Wingstop, Shake Shack, and Jersey Mike’s Subs rocked Fast Casual and QSR, with annual YoY visit growth ranging from 11.8% to 20.3%, partly fueled by the chains’ growing footprints. Full-Service Restaurants also had their bright spots, including all-you-can-eat buffet star Golden Corral and two steak venues: Texas Roadhouse and LongHorn Steakhouse.
And in the Coffee, Breakfast, and Bakeries space, Playa Bowls led the charge. The superfruit bowl chain’s affordable, wellness-oriented treats seem to have been created with 2023 in mind – and during the year Playa Bowls expanded its fleet while also seeing double-digit increases in comparable store sales. Steadily expanding Biggby Coffee and Dutch Bros. Coffee also saw significant YoY foot traffic growth.
New year, new retail opportunities. And though 2023 is firmly in the rearview mirror, the economic headwinds that characterized much of the year have yet to fully dissipate. But every challenge also brings with it new opportunities, and many retailers are adapting to meet their customers' changing wants and needs.
This white paper analyzes location intelligence for 10 brands poised to succeed in 2024. Some, like low-cost apparel and home furnishing stores, are benefitting from consumer trade-down. Others are expanding into rural or suburban areas to meet customers where they are. Read on for some of 2024’s retail winners.
Until around four years ago, New Balance sneakers were commonly seen on the feet of suburban dads – not exactly a recipe for high fashion. But all that began to change in 2019 when the company began collaborating with Teddy Santis, who eventually became New Balance’s creative director. Since then, the brand’s popularity has surged among Gen Z and X and is now one of the fastest-growing sneaker companies in the industry, despite the increasing competition in sneaker space. In 2023, foot traffic to New Balance stores grew 3.3% year-over-year (YoY) and the brand has firmly established itself as ultimate retro cool.
Diving into the demographics of New Balance stores’ captured market trade area reveals the success of the chain’s rebranding. In 2023, New Balance’s trade area included larger shares of “Ultra Wealthy Families,” “Young Professionals,” and “Educated Urbanites” than the average shoe store’s trade area – highlighting New Balance’s successful reinvention as a brand for the young and hip.
The home improvement space is dominated by Lowe’s and Home Depot – but Harbor Freight Tools is quickly making a name for itself as a go-to destination for affordable tools and supplies.
Over the past few years, Harbor Freight Tools has expanded rapidly, with many of its new stores opening in smaller towns and cities. And the expansion appears to be paying off, with visits up YoY during every month of 2023. And although the chain is now operating with a significantly larger store fleet, the average number of visits per venue has generally increased – indicating that the company is expanding into markets where it is meeting a ready demand.
Over a decade after Mackelmore dropped his smash hit “Thrift Shop” in 2012, second-hand stores are still enjoying their time in the limelight. Shoppers, driven by a desire to reduce waste, find unique styles, and to save a few dollars at the till, continue to flock to thrift stores. And Winmark Corporation, which operates five secondhand goods chains – including apparel brands Plato’s Closet (young adult clothes), Once Upon a Child (children's clothes and toys), and Style Encore (women's clothing) – has benefited from the strong demand. Visits to the three Winmark clothing banners increased an average of 5.3% YoY in 2023.
The median household income (HHI) in the trade areas of Winmark’s apparel chains tends to be lower than the median HHI in the wider apparel category – so budget-conscious consumers are driving at least some of the company’s growth. With more consumers looking for ways to cut back on spending in 2024, the demand for second-hand clothes is expected to grow even further – and Winmark is likely to continue reaping the benefits.
HomeGoods, a treasure hunter's dream, is the discount home furnishing retailer owned by off-price retail giant TJX Companies. The chain, which operates over 900 brick-and-mortar stores, recently closed its e-commerce platform to focus on its physical locations – where foot traffic grew 6.0% between 2023 and 2022.
HomeGoods carries kitchen and home decor items along with furniture, and may be benefiting from the relative strength of the houseware segment, driven in part by an increase in at-home entertainment. And in a surprising twist, this low-cost retailer attracts more affluent visitors than visitors to the home furnishing segment overall. The median household income (HHI) in HomeGoods’ trade area stood at $84.7K/year compared to a $78.5K median HHI in the trade area of the average home furnishing chain. As economic uncertainty and the resumption of student loan payments impact consumers, wealthier shoppers seeking a budget-friendly home refresh are likely to continue choosing HomeGoods over pricier alternatives.
Florida-based Bealls, Inc., which got its start as a small town five-and-dime in 1915 in Bradenton, Florida, now operates over 600 stores across the country. The company, which saw an impressive 9.0% YoY increase in visits in 2023, recently consolidated its two largest banners – Burkes Outlet and Bealls Outlet – under the Bealls name.
One reason for Bealls’ success could be its appeal to rural consumers. Over the past five years, the share of households falling into Spatial.ai: PersonaLive’s “Rural Average Income” segment has steadily increased, growing from 12.6% in 2019 to 15.1% in 2023. With rural shoppers continuing to command ever-more attention from retailers, the increase in visits from this segment bodes well for Bealls in 2024.
Ollie’s Bargain Outlet was built for this economy. The chain saw a 13.0% YoY increase in visits in 2023, thanks in part to its popularity among a wide array of budget-conscious consumers. Ollie’s has found success with rural shoppers while maintaining its appeal among value-oriented suburban segments – and the chain’s diverse audience base seems to be setting it apart from other discount retailers.
A closer look at the chain’s captured market data, layered with the Spatial.ai: Personalive dataset, reveals that Ollie’s trade area includes larger shares of the “Blue Collar Suburbs” and “Suburban Boomer” segments when compared to the wider Discount & Dollar Stores category. As the chain plots its expansion, focusing on suburban and rural areas may help Ollie’s meet its customers where they are.
Trader Joe’s has managed to do what few stores can. The company does not invest in marketing, has no online shopping options, and loyalty programs? Forget about it. But despite this unusual approach to running a business, the California native has enjoyed consistent success over the years, with a 12.4% YoY increase in visits in 2023.
Trader Joe’s is particularly popular among younger shoppers, perhaps thanks to the company’s focus on sustainability and social responsibility – as well as its famously low prices. Analyzing the chain’s trade area using the AGS: Panorama dataset reveals that Trader Joe’s attracts more “Emerging Leaders” and “Young Coastal Technocrats” (segments that describe highly educated young professionals) than the average grocery chain. With Gen Z particularly concerned about putting their money where their mouth is, Trader Joe’s is likely to sustain its momentum in 2024 and beyond.
Convenience stores are growing up and evolving into bona-fide dining destinations. And Foxtrot, a Chicago-based chain with 29 stores across Texas, Illinois, Washington, Maryland, and Virginia, is one c-store redefining what a convenience store can be. The chain, which announced a merger with Dom’s Kitchen in November 2023, offers an upscale convenience store experience and is particularly known for including local brands in its product assortment as well as its excellent wine curation and dining options.
Visitors to the chain were significantly more likely to fall into AGS: Behavior & Attitudes dataset’s “Wine Drinker” or “Nutritionally Aware” segments than visitors to nearby convenience stores. The company plans to ramp up store openings, particularly in the suburbs, where convenience and a good bottle of wine might just find the perfect home as a welcome distraction from the daily grind.
Jersey Mike’s is one of the fastest-growing franchise dining chains in the country, operating over 2,500 locations in all 50 states. The sandwich chain has seen its popularity take off over the past few years, with 2023 visits up 14.1% YoY and plans to open 350 new stores in 2024.
The company has long prioritized affluent class suburban customers – and visitation data layered with the Experian: Mosaic dataset reveals that Jersey Mike’s has indeed succeeded in attracting this audience. The percentage of “Booming with Confidence” and “Flourishing Families” (both affluent segments) in Jersey Mike’s trade area was larger than in the trade areas of the average sub sandwich chain. As Jersey Mike’s continues its expansion, focusing on suburban areas may continue to serve the chain well.
The East Coast may not be the first region that pops to mind when thinking about tropical smoothies – but New Jersey-based Playa Bowls is making it work. The company was founded by avid surf enthusiasts determined to bring the flavors of their favorite surfing towns stateside.
Playa Bowls has enjoyed strong visit numbers in 2023, with overall visits up 23.0% and average visits per venue up 17.1% YoY – and part of the chain’s success may be driven by its ability to draw wealthier customers to its stores. The Experian: Mosaic dataset reveals that the “Power Elite” segment is overrepresented in the company’s trade areas: The share of households falling into that segment from Playa Bowl’s captured market exceeded their share in the company’s potential market. As the chain continues expanding its domestic footprint, it seems to have found its niche among a wealthy customer base.
The past year saw a wide range of challenges facing brick-and-mortar retailers as economic fears continued to shake consumer confidence. But there are plenty of bright spots as the new year gets underway. These ten brands prove that the retail world never stands still, and that the next opportunity is just around the corner.
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. Many stadiums host concerts and other shows in addition to regularly held sporting matches and can accommodate tens of thousands of spectators at once – creating massive retail, dining, and advertisement opportunities.
This white paper analyzes location intelligence metrics for some of the biggest stadiums across the country to reveal the commercial potential of these venues beyond simple ticketing revenue. Where do visitors of various stadiums like to shop? Do specific sporting and cultural events impact the nearby restaurant scene differently? How can stadium operators, local businesses, and advertisers tailor their offerings to a stadium’s particular audience and make the most of the stadium and the space throughout the year?
We take a closer look below.
The three major sports leagues – the National Basketball League (NBA), Major League Baseball (MLB), and the National Football League (NFL) – play at different points of the year, and the number of games each league holds during the season also varies.
MLB leads in game frequency, with each team playing 162 games during the regular season, which runs approximately from April through September. Basketball season is also around six months – roughly from mid-October to mid-April – but each NBA team plays only 82 games a season. And the NFL has both the shortest season – 18 weeks running from early September to early January (with the pre-season starting in August) – and the fewest number of matches per team. Understanding the monthly visitation patterns for the various types of stadiums can help advertisers, stadium operators, and other stakeholders ensure that they are leveraging the full potential of the venue throughout the year.
Unsurprisingly, the sports arenas serving the different leagues see visit spikes during their leagues’ respective season. But comparing visit numbers throughout the year to the average monthly visit numbers for each category in 2023 reveals that the relative visit increases and decreases during the on- and off-season vary for each type of stadium.
MLB stadiums display the steadiest visit strength during the on-season – perhaps due to MLB’s packed game schedule. MLB tickets also tend to be relatively affordable compared to tickets to pro football or basketball matches, which may also contribute to MLB’s consistently strong visit numbers throughout the season. During the MLB off-season, baseball fields – which tend to be uncovered – are relatively empty.
The seasonal visit spike to NBA arenas is less steady. The beginning and end of the season see strong peaks, and visits slow down slightly during the mid-season months of January and February. Visits then drop during the off-season spring and summer, but the off-season visit dip is not as low as it is for MLB fields – perhaps because the NBA arenas’ indoor nature make them suitable locations for concerts and other non-basketball events.
Meanwhile, NFL stadiums see the least dramatic drop in visits during the NFL off-season, as these venues’ enormous size also make them the ideal location for concerts and other cultural events that draw large crowds. These arenas’ strong almost year-round visitation numbers mean that sponsors and advertisers looking to expand beyond sports fans to reach a diverse audience may have the most success with these venues.
Although MLB offers the most budget-friendly outing, combining STI: Popstats demographic metrics with trade area data reveals that MLB stadium visitors reside in higher-income areas when compared with visitors to NBA or NFL stadiums.
Baseball fans tend to be older than fans of the other sports, which could partially explain MLB stadium visitors’ higher household income (HHI). The combination of lower ticket prices, higher median HHI among fans, and many games per season offers baseball stadiums significant opportunities to engage effectively with their fan bases.
But while NBA and NFL stadium attendees may not come from as high-income areas as do MLB stadium visitors, fans of live basketball and football still reside in trade areas with a higher HHI compared to the nationwide median. So by leveraging stadium space, advertisers and other stakeholders can reach tens of thousands of relatively high-income consumers easily and effectively.
Sports fans are known to be passionate, engaged, and willing to spend money on their team – but stadium visitors also shop for non-sports related goods and services. Retailers and advertisers can draw on location analytics to uncover the consumer preferences of stadium visitors and tailor campaigns, sponsorships, and collaborations accordingly.
Visitation data to the top five most visited MLB stadiums during 2023 showed differences between the apparel and sporting goods shopping preferences of the various stadiums’ attendees. While 39.4% of visitors to Truist Park also visited DICK’s in 2023, only 30.8% of Yankee Stadium visitors stopped by the sporting goods retailer in the same period. Similarly, while 29.9% of visitors to Yankee Stadium frequented Kohl’s, that percentage jumped to 47.3% for Busch Stadium visitors.
Harnessing location intelligence to see the consumer preferences of a stadium’s visitor base can help retailers, stadium operators, and even team managers choose partnerships and merchandising agreements that will yield the most effective results.
Sports and snacks go hand in hand – what would a baseball game be without a hot dog or peanuts? But while every stadium likely provides a similar core of traditional game day eats, each venue also offers a unique set of dining options, both on- and off-premise. And by leveraging location analytics to gain visibility into stadium-goers dining habits, stadium operators and local food businesses can understand how to best serve each arena’s audience.
Mapping where stadium visitors dine before and after games can help stakeholders in the stadium industry reach more fans.
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.
All of the stadiums analyzed exhibited unique visitor 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.
Zooming in to look at consumer behavior around individual events reveals further variability in dining preferences even among visitors to the same stadium, with different types of events driving distinct dining behaviors.
State Farm Stadium in Glendale, Arizona, is home to the Arizona Cardinals. The stadium hosted the 2023 Super Bowl, but the NFL stadium also acts as a concert venue for acts ranging from Taylor Swift to Metallica. And location intelligence reveals that the dining preferences of stadium visitors vary based on the events held at the venue.
During the Super Bowl, sports bars such as Yard House and Buffalo Wild Wings saw the largest increase in visits compared to the chains’ daily average. A month later, attendees at Taylor Swift's concert gave fried-chicken leader Raising Cane’s a significant boost.
Local restaurants can leverage location analytics to see what types of events are popular with their visitor base and craft collaborations and advertising campaigns that resonate effectively with their patrons.
Sports stadiums and arenas are not just spaces for sports and music enthusiasts to gather; they also offer significant commercial opportunities for the surrounding communities. Stadium operators and local businesses can fine-tune their offerings by utilizing location analytics to better connect with their visitor bases and uncover new retail opportunities.
