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What does 2024 hold for malls and shopping centers? We dove into the data to unearth the trends likely to shape the space in the coming year.
The move towards greater tenant diversity in malls shaped the shopping center space in recent years, and the trend appears set to be taken to the next level in 2024. Placemaking – crafting public spaces that go beyond utilitarian needs to foster social interaction and exchange – is at the forefront of many urban development initiatives, and the trend is already boosting retail performance in successful placemaking projects.
Fenton, a mixed-use district in Cary, N.C., opened in June 2022. The project showcases the potential of placemaking to transform an underutilized space into a vibrant “live-work-play” community with something for individuals and families of all ages. The retail and entertainment village includes shops, restaurants, seasonal attractions, entertainment venues, and other diverse offerings that are establishing Fenton as a community hub and a prime destination for residents. Visits were up 53.2% between July and December 2023 compared to the same period in 2022, while median dwell time increased from 64 to 83 minutes.
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Across the country, in Phoenix, AZ, Park Central Mall – the state’s first open-air shopping center – was also redesigned as a mixed-use development Park Central. The complex includes restaurants, office space, medical facilities, and bioscience research labs, with more hospitality and housing under construction. And although the project first reopened in 2019, visits to the revitalized Park Central continue to grow – between 2022 and 2023, foot traffic to Park Central increased by 32.8% while median dwell time grew from 75 to 80 minutes.
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In 2023, malls attracted relatively high income shoppers – and as the trend is likely to continue in 2024, with high-income shoppers displaying significantly stronger consumer confidence than their middle- and low-income counterparts.
Households in the potential market trade areas of Indoor Malls, Open-Air Lifestyle Centers, and Outlet Malls tended to have higher incomes relative to the nationwide median – and the median HHI was even higher in the malls’ captured market trade area. This means that many of these malls are located within relatively affluent communities (hence the relatively high potential market median HHI) and attract the higher-income shoppers within those areas (as shown by the even higher captured market median HHI).
With middle-income shoppers expected to tighten their budgets in 2024, high-income consumers will likely remain a significant share of mall-goers in 2024 as well.
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Malls used to be the place for teens to hang out on weekends – and it looks like shopping centers are once again attracting younger generations of consumers. Between 2019 and 2023, the share of “Young Professionals” and “Young Urban Singles” in the captured market trade areas of Indoor Malls, Open-Air Shopping Centers, and Outlet Malls increased. At the same time, the share of older segments – “Suburban Boomers” and “Sunset Boomers” – decreased.
As Gen-Z shoppers rediscover physical stores and increasingly seek out the mall-going experience, the share of younger consumers visiting shopping centers may well grow larger in the upcoming year.
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Last year’s ongoing inflation brought a unique set of challenges to a brick-and-mortar space still recovering from the pandemic’s impact. But 2023 ended with a surge in consumer confidence, and 2024 may well bring a positive shift to malls and the wider retail landscape. And shopping centers – especially those that offer a diversity of experience and succeed in catering high-income and/or younger shoppers – can take advantage of the opportunities in the year ahead.
For more data-driven insights, visit placer.ai/blog.
Few things are as universally loved as freshly baked bread. And the options for where to find a loaf are plentiful, from local artisan shops to bakery chains to grocery store bread counters. Is there room in the crowded bakery scene for everyone? We take a closer look at the visitation data for a few bakery chains that are on the rise to find out.
Paris Baguette, the South Korean bakery and cafe chain, inaugurated its first U.S. store in Los Angeles in 2005. True to its name, the chain offers a menu inspired by classic French boulangeries with a Korean twist – think mochi donuts sold alongside croissants.
Paris Baguette hopes to operate 1,000 stores across the country by 2030; to that end, it embraced a franchising approach in 2015 to accelerate growth and store openings. Visitation patterns suggest that this move has proven itself to be a winning one.
Examining the change in monthly visits to Paris Baguette locations since November 2019 underscores the brand’s remarkable growth. The chain operated 77 stores in the U.S. in November 2019; today, that number has nearly doubled. And visits have soared accordingly, with December 2023 seeing 96.7% more monthly visits than December 2019.
As Paris Baguette continues to see its success rising, the bakery chain appears well-positioned to maintain its momentum and achieve its ambitious expansion plans.
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85°C Bakery, often dubbed the "Starbucks of Taiwan," made its way to the U.S. in 2008. The chain, which operated 59 U.S. stores as of March 2023 in addition to its significant international presence, seeks to solidify its standing in the American market.
Named after the ideal coffee-brewing temperature, 85°C has enjoyed year-over-year (YoY) foot traffic growth throughout most of 2023. And the chain, which currently operates in the West and in Texas, announced plans for an East Coast expansion in August 2023, signaling its intent to reach new consumer segments.
Diving into the visitation data reveals that 85°C not only enjoys strong monthly foot traffic but also draws more family households (defined by the Spatial.ai: PersonaLive dataset) to its trade areas compared to the statewide average. In California, Texas, and Washington, the trade areas show an overrepresentation of "Near-Urban Diverse Families," "Ultra Wealthy Families," and "Wealthy Suburban Families." This suggests that families – particularly affluent ones – are drawn to the chain.
As 85°C continues expanding, including into new markets and dining concepts – such as the recent addition of a dumpling shop – the chain hopes to continue bringing its Taiwanese flavors to a wider audience.
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Tartine and Porto’s are two Los Angeles natives with very different approaches to dough. Tartine, the brainchild of breadmasters Chad Robertson and Elizabeth Prueitt, is thought to have brought sourdough bread into the mainstream in the U.S. Porto’s, on the other hand, began as an immigrant-owned bakery in the 1970s, bringing the taste of Cuba to California.
And the two chains, while both based in the same city, see significant differences in their visitor demographics. Analyzing visitors to both bakery brands using the STI: Popstats dataset reveals that, while 29.1% of Porto’s captured market* trade area was made up of households with children – very close to the California median of 29.6% – only 17.3% of Tartine’s captured market* trade area was made up of households with children. And the median household income (HHI) also showed significant variance between the brands, with Tartine visitors earning significantly more than Porto’s and the California median HHI.
*A business’s captured market refers to the trade area with each census block weighted according to its share of visits to the chain or venue in question.
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The variance in demographics across these two iconic Los Angeles bakeries serves as testament to the city's diverse culinary landscape and ability to embrace and sustain a wide array of eateries.
The four bakeries prove that there is plenty of room in a crowded kitchen for different kinds of bakeries to succeed, from tiny artisan bakeries to major chains.
For more data-driven dining insights, visit placer.ai/blog.
Country clubs are changing with the times, moving away from the once-exclusive image of business dealings on the golf course. A more inclusive concept is taking root – and attracting a growing number of young members.
We took a closer look at the location intelligence metrics of country clubs throughout the country to understand how they are shifting and what might be driving these changes.
Golf and tennis, two country club stalwarts, surged in popularity over the COVID-19 pandemic, and that increase has sustained itself – more people than ever are playing the games. Looking at year-over-four-year (Yo4Y) visits to country clubs suggests that these establishments are reaping the benefits of the interest in both sports. Visits were elevated compared to the same period in 2019 for all but two months analyzed.
June, when the U.S. Open was held, saw the most impressive Yo4Y visit growth of 28.7%. The championship, the most-watched golf tournament since 2019, was held in the Los Angeles Country Club, and likely contributed to a spike in visits to golf clubs, either for U.S. Open-related events or a U.S. Open-inspired desire to golf. The year ended on a high note, with December visits to country clubs up by 12.1% Yo4Y – a solid indication that interest in membership clubs remains strong.
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Millennials, a consumer cohort that has historically shown little interest in joining country clubs, seem to be changing course and may be driving some of the visit growth. This population is increasingly seeking spaces to socialize and network – and in response, many golf clubs are shifting their offerings to appeal to a younger demographic. Location intelligence indicates that the strategy is working.
Examining country club demographics across the country – in Long Island, New York; Austin, Texas; Atlanta, Georgia; and Minneapolis, Minnesota – suggests a shift in membership makeup. Some of these areas have seen an influx of millennials in recent years, which likely expanded the pool of younger potential country club members. But the trade areas of many of the country clubs’ also skewed younger in 2023 than they did in 2019 – meaning that these clubs are attracting visitors from neighborhoods with lower median ages compared to the neighborhoods feeding visits to country clubs in 2019.
Some clubs, like the Capital City Country Club in Atlanta, Georgia, saw relatively small drops in median age – from 41.2 in 2019 to 40.2 in 2023. But other clubs saw much more pronounced drops – the Hazeltine National Golf Club near Minneapolis, Minnesota saw its median age drop by 7.8 years between 2019 and 2023. The Country Club Of The South in Atlanta, Georgia, also saw a Yo4Y drop in median age – from 38.0 to 31.8.
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Country clubs tend to have a steep financial barrier to entry, with costs including annual membership dues, initiation fees, and expenses for food and beverages. And perhaps unsurprisingly, most country club members boast a median household income (HHI) well above the nationwide median. And although younger demographics generally have to have less income than their older counterparts, the drop in median age across many country clubs does not seem to be having a major impact on the affluence of these clubs’ visitor bases.
Some clubs that experienced Yo4Y drops in the median age of visitors – Great Hills Country Club in Austin, Texas, for example – did see the median HHI of its visitors drop slightly. But for the most part, the median HHI of visitors to country clubs remained stable Yo4Y, and some, like the Edina Country Club in Minnesota, saw the median HHI grow Yo4Y. This suggests that the decline in median age within membership clubs may be driven by a desire for socializing and new experiences rather than a shift towards increased financial accessibility for a broader range of members.
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The shift in the demographics of country club visitors, marked by the rising number of younger members, is a trend that may solidify further. Clubs in tune with this demographic – young professionals and millennials – can consider what is important to this cohort to continue attracting the younger generation.
For more data-driven leisure and entertainment insights, visit placer.ai/blog.
Florida, known for its year-round sunny weather and iconic attractions like Disneyland and EPCOT, has long been a popular tourist destination. And though many people think of Miami and Orlando when planning a trip to Florida, Tampa is fast becoming one of the country's most popular getaway spots. The city has seen its tourism sector grow over the past few years, so we dove into the location analytics data to better understand these tourism trends.
Tampa has emerged as an attractive place for out-of-state home buyers and relocators in recent years – especially for younger generations looking to take advantage of the city’s status as an emerging tech hub as well as enjoy the pleasant climate and beautiful beaches. But examining foot traffic trends to Downtown Tampa also reveals Tampa’s growing popularity among out-of-state visitors.
Tampa International Airport – named the “best large airport in North America in 2023” – is growing fast, and visits to the Downtown Tampa POI from visitors coming from 250+ miles away were up almost every month of 2023, especially compared to pre-pandemic 2019. (Most places 250 miles or more outside Tampa are also outside Florida.) And although YoY foot traffic did dip some months, the drop was likely due to the comparison with a particularly strong 2022 that brought a record number of tourists to the Hillsborough County seat.
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Diving into the demographic data of visitors traveling to Downtown Tampa from at least 250 miles away helps shed light on who is driving this domestic tourism surge.
Between 2019 and 2023, the share of households with children in the trade areas feeding out-of-state visits to downtown Tampa grew from 25.9% in 2019 to 27.1% in 2023. Similarly, the median household income (HHI) of visitors to the city’s downtown also increased from $85.1K/year to $91.8K/year. These shifts in visitor demographics suggest that at least some of the tourism surge to the city may be driven by families with children and wealthy families.
It seems, then, that Tampa is on the rise not just as a retirement hub or as a millennial and Gen-Z hotspot. The city is also attracting an increasingly larger share of affluent families with children, indicating that this rising Florida star with something for everyone may soar even higher in 2024.
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With its pristine beaches and diverse attractions, Tampa has long boasted a robust tourism sector – and the city’s popularity has surged even higher post-pandemic. So far, 2024 looks promising for the city’s tourism segment. Will Tampa continue to attract vacationers and sight-seers?
Visit placer.ai/blog to find out.
As discussed last week, 2023 was a year that forced restaurant operators to stay agile amid inflationary headwinds and changes in consumer behavior, daypart shifts, new approaches to drive-thru, and population migration changes. This week’s ICR Conference also gave us a chance to speak with the management team from more than 25 restaurant chains as well as their investors to better understand their lessons from 2023 and how they plan to apply them in 2024.
Despite most chains reporting that visits are still down on a year-over-year basis, there was a sense of optimism among many of the operators we spoke to. Many acknowledged that there were still pressures weighing on consumer spending, but that the strategies put in place during 2023 to stabilize visitation trends had been working (including an emphasis on value, elevated experience, adopting new restaurant formats to better address a wider range of commercial property types, and new menu innovations). Several management teams acknowledged that the contractor availability and equipment supply chain bottlenecks that had plagued new store openings in 2023 had started to dissipate, with several chains planning to resume or even exceed their pre-pandemic pace of restaurant openings (although many admitted that new store buildout costs are still running 25%-30% higher than they were 5 years ago). Given the higher costs involved with new store openings (and the risk of opening a location in a subpar site), there was a heavy emphasis on harnessing new data sources to better understand migration trends, trade area demographics, and incumbent competition when making site selection opportunities (and thank you to customers like Dave & Buster’s and Chuy’s for highlighting how they are incorporating Placer data into these decisions).
Below, we discuss a few key trends that restaurant operators and their commercial real estate partners should be thinking about as we move into 2024.
Perhaps it shouldn’t be surprising at an event where several restaurant operators were looking to raise capital, but the overarching theme from most management teams that we spoke to this week was that they were ready to accelerate unit expansion plans. Expansion strategies differed by concept, but most operators planned to open new locations across a combination of existing and new markets. With respect to new markets, many operators told us they were prioritizing South and Southeastern markets for new market expansion, echoing what we heard from McDonald’s and others last year. Below, we’ve presented the latest data from Placer’s Migration Trends Report which shows total population changes by market from November 2019-November 2023. Indeed, our data confirms that many South (Phoenix, Texas) and Southeast (Central Florida, Carolinas) markets were among the highest growth populations in the U.S. over the past four years.
That said, with so many restaurant operators targeting these regions, we heard from several executives about the importance of fully understanding the makeup of the markets. Said another way, just because a market has seen meaningful population growth, it doesn’t necessarily mean it’s a candidate for expansion. Below, we’ve presented the same migration map as above (2019-2023 population growth), but with a origin/destination household income filter. A red dot on this map indicates that a market saw the average household income fall because of migration, while a green dot indicates that a market saw an increase in household income. Here, we see a slightly different story, as many higher growth populations actually saw a decline in household income due to migration. We also see the impact of the urban/suburban migration shift that we’ve discussed in the past, with many smaller markets across the Carolinas and Central Florida seeing the highest household income growth versus 2019.
Below, we’ve attempted to bring the two charts together and identify markets that have not only seen population growth but also a significant increase in household income. We see markets like Las Vegas and other areas in Central Florida and the Carolinas region score well using this methodology, but a number of other markets like Boise City, ID, Lakeland, WI, and Spokane, WA also seeing increases in population but also an increase in their average household income.
Most U.S. markets have gone through significant changes post-pandemic both in terms of population size and population makeup. At the end of the day, it's important for restaurants and retailers to not only understand both of these factors when evaluating new markets for growth. We’ve certainly seen success stories–Portillo’s continues to thrive in Texas, for example–but we’ve also seen cases where restaurant openings haven’t been as successful in newer markets because of migration changes.
We spoke about trends in the eatertainment category last year with the conclusion being that these concepts were still key in driving traffic to commercial properties (despite facing tougher year-over-year comparisons from the great reopening we saw in 2022). There was a palpable sense of optimism among the eatertainment concepts we spoke to at the event, whether they were more focused on entertainment (including Dave & Buster’s, Puttshack, and Pinstripes) or interactive dining (Kura Revolving Sushi Bar or GEN Korean BBQ).
We’ve updated the eatertainment versus casual dining category visit per location analysis we’ve presented in the past below. Although eatertainment’s visit per location outperformance narrowed versus casual dining during Q4 2023, we believe this is a byproduct of seasonality (shift to sit-down dining during the holiday season) and expect the gap to widen once again during Q1 2024.
Most of the eatertainment concepts we spoke to at the ICR conference planned a two-pronged approach to unit expansion in 2024: infilling existing markets and establishing a beachhead in newer markets. Most concepts in this category were planning to grow their store bases by at least double-digit growth rates in 2024, with some like Pinstripes are forecasting 30%+ unit growth this year. Other like Dave & Buster’s are planning to focus on remodeling activity on top of new unit openings to modernize their locations. As demand for eatertainment remains strong among consumers and mall owners, we anticipate that this will remain one of the past growing categories in dining during 2024.
Casual dining concepts often have a reputation of catering to an older population. However, Darden’s management team called out several demographic trends that should benefit its different brands (including Olive Garden, Longhorn Steakhouse, Cheddar’s, Yardhouse, and others). First, while the percentage of the population in their peak earning years (typically between the ages of 35 and 55) had been on a downward trend for much of the 2000s and part of the 2010s, we’ve seen a reversal of this trend in recent years, which should stimulate demand for full-service dining. Second, the company noted that it over-indexes to millennials. Our data reinforces this, as the potential trade area audience profile by age cohort for Olive Garden (below) indicates a higher percentage of population between the ages of 30-49, encapsulating much of the millennial age range (roughly 27-42 years old today). Last year, we noted that some of the shift to earlier dining times may have been due to changing demographic trends in cities, with an increase in younger families in urban markets needing earlier dining times. Darden's commentary offers further validation of these trends and offers hope for other casual dining chains as this generation cohort continues to enter their peak earning years.
Last year, we noted that some of the shift to earlier dining times may have been due to changing demographic trends in cities, with an increase in younger families in urban markets needing earlier dining times. Darden's commentary offers further validation of these trends and offers hope for other casual dining chains as this generation cohort continues to enter their peak earning years.
Grocery anchors proved to be a saving grace for many a shopping center during COVID. With apparel and dining shut down and only essential retailers allowed to open, many centers suddenly found that having a superstore/mass merchant like Walmart or Target, a warehouse like Costco or Sam’s Club, or a grocery store on the premises helped to steady some of the waves of traffic fluctuations. Whether it was as part of a specific center or more broadly adding grocery-anchored centers to a portfolio, REITs started looking more closely at the role of grocery in their centers. Indeed, we have written about the inclusion of specialty grocery stores and ethnic grocery stores in shopping centers being even rather quotidian these days. We’ve also written about the redevelopment of shopping centers that include food halls as part of their renaissance.
So it was rather surprising that Bristol Farms’ concept Newfound Market, which opened at the Irvine Spectrum in March 2022, recently announced that it is closing. The initial concept was to be “very much about experience…diving in deep on food and beverage…curated, yet everyday.” It was to feature seven of Bristol Farms’ own chef-created restaurant brands.
We take a look at some Placer statistics to see what might have accounted for reduced traffic for what sounded like an amazing concept. As a control, we compared the Bristol Farms in Irvine to one in nearby Newport Beach. We see that when Newfound Market first opened, it had nearly twice the traffic of the one in Newport Beach. This could be due to overall excitement about the chef-driven concepts, wanting to check out a new grocery store, or other factors. However, traffic for Newfound Market began dwindling in Fall 2022, and fell even further in Fall 2023, likely leading to its closure.
If we look at variance, we see that during the same time period, traffic grew for Irvine Spectrum Center as a whole (note it was one of our spectacular callouts for holiday shopping 2023 in terms of year-over-year growth), and traffic was fairly steady for the Newport Beach branch of the Bristol Farms.
How much did the number of Newfound Market shoppers change over time? We compared the Bristol Farms Newfound Market Shopper from Apr.-Dec. 2022 with that of the shopper from Apr.-Dec. 2023. During that time, there were over 150K fewer visits and around 100K fewer visitors. Visit frequency also decreased from 1.54 to 1.4 (below).
There was a slight dip in the average household income of the visitor.
There was a marked decrease in the proportion of Ultra Wealthy Families coming in 2023, and somewhat of a decrease of Wealthy Suburban Families.
Interestingly, the trade area has expanded from 2022 to 2023, as shown by the increase in red dots from further afield.
And indeed, Placer analysis reveals that the trade area increased by 28 square miles. On one hand, this is a plus, showing that there is a magnetic draw to a wider audience. On the other hand, given that most grocery stores live on weekly visits from a much tighter trade area, this could indicate that a trip to Irvine Spectrum and/or the Bristol Farms Newfound Market began to fall under the umbrella of a “destination” visit, rather than a regular “essential” visit. Over time, those locals who associate the Irvine Spectrum more with a Ferris Wheel might not have grocery shopping there as top-of-mind, and those who come from further away have already tried out the food hall.
The average visit frequency to Bristol Farms Newfound market was 1.54 from Apr.-Dec. 2022 and 1.40 from Apr.-Dec. 2023. In contrast, the average visit frequency to the top four most-trafficked Bristol Farms was closer to 3-4 visits, a rate more than double. Most telling is when we look at the bar chart below and see that the number of one-time visitors versus 30+ time visitors at Newfound Market is almost in direct contrast to its four other peers, who have a much higher proportion of their visits in the 10+ range.
This by no means negates the fact that grocery stores and food halls can be wonderful additions to shopping centers. For instance, 99 Ranch opened at Westfield Oakridge around the same time period (March 2022) and to date it has proven to have a steady stream of traffic. Keep in mind that Oakridge is more of your neighborhood mall with typical mall retailers, hence more likely to be part of a weekly or monthly routine.
Comparing year-over-year variance, the 99 Ranch at Oakridge has also overindexed on a percentage basis compared to the overall mall. The grocery store draws from a trade area of 58 square miles, with an average of 2.86 visits.
1. Retail is deeply divided. Visits to value and luxury apparel segments grew YoY in 2025 while traffic to mid-tier retailers flagged.
2. Upscale dining momentum reflects similar bifurcation. More resilient, affluent consumers are bolstering fine-dining traffic.
3. Authenticity is key. Brands successfully executing on a clear sense of purpose – from community-driven grocers to bookstores – are driving consistent visit growth.
4. Online and offline retail are converging into a seamless ecosystem. As consumers seek online value and in-person convenience, AI fulfillment, dark stores, and local pickup are accelerating.
5. Digitally native brands expanding into physical retail are redefining omnichannel. These chains provide a blueprint for merging digital efficiency with personalized in-store experiences.
6. Traditionally urban brands are shifting to suburbia to capture new audiences. With consumers rooted in hybrid lifestyles and growing suburban demand, chains that adapt their footprints drive fresh traffic.
7. Expansion into college markets and celebrity pop-ups are helping retailers and malls connect with younger consumers. Brands that grew their footprints in college towns or on campuses increased their Gen Z traffic, as did malls that hosted celebrity or influencer activations.
Retail and dining faced another complex year in 2025. Persistent economic headwinds and uncertainty surrounding tariffs intensified consumers’ focus on value, even as affluent shoppers continued to indulge in luxury brands and upscale dining experiences.
Yet the year also revealed behavioral shifts that extended beyond price sensitivity. Shoppers increasingly prioritized brands that convey authenticity and a clear sense of purpose – those that deliver value not only through price, but through omnichannel convenience, product quality, and brand ethos.
For their part, retailers and malls continued to evolve, adopting strategies to capture both the expanding suburban market and a rising generation of younger consumers emerging as a defining force in retail.
How have these trends evolved, and how will they shape the retail landscape in 2026? We dove into the data to find out.
The first three quarters of 2025 underscored a widening divide in the apparel sector, with strength at both ends of the price and income spectrums.
Off-price retailers and thrift stores, which draw shoppers from lower- and middle-income trade areas, gained significant ground – reflecting consumers’ ongoing search for value and treasure-hunt experiences that feel both economical and rewarding. At the same time, luxury maintained modest growth, showing that high-income shoppers remain resilient and willing to spend on premium experiences. Meanwhile, traditional apparel and mid-tier department stores continued to see visit declines, signaling further pressure on the retail middle. Retailers such as Target and Kohl’s, traditional staples of this middle segment, are contending with the challenge of defining their identity to consumers in a market increasingly split between value and luxury.
Looking ahead to 2026, mid-tier retailers will need to navigate a complex and polarized landscape. Without the clear positioning enjoyed by value and luxury players, success will require sharper differentiation and disciplined execution. But though the middle remains a tough place to compete, it still holds potential: Brands that can redefine relevance – something many of these same chains achieved just a few years ago – stand to capture consumers with spending power.
A similar bifurcation dynamic is also unfolding in the dining sector.
Upscale full-service restaurants (FSRs) are outperforming their casual dining counterparts, as higher-income consumers – and those dining out for special occasions – seek elevated experiences at fine-dining chains.
At the same time, more cost-conscious diners are trading down from casual dining FSRs to fast-casual chains, which continue to outperform the casual dining segment. Fast-casual brands are also benefiting from trading up within the limited-service segment, as consumers who choose to eat out – rather than eat at home or grab a lower-cost prepared meal at a c-store or grocery – opt for more experiences that feel more premium yet remain accessible.
Across both retail and dining, bifurcation doesn’t tell the whole story. Even as spending concentrates at the high and low ends of the market, a growing number of brands are succeeding by delivering an experience that feels intentional, distinctive, and true to their identity. These concepts share a clear raison d’être – a sense of purpose that resonates with consumers – as well as successful execution. The data shows that brands providing this kind of “on-point” experience are driving consistent visit growth in 2025, signaling that authenticity may be important retail currency in 2026.
Trader Joe’s sustained momentum reflects its ability to make shopping feel like discovery. The chain’s locally-inspired assortments, roughly 80% private-label mix, and steady rotation of seasonal products keep visits fresh and engagement high.
Sprouts, for its part, continues to benefit from a sharpened identity centered on freshness, sustainability, and health. Its smaller-format stores, curated product mix, and messaging around healthy living have helped it build a loyal base of wellness‐oriented shoppers.
Meanwhile, Barnes & Noble’s transformation offers a compelling case study in the power of experience. Its strategy of empowering local managers to curate store selections and host community events has turned stores into cultural touchpoints – driving increased visits and dwell times.
All three brands derive their strength from their clarity of purpose – illustrating how authenticity and intentionality are becoming meaningful factors shaping consumer engagement.
Authenticity isn’t limited to national names. Regional players such as H-E-B and In-N-Out Burger demonstrate how deeply ingrained local identity can translate into sustained growth.
H-E-B’s community-driven ethos, local sourcing, and operational excellence have built trust across Texas markets, helping it remain one of the country’s most beloved grocery chains, with high rates of shoppers visiting multiple times a month. And in the quick-service category, California-native In-N-Out Burger stands out for its quality, nostalgia, and mystique, as the chain continues to attract visitation trends that exceed national QSR benchmarks.
These brands demonstrate that authenticity can have a local element. Their success reflects not just product strength or efficiency, but a deeper connection to the communities they serve.
While regional and experience-driven brands continue to build deep consumer connections, the broader retail landscape is also being reshaped by operational innovation. As technology and infrastructure improve, retailers are finding new ways to merge digital efficiency with convenient physical touchpoints.
E-commerce growth and in-store activity are increasingly interconnected. Visits to ecommerce distribution centers* climbed steadily between October 2021 and September 2025, while the share of short, under-10-minute trips to big-box chains Target, Walmart, BJ’s Wholesale Club, and Sam’s Club also increased. Together, these patterns suggest that while online shopping continues to expand, consumers remain highly engaged with physical locations through buy-online-pick-up-in-store (BOPIS) and same-day fulfillment channels – combining the value of online deals with the convenience of quick, local pickup.
This trend also reflects ongoing advancements in AI-driven fulfillment and Walmart’s testing of dark stores – retail spaces converted into local fulfillment hubs that accelerate delivery and enable quick customer pickup. These innovations are shortening fulfillment windows while optimizing store networks for hybrid demand.
As retailers continue to blur the boundaries between digital and physical commerce in 2026, expect them to become increasingly complementary parts of a single, omnichannel ecosystem.
*The Placer.ai E-commerce Distribution Center Index measures foot traffic across more than 400 distribution centers nationwide, including facilities operated by leading retailers such as Amazon, Walmart, and Target. Designed as a barometer for U.S. e-commerce activity, the index captures two key audiences: employees, estimated through dwell-time patterns, and visitors, who often represent logistics partners delivering raw materials, moving in-process goods, or collecting finished products.
The resurgence of digitally native brands embracing physical retail underscores how online and offline strategies are converging into an integrated model, combining digital efficiency with the benefits of a physical presence.
Framebridge, a DTC custom framing brand, offers a clear example of this trend. As the brand has expanded its footprint, the average number of monthly visits to each of its locations rose sharply throughout 2025.
Framebridge’s success lies in its well-executed omnichannel model. Customers can place orders online or in store, with the option to ship directly to their homes or pick up in person.
But for Framebridge, physical locations aren’t just about convenience. Art and memories are often one of a kind, so having knowledgeable staff in store and the opportunity to engage with materials firsthand transforms a transaction into a personalized, consultative experience.
Framebridge exemplifies how digitally native brands are merging the ease of online shopping with physical spaces that provide a personal touch. And more digitally native brands, like Gymshark, are looking to bring their business offline with the hope of adding value for consumers.
As retailers advance their omnichannel strategies, another enduring shift is reshaping the retail map post-pandemic – the continued rise of suburban traffic. Brands that entered the pandemic with strong suburban footprints were among the first to benefit as in-person activity rebounded, while urban-focused chains that expanded outward have met migrating consumers and captured new audiences anchored in hybrid lifestyles and local shopping routines.
Large-format and drive-thru focused brands like Costco, Cava, and Dutch Bros. entered the pandemic era from a position of strength as they are traditionally situated in suburban and exurban areas. As consumers spent more time close to home and away from urban centers, these chains captured heightened local demand and saw visits rebound rapidly once in-person shopping resumed.
And as the pandemic reshaped consumer traffic patterns, brands like Shake Shack and Chipotle quickly recognized emerging opportunities in suburban markets and adjusted their strategies to capture this shifting demand. For Shake Shack – a brand once defined by its urban storefronts – the shift toward suburban drive-thrus and stand-alone locations represented a significant pivot. Chipotle followed a similar path, accelerating its suburban expansion through the rollout of “Chipotlane” drive-thru lanes.
Arriving somewhat later to the suburban landscape, sweetgreen, once synonymous with its urban footprint, opened its first drive-thru in 2022, and by 2024 had made suburban markets a core pillar of its growth strategy.
These real estate moves positioned all three brands to capture demand from remote and hybrid workers, helping sustain visit growth well above pre-pandemic baselines.
As suburban demand continues to grow, the suburbs will likely remain a critical growth frontier for many brands in the year ahead.
Investment in suburban markets underscores how changing market conditions and strategy adaptation can allow brands to meet consumers where they are. And a parallel trend is unfolding in college towns and youth-dense trade areas, where brands are channeling investment to capture rising Gen Z spending power.
Expansion in college-anchored markets, paired with celebrity and influencer-driven pop-ups, is helping retailers build cultural relevance and increase engagement with this emerging consumer base.
The graph below underscores how targeted expansion into college-anchored markets can meaningfully shift audience composition. Over the last several years, many brands have expanded their near-campus footprints – and in turn, attracted a higher share of the Spatial.ai:PersonaLive “Young Urban Singles” segment, one highly aligned with Gen Z consumers.
CAVA’s rapid unit growth, including openings near major universities and in college towns, helped the brand increase its share of “Young Urban Singles” within its captured trade areas between October 2018-September 2019 and October 2024-September 2025. Meanwhile, Panda Express and Raising Cane's, which already had relatively large shares of the segment six years ago, have also invested in college-adjacent locations, lifting their “Young Urban Singles” audience share.
Even legacy mass retailer Target benefited from small-format and large store expansions near universities – growing its captured market share of “Young Urban Singles”.
These shifts suggest that college towns will continue to be strategic growth markets, including for luxury brands like Hermès. By making inroads in college towns and with Gen Z shoppers, brands can strengthen loyalty early and build durable market share that remains as these young adults move on from campus life.
As Gen Z’s influence expands beyond campus borders, retail engagement is increasingly driven by cultural moments that resonate with this cohort. And malls are finding that temporary pop-ups including influencer collaborations and celebrity-led activations can attract these young consumers.
At The Grove, the Pandora pop-up with brand ambassador girl-group Katseye in October 2024 led to a modest but significant increase in the Gen Z-dominant “Young Professionals” and “Young Urban Singles” segments within the mall’s captured trade area during the first week of the activation – compared to the average for the last twelve months.
Similarly, at Westfield Century City, the Taylor Swift x TikTok activation from October 3rd-9th, 2025 – which allowed fans to immerse themselves in the sets from the viral “The Fate of Ophelia” music video boosted the shares of “Young Urban Singles” and Young Professionals”, underscoring the star power of everything Taylor Swift.
And at American Dream, the pattern extended beyond younger audiences. On September 5th and 6th, 2025, Ninja Kidz attended the grand opening of their Action Park while Salish Matters made an appearance at the mall on September 6th for her skincare pop-up – which drew such large crowds that it had to be shut down. During these two event days, the mall’s shares of both “Young Professionals” and “Ultra-Wealthy Families” increased substantially, highlighting that pop-up events can draw young and affluent family audiences.
Together, these examples reinforce that, in 2026, the integration of short-term pop-ups will continue to be a strategy for malls and individual brands to gain relevance for key demographic segments.
2025 reinforced that retail remains as dynamic as ever. Value continues to anchor decisions, but consumers are redefining what value means – blending price sensitivity with expectations for authenticity. And in the current retail landscape, online and physical retail are growing more interconnected as consumers demand convenience and experience.
In 2026, adaptability will be retailers’ greatest competitive edge. The next era of retail will belong to brands that can continue to refine their operating strategy – while staying true to a clear brand identity.
1) Retail foot traffic faces lingering pressure – making promotions more critical than ever. Financial uncertainty, tariffs, and inflation continue to weigh on discretionary spending, making well-timed, targeted holiday promotions essential to reignite demand and drive in-store traffic.
2) The retail divide appears set to widen this holiday season – Luxury and off-price apparel are both outpacing overall retail, reflecting a deepening bifurcation of consumer behavior. And this December, the affluence gap between the two categories is expected to expand further, underscoring opportunities to engage both premium and value-focused shoppers across segments.
3) Despite slower overall performance, beauty and electronics have performed well during recent retail milestones. To make the most of this momentum, advertisers should align campaigns with shifting holiday audiences – electronics toward married homeowners and beauty toward affluent suburban families.
4) Early Promotions Could Lift In-Store Traffic – Last year, early holiday campaigns helped offset a shorter shopping season and sustain strong results. With another condensed window and continued shipping disruptions, retailers who start early and emphasize in-store availability will be best positioned to capture additional visits and outperform 2024’s results.
The holiday season is fast approaching, but this year’s backdrop looks especially complex. Consumers are navigating heightened financial uncertainty, with tariffs driving up prices and disrupting supply, while inflation continues to weigh on discretionary spending.
For retailers and advertisers, the stakes are high. The holiday period remains a critical window for promotional engagement, and success will depend on understanding consumer behavior and crafting promotions that are timed, targeted, and designed to meet shoppers where they are.
We turned to foot traffic data to uncover the key trends shaping this season’s retail environment, and to identify promotional strategies likely to succeed.
Consumer activity appeared strong in most of early 2025 – except in February, when extreme weather and leap-year comparisons drove sharp year-over-year (YoY) declines. But foot traffic slowed this summer, highlighting the toll of lingering financial uncertainty and strain.
For advertisers, this underscores how pivotal seasonal promotions will be in reigniting demand. With many consumers cutting back on discretionary spending, well-timed and well-targeted campaigns will be essential to encourage shoppers to spend more freely during the holidays. These promotions don’t have to rely solely on price cuts — pop-culture collaborations and other creative product launches have also proven highly effective in driving traffic this year.
> Financial uncertainty and tighter household budgets are weighing on retail foot traffic this year – making effective holiday promotions more critical than ever.
Still, not all retail categories have been equally affected by broader economic headwinds. Some segments have experienced softer demand, signaling where advertisers may need to take a more measured, efficiency-focused approach. Others, however, have shown notable resilience – offering opportunities to double down on creative promotions that deepen engagement during the holidays.
One such segment is home furnishings, which has seen YoY traffic gains over the past 12 months, driven by the strong performance of discount chains as shoppers favor accessible décor updates over large-scale renovations. Strategic campaigns highlighting affordable refreshes and quick “holiday-ready” makeovers could give the category an additional lift in Q4, as households look to update their spaces in preparation for hosting family and friends.
But the biggest gains have been in the apparel category, where a bifurcation trend has emerged, boosting visits at both luxury and off-price retailers. The success of both segments underscores promotional strategies that can amplify momentum – steep-value discounts on one end of the spectrum, and exclusivity and quality on the other. Advertisers across retail segments can adapt this dual approach to engage both budget-driven and premium audiences effectively.
And demographic data reveals just how deeply entrenched this bifurcation has become – especially during the holiday season.
The chart below examines monthly changes in the median household incomes (HHIs) of luxury and off-price retailers’ captured markets since January 2023. Even small shifts in HHI across major retail categories can signal meaningful changes in audience composition – and these patterns tell a clear story.
In luxury apparel, where the median HHI is well above the national average of $79.6K, visitor income follows a distinct seasonal rhythm. During the early holiday shopping period, HHI remains lower in October and dips slightly in November as middle-income shoppers take advantage of early promotions to snag products that may be out of reach the rest of the year. It then rises in December as affluent consumers return to purchase gifts. Notably, luxury HHI has trended upward since 2023 – with each holiday peak higher than the last – suggesting that this December’s visitor base will be even more affluent than last year.
For advertisers, this means late-season campaigns should prioritize prestige audiences while still engaging aspirational shoppers during early holiday promotions like Black Friday.
In the off-price apparel segment, on the other hand, median HHI typically declines during the holidays – especially in December – indicating an influx of more price-sensitive shoppers. And over time, this visitor base has become even more value-driven, reinforcing the importance of promotional messaging that emphasizes unbeatable deals and savings.
Together, these patterns once again highlight the growing need for tailored strategies: premium experiences for high earners and sharp value propositions for cost-conscious consumers – a lesson that may extend well beyond these categories.
>The retail divide is expected to deepen further in December 2025, with off-price retailers drawing more value-driven shoppers and luxury brands attracting increasingly affluent consumers.
In a challenging economic environment, one might expect promotions around key retail milestones to prompt consumers to deviate from their usual habits, experimenting with new brands or categories. Yet the data shows that, for the most part, shoppers instead deepened their engagement with the retailers they already patronize – utilizing holiday promotions to buy the same products at better prices.
The graph below shows that during recent shopping milestones, the off-price and luxury categories both stood out in YoY performance – reflecting the strong momentum sustained by both segments over the past twelve months.
Still, the graph above also highlights two additional segments potentially poised for holiday success: beauty & self care and electronics.
Despite slower traffic over the past year, beauty retailers saw notable spikes around key recent promotional moments – including Black Friday, Mother’s Day, and Memorial Day. And although electronics retailers continued to face headwinds as consumers delayed big-ticket purchases – including during last year’s Black Friday – more recent milestones have seen traffic stabilize or even increase YoY.
This indicates that the right promotional environment can still effectively drive engagement in these discretionary categories, and that deal-driven behavior is likely to remain a defining theme this holiday season. In addition, as the replacement cycle begins for major electronics first purchased during the pandemic, shoppers may be especially willing to upgrade to a new TV or laptop if the right offer comes along.
But to make the most of the opportunity presented by Q4, advertisers and retailers in the beauty and electronics spaces should pay close attention to the shifting demographics of their in-store audiences during the holiday season.
For electronics retailers, married couples and homeowners become increasingly important during the peak holiday shopping period. Their share in the category’s captured market rises consistently each December, indicating that campaigns emphasizing household upgrades, family entertainment, and quality-of-life improvements may resonate most effectively in late Q4.
In contrast, beauty retailers – typically buoyed by young professionals – see their audience composition shift towards suburbia during the holidays. In December, the share of wealthy suburban families in beauty retailers’ captured markets grows meaningfully, while the share of young professionals declines. Advertisers can capitalize by highlighting premium bundles, limited-edition sets, and gifting options that speak directly to these households’ desire for premium, family-oriented products.
> Off-price and luxury retailers maintained strong performance during major retail milestones, but beauty and electronics stand out as rising opportunities for the 2025 holiday season.
> As holiday demographics shift during the holiday season – with electronics drawing more married homeowners and beauty attracting wealthier suburban families – campaigns that reflect these audiences’ lifestyles and priorities will resonate most.
Timing is also a decisive factor in retailer and advertiser success during the holiday season.
Traditionally, the “core” holiday retail period begins with Black Friday and continues until Christmas Eve. But in 2024, there was one fewer week between these two milestones compared to the previous year. And to compensate, many retailers launched an “early” holiday season, rolling out promotions in October and early November to maximize consumer engagement.
As the graph below shows, the shorter “core” season of 2024 unsurprisingly drew less in-store traffic across retail categories than the longer period the year before. Yet by embracing early promotions, retailers offset much of this shortfall, leading to overall holiday season results that, in many cases, matched or even exceeded 2023’s performance.
Looking ahead, 2025 once again brings a compressed “core” shopping window. And with shipping disruptions still influenced by shifting tariff regulations, more consumers may turn to brick-and-mortar stores earlier in the season to ensure timely purchases – further supporting offline traffic.
If retailers and advertisers double down on early-season engagement while continuing to drive momentum through the “core” weeks, YoY traffic for the 2025 holiday season could deliver even bigger overall gains than those seen in 2024.
> Last year, early holiday promotions helped offset a shorter core holiday season.
> In 2025, retail and advertising professionals are again faced with a relatively short core shopping season. And aware of the condensed timeline and shipping disruptions, more shoppers may opt for early in-store purchases to avoid the risk of delayed deliveries.
This holiday season will reward advertisers and retailers who recognize the growing retail divide and tailor their messaging to the shoppers most likely to visit during the holidays – whether married homeowners on the hunt for electronics or affluent suburban families seeking beauty products. As in 2024, acting early to offset a shorter core shopping period will be essential to capturing demand. And those who combine sharp timing with audience insight will be best positioned to turn a complex season into a strong finish.
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1) Value Wins in 2025: Discount & Dollar Stores and Off-Price Apparel are outperforming as consumers prioritize value and the “treasure-hunt” experience.
2) Small Splurges Over Big Projects: Clothing and Home Furnishing traffic remains strong as shoppers favor accessible wardrobe updates and decor refreshes instead of major renovations.
3) Big-Ticket Weakness: Electronics and Home Improvement visits continue to lag, reflecting a continued deferment of larger purchases.
4) Bifurcation in Apparel: Visits to off-price and luxury segments are growing, while general apparel, athleisure, and department stores face ongoing pressures from consumer trade-downs.
5) Income Dynamics Shape Apparel: Higher-income shoppers sustain luxury and athleisure, while off-price is driving traffic from more lower-income consumers.
6) Beauty Normalizes but Stays Relevant: After a pandemic-driven surge, YoY declines likely indicate that beauty visits are stabilizing; shorter trips are giving way to longer visits as retailers deploy new tech and immersive experiences.
Economic headwinds, including tariffs and higher everyday costs, are limiting discretionary budgets and prompting consumers to make more selective choices about where they spend. But despite these pressures, foot traffic to several discretionary retail categories continues to thrive year-over-year (YoY).
Of the discretionary categories analyzed, fitness and apparel had the strongest year-over-year traffic trends – likely thanks to consumers finding perceived value in these segments.
Fitness and apparel (boosted by off-price) appeal to value-driven, experience seeking consumers – fitness thanks to its membership model of unlimited visits for an often low fee, and off-price with its discount prices and treasure-hunt dynamic. Both categories may also be riding a cultural wave tied to the growing use of GLP-1s, as more consumers pursue fitness goals and refresh their wardrobes to match changing lifestyles and sizes.
Big-ticket categories, including electronics, also faced significant challenges, as tighter consumer budgets hamper growth in the space. Traffic to home improvement retailers also generally declined, as lagging home sales and consumers putting off costly renovations likely contributed to the softness in the space.
But home furnishing visits pulled ahead in July and August 2025 – benefitting from strong performances at discount chains such as HomeGoods – suggesting that consumers are directing their home-oriented spending towards more accessible decor.
The beauty sector – typically a resilient "affordable luxury" category – also experienced declines in recent months. The slowdown can be partially attributed to stabilization following several years of intense growth, but it may also mean that consumers are simplifying their beauty routines or shifting their beauty buying online.
> Traffic to fitness and apparel chains – led by off-price – continued to grow YoY in 2025, as value and experiences continue to draw consumers.
> Consumers are shopping for accessible home decor upgrades to refresh their space rather than undertaking major renovations.
> Shoppers are holding off on big-ticket purchases, leading to YoY declines in the electronics and home improvement categories.
> Beauty has experienced softening traffic trends as the sector stabilizes following its recent years of hypergrowth as shoppers simplify routines and shift some of their spending online.
After two years of visit declines, the Home Furnishings category rebounded in 2025, with visits up 4.9% YoY between January and August. By contrast, Home Improvement continued its multi-year downward trend, though the pace of decline appears to have slowed.
So what’s fueling Home Furnishings’ resurgence while Home Improvement visits remain soft? Probably a combination of factors, including a more affluent shopper base and a product mix that includes a variety of lower-ticket items.
On the audience side, this category draws a much larger share of visits from suburban and urban areas, with a median household income well above that of home improvement shoppers. The differences are especially pronounced when analyzing the audience in their captured markets – indicating that the gap stems not just from store locations, but from meaningful differences in the types of consumers each category attracts.
Home improvement's larger share of rural visits is not accidental – home improvement leaders have been intentionally expanding into smaller markets for a while. But while betting on rural markets is likely to pay off down the line, home improvement may continue to face headwinds in the near future as its rural shopper base grapples with fewer discretionary dollars.
On the merchandise side, home improvement chains cater to larger renovations and higher-cost projects – and have likely been impacted by the slowdown in larger-ticket purchases which is also impacting the electronics space. Meanwhile, home furnishing chains carry a large assortment of lower-ticket items, including home decor, accessories, and tableware.
Consumers are still spending more time at home now than they were pre-COVID, and investing in comfortable living spaces is more important than ever. And although many high-income consumers are also tightening their belts, upgrading tableware or even a piece of furniture is still much cheaper than undertaking a renovation – which could explain the differences in traffic trends.
Traditional apparel, mid-tier department stores, and activewear chains all experienced similar levels of YoY traffic declines in 2025 YTD, as shown in the graph above. But analyzing traffic data from 2021 shows that each segment's dip is part of a trajectory unique to that segment.
Traffic to mid-tier department stores has been trending downward since 2021, a shift tied not only to macroeconomic headwinds but also to structural changes in the sector. The pandemic accelerated e-commerce adoption, hitting department stores particularly hard as consumers seeking one-stop shopping and broad assortments increasingly turned to the convenience of online channels.
Traffic to traditional apparel chains has also not fully recovered from the pandemic, but the segment did consistently outperform mid-tier department stores and luxury retailers between 2021 and 2024. But in H1 2025, the dynamic with luxury shifted, so that traffic trends at luxury apparel retailers are now stronger than at traditional apparel both YoY and compared to Q1 2019. This highlights the current bifurcation of consumer spending also in the apparel space, as luxury and off-price segments outperform mid-market chains.
In contrast, the activewear & athleisure category continues to outperform its pre-pandemic baseline, despite experiencing a slight YoY softening in 2025 as consumers tighten their budgets. The category has capitalized on post-lockdown lifestyle shifts, and comfort-driven wardrobes that blur the line between work, fitness, and leisure remain entrenched consumer staples several years on.
The two segments with the highest YoY growth – off-price and luxury – are at the two ends of the spectrum in terms of household income levels, highlighting the bifurcation that has characterized much of the retail space in 2025. And luxury and off-price are also benefiting from larger consumer trends that are boosting performance at both premium and value-focused retailers.
In-store traffic behavior reveals that these two segments enjoy the longest average dwell times in the apparel category, with an average visit to a luxury or off-price retailer lasting 39.2 and 41.3 minutes, respectively. This suggests that consumers are drawn to the experiential aspect of both segments – treasure hunting at off-price chains or indulging in a sense of prestige at a luxury retailer. Together, these patterns highlight that – despite appealing to different consumer groups – both ends of the market are thriving by offering shopping experiences that foster longer engagement.
> Off-price and luxury segments are outperforming, while general apparel, athleisure, and department store visits lag YoY under tariff pressures and consumer trade-downs.
> Looking over the longer term reveals that athleisure is still far ahead of its pre-pandemic baseline – even if YoY demand has softened.
> Luxury and off-price both are thriving by offering shopping experiences that foster longer engagement.
The beauty sector has long benefitted from the “lipstick effect” — the tendency for consumers to indulge in small luxuries even when discretionary spending is constrained. And while the beauty category’s softening in today’s cautious spending environment could suggest that this effect has weakened, a longer view of the data tells a more nuanced story.
Beauty visits grew significantly between 2021 and 2024, fueled by a confluence of factors including post-pandemic “revenge shopping,” demand for bolder looks as consumers returned to social life, and new store openings and retail partnerships. Against that backdrop, recent YoY traffic dips are likely a sign of stabilization rather than true declines. Social commerce, and minimalist skincare routines may be moderating in-store traffic, but shoppers are still engaged, even as they blend online and offline shopping or seek out lower-cost alternatives to maximize value.
Analysis of average visit duration for three leading beauty chains – Ulta Beauty, Bath & Body Works, and Sally Beauty Supply – highlights the shifting role but continued relevance of physical stores in the space.
Average visit duration decreased post-pandemic – likely due to more purposeful trips and increased online product discovery. But that trend began to reverse in H1 2025, signaling the changing role of physical stores. Enhanced tech for in-store product exploration and rich experiences may be helping drive deeper engagement, underscoring beauty retail’s staying power even in a more measured spending environment.
Bottom Line:
> Beauty’s slight YoY visit declines point to a period of normalization following a post-pandemic boom, while longer-term trends show the category remains stronger than pre-pandemic levels.
> Visits grew shorter post-pandemic, driven by more purposeful trips and increased online product discovery – but dwell time is now lengthening again, signaling renewed in-store engagement driven by tech-enabled discovery and immersive experiences.
Foot traffic data highlight major differences in the recent performance of various discretionary apparel categories. Off-price, fitness, and home furnishings are pulling ahead, well-positioned to keep capitalizing on shifting priorities. Luxury also remains resilient, likely thanks to its higher-income visitor base.
At the same time, beauty’s normalization and the slowdown in mid-tier apparel, electronics, and home improvement show that caution persists across discretionary budgets. Moving forward, retailers that align with consumers’ demand for value, accessible upgrades, and immersive experiences may be best placed to thrive in this era of selective spending.
