.svg)
They say that one man’s trash is another one’s treasure – and for Burlington Stores, opportunity knocked when Bed Bath & Beyond selected Burlington Stores as the successful bidder for many of its leases, with the latter taking over 44 locations for $12 million. Per CNBC, many of these new venues are scattered across the country.
Using Placer data, we are able to compare visitation trends to these locations when they were branded as a Bed Bath & Beyond store versus when the new leases took over.
In Avondale, AZ, the new Burlington store is receiving over twice the traffic (241.8% more visits per square foot) during the holiday shopping season in December 2024 compared to a similar time frame when it was a Bed Bath & Beyond in December 2021.
In comparing shopping center frequented by visitors to the analyzed venue, the profile of the shopper has changed somewhat. While both sets of shoppers frequented the nearby Gateway Crossings, Westgate Entertainment District, and Arrowhead Towne Center, Burlington shoppers had a penchant for Desert Sky Mall and Tanger Outlets Phoenix, whereas the Bed Bath & Beyond shoppers preferred Palm Valley Pavillions West and Coldwater Plaza.
Whereas the top four segments have remained consistent for both banners, Burlington attracts a higher proportion of Melting Pot Families - over 2x the rate compared to when it was a Bed Bath & Beyond.
In a head to head comparison using comparable months, Burlington attracted over 3x the traffic in its first year of opening, compared to when it was a Bed Bath and Beyond two years prior.
The number of visits across numerous visit durations was considerably higher to Burlington, and the average dwell time increased to 41 minutes compared to 31 minutes when it was a Bed Bath & Beyond.
While this is just one example of a Burlington takeover, it goes to show that while the location may stay the same, the audience it attracts will vary and this Burlington is off to an excellent start.
In recent years, Tennessee has emerged as a surprising migration hotspot. The state, which offers a growing tech scene, business-friendly tax regulations, and a relatively low cost of living is rapidly gaining popularity and attracting inbound migration from across the nation.
Where are newcomers coming from – and where within Tennessee are they going? Using Placer.ai’s Migration Trends Report, we took a closer look at the migration data to gain a more thorough understanding of the shifts taking place in the Volunteer State.
The state of Tennessee has experienced significant positive migration over the past few years. Between July 2020 and July 2024, the cumulative net migrated percent of Tennessee’s population increased steadily, with 2.1% of the state’s July 2024 population having moved there from elsewhere in the country over the previous four years.
Diving deeper into Tennessee’s migration patterns reveal that between July 2020 and July 2024, the state had net positive domestic migration from 41 out of 50 states – meaning Tennessee gained more residents from these states than it lost to those states. Illinois and California together accounted for almost 40% of Tennessee’s net positive domestic migration during the period, and the state also drew a large contingent (33.6% of net positive domestic migration) from the East Coast.
While Memphis, Tennessee’s second-largest city, has made headlines in recent years for its declining population, other metro areas in the state are experiencing strong interest from newcomers.
Between July 2020 and July 2024, the Nashville CBSA (core-based statistical area) received the largest share of net positive domestic migration, with 24.6% of newcomers to Tennessee settling in the Music City. Nashville has been establishing itself as a tech hub, a factor which may have driven its strong net migration.
Knoxville came in second, welcoming 18.7% of the positive net migration to Tennessee between July 2020 and July 2024. Other CBSAs rounding out the top five were Chattanooga (9.0% share of positive net migration), Kingsport-Bristol (8.7%), and Johnson City (6.0%).
The influx of new residents into Tennessee is not only helping drive the state’s population up – it’s also reshaping its demographic composition. Zooming into the top five CBSAs mentioned above reveals that newcomers generally are coming from CBSAs of origin where the weighted median age is younger than the existing population.
The only metro area bucking this trend was Clarksville, where incoming residents were slightly older than the youthful median 31 years of its residents, though this may be a reflection of its strong university and military presence.
The movement of younger people into these up-and-coming CBSAs reflects the opportunities available for people to grow their careers and put down roots in a state that is quickly becoming a hub for growth and opportunity.
Tennessee seems to have reinvented itself as a destination for young people seeking out opportunities for growth. By continuing to foster a business-friendly environment and supporting its diverse communities, the state is well-positioned to thrive.
Visit Placer.ai to keep up with the latest data-driven migration trends.
How have McDonald’s and Chipotle, two of the most recognizable names in the quick-service and fast-casual dining scenes, fared over the last year? We take a closer look at each chain’s visit performance, and highlight some bright spots of 2024.
Visits to McDonald’s were mixed throughout 2024, with most months seeing minor visitation lags relative to 2023. Still, YoY traffic trends outpaced those of the overall QSR segment in all but one month (October 2024), highlighting the chain’s power relative to the rest of the market.
Some of the visitation dips at both McDonald's and the overall QSR segment are likely due to inflation impacting prices across the dining industry. And the rise of the budget-conscious consumer has prompted many chains to lean on limited-time offers and special releases to both offer affordable deals and turn a trip to a QSR into a special occasion. McDonald’s capitalized on this trend, driving impressive visit boosts following the June launch of its $5 Meal Deal. However, it was the chain’s special releases that delivered the most significant increases in weekly visits.
The introduction of the Chicken Big Mac on October 10th, 2024 proved to be a major success, driving a 7.2% increase in visits during the week of the launch (October 7th-13th) and an even larger 8.7% increase in the first full week following the release (October 14th-20th). The chain also enjoyed a jump in foot traffic from its limited-edition collector’s meal, launched on August 12th, 2024, further highlighting the effectiveness of these strategic, nostalgia-driven releases.
Chipotle has been a fast-casual darling for several years now, consistently driving YoY visit growth and expanding into new markets. And 2024 was no exception for the chain, with visits growing in all months analyzed. This included an impressive 21.1% year-over-year increase in April 2024, followed by sustained growth throughout the remainder of the year, culminating in an 8.8% increase in December 2024 compared to 2023. In contrast, the broader fast-casual category saw much more muted visitation patterns.
Some of Chipotle’s visit growth can be attributed to the aggressive growth strategy the company has undertaken, opening approximately 300 stores in 2024 with plans to add another 300 locations in 2025. A significant part of this expansion strategy focuses on rural and suburban markets in a bid to capture untapped demand beyond traditional urban hubs.
And diving into visits per location reveals that, overall, this strategy is working. All but eight states analyzed showed YoY visit per location growth in 2024 – and five of the top ten states for visits per location growth are among the least densely populated in the country. This suggests that Chipotle's decision to target smaller markets is paying off, enabling the brand to attract new audiences while reinforcing its stronghold in more densely populated areas.
Despite a challenging 2024, McDonald’s and Chipotle are surviving – and even thriving.
What might lie ahead for the two chains as 2025 gets underway?
Visit Placer.ai for the latest data-driven dining updates.
The Container Store has been a prime example of a specialty retailer that successfully catered to a highly specific and niche consumer need. The home organization trend gained traction in the early 2000s with the rise of custom closet solutions and continued to grow in popularity through influential figures like Marie Kondo and The Home Edit.
The home furnishings category experienced a surge during the pandemic as consumers focused on improving their living spaces, whether by purchasing new homes or renovating existing ones. However, as discretionary spending habits have normalized and interest rates have risen, consumer spending in this category has declined.
Additionally, the sector has seen significant consolidation, most notably with the closure of Bed Bath & Beyond, a major player in home furnishings and organization. The remaining retailers in the space now largely fall into two distinct categories: niche specialists and value-driven brands..
Those retailers that play in the more niche space – including The Container Store – have had an even more challenging path to meet changing consumer needs. Despite offering a high level of customization and expertise, the chain has struggled against increasing industry-wide promotional activity and waning interest in the home organization category. Additionally, mass merchants and other home retailers have expanded their offerings in this space, providing organization solutions at price points that better align with today’s cost-conscious consumers.
Placer’s foot traffic estimates indicate a clear rise in competition for The Container Store since 2022, aligning with a broader decline in demand for its category. In 2024, visitors to The Container Store cross-shopped at Target, HomeGoods, IKEA, and World Market at higher rates than in 2022. This growing preference for competitive alternatives – many of which emphasize greater value – has likely contributed to the retailer’s challenges.
Specialty retailers play a crucial role in the industry by offering expert knowledge, superior service, and a wider assortment of products. However, as we move into 2025, the retail landscape must continue evolving to meet shifting consumer expectations, making adaptation essential for specialty retailers.
%20_%20Texas%20Roadhouse.avif)
In 2024, many inflation-squeezed consumers looked to budget-dining options or simply ate more meals at home. How did full-service chains Chili’s and Texas Roadhouse drive foot traffic in such a challenging macroeconomic environment? We dove into the data to find out.
In 2024, value was a key ingredient in Chili’s and Texas Roadhouses’ recipes for success – although each chain used a different strategy to communicate its affordability to consumers.
Chili’s leaned into budget-friendly meal deals in 2024. The chain’s rebooted 3 For Me value menu drove significant traffic in Q2 2024 (9.7% visit growth YoY), and visits skyrocketed again in the fall, due in part to the viral Fried Mozzarella appetizer, part of a Triple Dipper deal, and the promotional $6 “Witches Brew” margarita – propelling the chain to 23.0% YoY visit growth in Q4 2024.
Texas Roadhouse, on the other hand, doesn’t run promotions – and instead relies on its already strong value perception to drive traffic when budgets are tight. But the chain’s consistent YoY visit growth (7.2% in 2024) was also likely due to its growing real estate footprint: over 30 new locations that are approximately 10% larger than previous builds, allowing for higher guest volumes.
Chili’s and Texas Roadhouse’s value perception appears to attract many consumers from lower-income households – but the chains drive traffic from diners with slightly more discretionary income as well.
Diving into the demographic characteristics of visitors revealed that in 2024, Chili’s and Texas Roadhouse received a smaller share of visits from the households earning over $100K/year compared to the nationwide distribution. (Texas Roadhouse served a slightly smaller share of these households, likely due to its smaller market strategy.) At the same time, both chains drove a larger share of traffic from households earning less than $50K/year and between $50K and $100K/year, compared to the nationwide distribution. This suggests that Chili's and Texas Roadhouse visitors are likely seeking value for money, but a significant share have more discretionary income to spend on higher-priced items – like top-shelf margaritas and steaks – than the average U.S. consumer.
As Chili’s and Texas Roadhouse continue investing in innovations and technological solutions to improve efficiency and customer experience, the chains are likely to continue attracting visitors looking to get the most bang for their dining bucks in 2025.
Chili’s and Texas Roadhouse may attract visitors from a similar demographic, but analysis of the markets in which the chains drive the most visits reveals several distinct regional preferences among dining consumers nationwide.
In 2024, Texas Roadhouse received a greater share of visits in a majority of Midwest and Mid-Atlantic CBSAs – consistent with a smaller market strategy – while Chili's drove a greater share of visits in denser markets and a majority of the CBSAs in California, Texas, and Florida.
But despite these regional differences, the chains received a near-even share of visits. Texas Roadhouse, with 675 U.S. locations, claimed 51.2% of visits to both chains, while Chili’s with over 1200 locations claimed 48.8% of the chains’ combined visits.
Chili’s and Texas Roadhouse have found success by providing value for money that sets them apart from other full-service chains. Yet, both chains drive an above-average share of high-income traffic, indicating that they are winning with value-conscious consumers with the means to indulge.
For more data-driven dining insights, visit Placer.ai.
College students often have to count their pennies – but they also know how to have a good time and are willing to pony up for things that matter to them. So with spring semester underway, we dove into the data to explore collegiate dining habits in the University City district of Philadelphia, PA – home to the University of Pennsylvania and Drexel University, as well as several smaller schools. How does the campus vibe impact visitation trends at local convenience stores and restaurants?
We dove into the data to find out.
Wawa – famous for low prices and round-the-clock service – is the perfect place to grab a sandwich to fuel an all-night study session or a cup of coffee on the go. And the University City Wawa at 3724-2744 Spruce Street is a local landmark, serving everyone from students and university employees to other area residents.
Analyzing visitation patterns at the Spruce Street Wawa shows that the store’s visitation patterns mirror the rhythms of campus life – with an uptick in late-night visits and fewer early-morning ones. Between September and December 2024, for example, some 8.7% of visits to the Spruce Street location took place between midnight and 3:00 AM – far exceeding the chainwide average of 3.8%. Meanwhile, visits during the early morning hours (6:00 AM to 9:00 AM) remained subdued – a trend consistent with the typical university lifestyle. And while the average Wawa’s traffic peaked during lunchtime, the Spruce Street location peaked between 3:00 PM and 6:00 PM – prime afternoon snack time.
Examining the Spruce Street Wawa’s captured market – i.e. the census block groups (CBGs) feeding visits to the store, weighted to reflect the share of visits from each CBG – shows that it is indeed college students driving the location’s late-night activity. Between September and December 2024, 63.3% of the Spruce Street Wawa’s captured market during the 12:00 AM - 3:00 AM daypart was made up of STI:Landscape’s “Collegian” segment – a group encompassing currently-enrolled college students living in dorms or off campus. By 3:00 AM, this share dropped to 12.2%, before bottoming out at 10.1% between 6:00 AM and 9:00 AM – unthinkably early for many undergrads. The share of “Collegians” then began to climb back upwards, reaching just over 50.0% in the evening.
Of course, Wawa isn’t the only local dining spot to benefit from student patronage. Local favorites – from the full-service White Dog Cafe in University City to the quick-serve Kiwi Yogurt on Chestnut St. – also attract plenty of undergrads.
But while Kiwi Yogurt stands out as a key weekday attraction for busy students, White Dog Cafe is more of a weekend destination. On Mondays through Fridays, the share of “Collegians” in Kiwi Yogurt’s captured market stood at 36.4%, dropping to 22.6% on weekends. Meanwhile, White Dog Cafe experienced an opposite trend, with the share of “Collegians” increasing on weekends (36.7%) and declining during the week (24.5%).
Whether it’s a late-night Wawa hoagie run or a weekend brunch at White Dog Cafe, even skint college students can find room in their budgets for convenient snacks and fun outings with friends – funneling steady foot traffic to local restaurants, cafes, and stores.
How will student dining trends continue to evolve in 2025?
Follow Placer.ai to find out.
1. Experiential and niche retailers can deliver anchor-level traffic. At Towne East Square Mall, the addition of a Scheels in 2023 significantly increased foot traffic and long-distance travelers, while Barnes & Noble at Coronado Center in Albuquerque has become a key driver of both foot traffic and higher-spend demographics.
2. Size isn’t everything – especially for dining venues. At Glendale Galleria and Northridge Fashion Center, smaller restaurants attracted more foot traffic than some traditional anchors.
3. Refocusing on tenants’ actual traffic contributions enables a flexible anchor approach. Balancing weekend draws like Scheels with weekday favorites such as Costco or Chick-fil-A can help maintain steady visitor flow throughout the week. Similarly, onsite fitness clubs can shift traffic to earlier in the day – an opportunity to adjust store hours and capture additional morning shoppers.
4. Temporary pop-ups can form an integral part of a visit-focused anchor strategy. The Barbie Dreamhouse Living Truck Tour generates mall visit spikes well above typical Saturday levels. Operators can integrate these events into their overall anchor strategies, offering preferential terms to high-performing pop-ups.
5. New tenants can boost traffic for existing stores in similar categories. After Aldi joined Green Acres Commons in February 2020, visits to an existing BJ’s Wholesale Club trended upwards. This synergy highlights how overlapping audiences can become a strength, creating a larger overall customer base.
Malls, it seems, are cool once again. After languishing in the wake of the pandemic, shopping centers across the country are thriving – reinventing themselves as prime “third places” where people can hang out, shop, and grab a bite to eat.
One key driver behind this resurgence is a shift in how malls view their anchor tenants. While traditional mainstays like Macy’s and JCPenney still play an important role, specialized offerings – from popular eateries to fitness centers and immersive retailtainment destinations – are increasingly taking center stage. These attractions maximize the experiential value that brick-and-mortar venues can deliver, driving visits and sales for the center as a whole.
Against this backdrop, this report leverages the latest location intelligence data to explore the types of tenants that can function as mall anchors in 2025. Should mall operators still focus on general merchandisers to draw crowds, or can dining chains and more niche retailers also do the job? How important is square footage in identifying the anchor-like tenants in a shopping center? And how can a visit-focused approach help mall operators select effective anchor or anchor-like tenants – whether to fill big-box spaces or to leverage the leasing perks traditionally reserved for major large-format chains?
One of the most important functions of a mall anchor is to ensure steady visitation – providing its smaller tenants with a constant flow of potential customers. And as the role of the mall continues to evolve, analyzing the actual foot traffic impacts of different types of businesses can help identify the kinds of non-traditional anchors best suited to fulfill that purpose.
Experiential venues, for example, are particularly well-poised to serve as powerful anchors in today’s retail environment – as illustrated by the visit surge experienced by Towne East Square Mall in Wichita, KS following the addition of a Scheels in July 2023.
By blending traditional retail with immersive experiences, Scheels has emerged as a true experiential destination. And this pull has also helped the mall draw more long-distance visitors willing to travel to enjoy Scheels’ offerings. In 2024, 41.9% of the mall’s customers traveled more than 50 miles to visit, compared to 35.8% back in 2018 when Sears occupied the same lot.
Traditionally, anchors aimed to please the widest possible audiences – with department stores, big-box chains, and grocery stores leading the way. But visitation data shows that niche concepts can also deliver anchor-level traffic if they’re compelling enough to attract dedicated fans.
The experience of the Barnes & Noble at Coronado Center in Albuquerque, NM is a case in point. After being written off as all but obsolete, Barnes & Noble has staged an impressive comeback in recent years, finding success through a more curated, localized approach to book selling. And despite not being a formal anchor, the Coronado Center Barnes & Noble accounted for 7.9% of visits to the mall in 2024 – outperforming both Macy’s and JCPenney.
Year-over-year data also shows foot traffic surging at the Coronado Center Barnes & Noble, lifting overall visitation to the mall. And demographic data reveals that the bookstore draws a more affluent audience than either the center as a whole or the two department stores – attracting a crowd with more spending power.
This example also illustrates how smaller tenants can sometimes draw larger crowds. Even though Barnes & Noble occupies a smaller onsite space than either Macy’s or JCPenney, it is proving a powerful visit driver out of proportion to its physical size.
Dining chains are also adept at punching above their square footage – often attracting crowds disproportionate to their size.
Despite its relatively small footprint, for example, the In-N-Out Burger at Glendale Galleria drew an impressive 8.6% of visits to the mall complex in 2024, outpacing some of the mall’s official anchors like DICK’s Sporting Goods, Macy’s, and JCPenney. Still, the onsite Target drew even larger crowds at 14.4% of visits.
A similar pattern emerged at Northridge Fashion Center, where Porto’s Bakery and Cafe captured a notable 15.6% of visits to the complex in 2024 – more than some of the center’s traditional department stores.
These examples underscore the potential for dining chains, which typically require less space, to serve as micro-anchors by consistently attracting outsized crowds – a key consideration for mall operators looking to sustain visitor traffic.
Refocusing on tenants’ actual foot traffic contributions also opens the door to a more flexible and dynamic approach to anchor selection and management – one that considers each venue’s unique visitation patterns.
Seasonal factors, for example, can make certain anchors more powerful at specific times of the year, while different venues shine on particular days of the week.
At Jordan Creek Town Center in West Des Moines, Iowa, for instance, Scheels and Costco each delivered just under 20.0% of the complex’s overall visits in 2024. But the two retailers’ daily patterns differed significantly: Scheels saw bigger crowds on weekends, while Costco was the primary weekday destination.
Understanding differences like these can help operators optimize their tenant mix to maintain a balanced flow of shoppers throughout the week.
Another example of the impact of differing weekday traffic patterns is offered by the impact of mall-based Chick-fil-A locations on the distribution of mall visits throughout the week.
Despite its relatively small size, Chick-fil-A draws substantial traffic to malls. And after adding Chick-fil-A locations, both Northridge and Miller Hill Malls saw meaningful drops in the share of visits to the centers taking place on Sundays – even as the wider indoor mall segment saw slight upticks.
Recognizing this trend could prompt mall operators to compensate by adding more weekend-friendly traffic drivers – or to lean into this distinction by taking additional steps to bolster the mall’s role as a go-to weekday destination.
The power of different mall traffic magnets also varies throughout the day. Increasingly, shopping centers are turning to fitness centers as experiential anchors. And since many people work out early in the morning, these gyms are having a significant impact on the distribution of mall visits across dayparts.
The addition of gyms to Northshore Mall in Peabody, MA and Jackson Crossing in Jackson, MI, for instance, led to a significant rise in visits between 7:00 AM and noon. And though the rest of the stores in these malls typically open at 10:00 or 11:00 AM, this shift presents the centers with a significant opportunity.
By adjusting opening hours to accommodate these early-morning patrons, malls can capitalize on this added traffic, driving up visits and sales for relevant tenants – especially health-focused retailers such as juice bars and sporting goods stores.
Adopting a broader, visit-focused view of anchoring also allows mall operators to apply some of the strategies typically reserved for anchors to non-conventional traffic-generating businesses, to ensure a consistent flow of traffic year-round.
Pop-up stores and events, for example, generally don’t follow the same seasonal trends as other retailers – instead, they generate short-term visit boosts during their runs, whenever in the year that may be. And a visit-focused anchor strategy can leverage some of the perks traditionally reserved for anchor tenants – such as preferential leasing terms – to complement traditional full-time anchors during slower retail periods.
The Barbie Dreamhouse Living Truck Tour is a prime example of a traffic-driving pop-up. By bringing exclusive merchandise to malls across the U.S., the truck generates plenty of buzz, drawing crowds eager to snatch up limited-edition items and immerse themselves in all things Barbie. As a result, malls hosting the tour often see significant visit spikes, with foot traffic surging well above typical Saturday levels. Well-timed pop-ups like these can help balance out traffic throughout the year, offsetting traditional slow periods.
A visit-focused approach to anchor management can also help mall operators assess the potential impact of new tenants on existing stores operating in similar categories. For example, mall owners often worry that new tenants operating in similar categories might cannibalize existing businesses. But a visit-focused anchor approach reveals that a well-chosen addition can sometimes benefit current tenants – especially if they cater to similar audiences.
In February 2020, for instance, value supermarket Aldi opened at Green Acres Commons in Valley Stream, NY – a center that already hosted budget-friendly BJ’s Wholesale Club. While BJ’s visits were relatively flat in 2018 and 2019, they began to rise after Aldi’s opening (and following a pandemic-induced dip). Cross-shopping data also shows that Aldi customers were more likely to visit BJ’s than the average Green Acres patron last year.
This synergy may be due in part to the two retailers’ similar visitor bases: In 2024, the Aldi and BJ’s stores in Green Acres Common drew shoppers with comparable economic profiles. This suggests that overlapping audiences can become a strength if aligned brands attract new shoppers, who then explore multiple stores in the same center.
Looking ahead, effective mall anchors will be defined less by physical footprint and more by their capacity to maintain consistent, valuable foot traffic. While traditional department stores remain pivotal, smaller or niche brands can often rival – or surpass – large-format retailers. And by thinking out of the anchor box and choosing tenants that cultivate a balanced visitor flow and align with local preferences, operators can position their centers as true go-to destinations.
1. Shoppers are taking more, shorter trips to grocery stores. Over the past 12 months, grocery stores have experienced nearly uniform YoY visit growth. And since COVID, the segment has steadily increased both overall visits and average visits per location – even as average dwell times have consistently declined.
2. Grocery stores are holding ground against fierce competition. Despite growing inroads by discount and dollar stores, wholesale clubs, and general mass retailers like Walmart and Target, grocery stores have maintained their share of the overall food-at-home visit pie over the past several years.
3. Grocery visit share is most pronounced on the coasts. In Q1 2025, grocery stores claimed the majority of food-at-home visits on the West Coast, in parts of the Northeast, Mid-Atlantic, and Mountain Regions, and in Florida and Michigan.
4. Fresh-format, value, and ethnic grocery visit shares are growing at the expense of traditional chains. And in Q1 2025, fresh-format and value grocers outperformed the other sub-segments with positive YoY visit and average visit-per-location growth.
5. Hispanic markets are on the rise. Though the broader ethnic grocery sub-segment was essentially flat YoY in Q1 2025, Hispanic-focused stores recorded increases in both visits and visits per location – and have been steadily growing visits since 2021.
6. Smaller formats for the win. In Q1 2025, smaller-format grocery store locations outpaced mid-sized and larger-format ones, underscoring the power of compact spaces to deliver significant foot traffic gains.
Brick-and-mortar grocery stores face an uncertain market in 2025. Rising food-at-home prices (eggs, anyone?), declining consumer confidence, and increased competition from discounters, superstores, and online shopping channels all present the segment with significant headwinds. Yet even in the face of these challenges, the sector has demonstrated remarkable resilience – growing its foot traffic and holding onto visit share.
What strategies have helped the segment navigate today’s tough market? And how can industry stakeholders make the most of the opportunities in the current market? This report draws on the latest location intelligence to uncover the trends shaping grocery retail in early 2025 – highlighting insights to help key players make informed, data-driven decisions on store formats, product offerings, and more.
The grocery segment has experienced nearly uniform positive year-over-year (YoY) growth over the last 12 months. This sustained performance in the face of inflation and other headwinds highlights the underlying strength of the category.
What is driving this growth? Since 2022, the grocery segment has seen consistent overall visit growth that has outpaced increases in visits per location – a sign that chain expansion has played a key role in the category’s success. But the average number of visits to each grocery store has also been on the rise, indicating that the segment continues to expand without cannibalizing existing store traffic.
At the same time, visitor dwell times have been steadily dropping since 2021. This shift appears to reflect a trend towards multiple, shorter trips by inflation-wary consumers eager to avoid large, costly carts or cherry pick deals across various retailers. Many shoppers may also be placing more bulk orders online and supplementing those deliveries with brief in-store stops for additional items as needed.
The bottom line: Shoppers are taking more grocery trips overall each year, but spending less time in-store during each visit. Operators can respond to this trend by optimizing layouts and promoting “grab-and-go” areas for an even more efficient quick-trip experience.
Visit share data also shows that despite fierce competition from discount and dollar stores, wholesalers, and general mass retailers, the grocery segment has steadfastly preserved its share of the overall food-at-home visit pie.
Between Q1 2019 and Q1 2025, wholesale clubs and discount and dollar stores increased their share of total food-at-home visits, gains that have come primarily at the expense of Walmart and Target. Meanwhile, grocery outlets have held firm – despite some fluctuations over the years, their Q1 2019 visit share remained essentially unchanged in Q1 2025.
So even as consumers flock to alternative food purveyors in search of lower prices, grocery stores aren’t losing ground – and on a nationwide level, they remain the biggest player by far in the food-at-home shopping space.
Still, grocery store visit share varies significantly by region. On the West Coast, in parts of the Northeast, Mid-Atlantic, and Mountain regions, and in Florida and Michigan, grocery stores accounted for the majority of food-at-home visits in Q1 2025. Oregon (61.6%) and Washington (59.6%) led the pack, followed by Massachusetts (59.2%), Vermont (58.5%), and California (57.9%). Meanwhile, in West Virginia, Arkansas, South Dakota, Oklahoma, North Dakota, and Mississippi, less than 30% of food-at-home traffic went to grocery stores, with more shoppers in these regions turning to general mass retailers or discounters.
Grocery store operators in lower-grocery-share regions may choose to focus on price competitiveness and convenient store locations to capture more foot traffic from competitors in the space.
Which types of grocery stores are thriving the most? The grocery segment is diverse, encompassing traditional grocery chains like Kroger, Safeway, and H-E-B; budget-oriented value chains such as Aldi, WinCo Foods, Grocery Outlet Bargain Market, and Market Basket; fresh-format specialty brands like Trader Joe’s, Whole Foods, and Sprouts Farmers Market; and numerous ethnic grocers.
Examining shifts in visit share among these various grocery store segments shows that traditional grocery still dominates, commanding over 70.0% of total grocery store foot traffic.
Still, over the past several years, traditional grocers have gradually ceded ground to other segments – especially value chains. Budget grocers saw a temporary surge in visits during the panic-buying days of early 2020 – and have been more gradually gaining visit share since Q1 2023. . Fresh-format banners, which lost ground in 2021 after a Q1 2020 bump, in the wake of COVID, have also been on the upswing and appear poised to capture additional visit share in the coming months and years. And though ethnic grocers still account for a relatively small portion of the overall market, they have slightly increased their visit share, reflecting heightened consumer interest in these specialized offerings.
Recent performance metrics point to a bifurcation in the grocery market similar to that observed in other retail categories. In Q1 2025, fresh-format and value retailers – which appeal, respectively, to the most and least affluent visitor bases – saw the greatest growth in both overall visits and average visits per location.
This trend highlights the power of both value and health-focused quality to motivate consumers in 2025. And grocery players that can meet these needs will be well-positioned for success in the months ahead.
One factor fueling fresh-format’s success may be its role as a convenient, relatively affordable midday lunch destination for the remote work crowd.
In Q1 2025, consumers working from home accounted for 20.2% of fresh-format grocery stores’ captured market – a significantly higher share than any other analyzed grocery segment. These stores also tended to be busier midday than the other segments. Remote workers may be stopping by to grab a quick bite – and some may be choosing to do their grocery shopping during their lunch break when stores are less crowded.
This finding suggests an opportunity for grocery operators across all segments to develop or enhance in-store salad bars and quick-serve sections to tap into the lunch rush. Likewise, CPG companies may benefit from developing more ready-made, nutritious meal options that align with these midday dining habits.
Though the broader ethnic grocery category remained essentially flat in Q1 2025, Hispanic-focused grocers emerged as a sub-segment to watch. Both overall visits and average visits per location to these stores have been on the rise since 2021.
This robust demand presents an opportunity for CPG brands and grocers across segments to expand Hispanic-focused offerings, capturing a slice of this growing market.
Finally, store size matters more than ever in 2025. During the first quarter of the year, smaller format grocery store locations (locations under 30K square feet, across different chains) outpaced larger stores with a 3.2% YoY jump in visits, showing that bigger isn’t always better in the grocery store space.
This pattern aligns with the decrease in dwell times noted above – shoppers may be making shorter trips to smaller, more convenient grocery store locations. These quick errands are ideal for picking up a few items to supplement online orders, shopping multiple deals, or sourcing specialty products unavailable at larger grocery destinations. And to lean into this trend, grocery operators might consider testing neighborhood “micro-store” concepts, focusing on curated selections, and offering convenient parking or pickup to match consumer preferences for targeted purchases and quicker trips.
Location intelligence reveals a growing, dynamic grocery landscape which is holding its ground in the face of increased competition. Shorter trips, busier lifestyles, and changing work routines are reshaping in-store experiences. And grocery players that refine their store formats, target both lunch and on-the-go shoppers, and adapt to shifting demographics can position themselves to thrive in this competitive sector. As the market continues to evolve, continuous attention to these changing patterns will be key to maintaining and expanding market share.
1. Elevated visitor frequency could mean that gym-goers are getting more value out of their memberships and are therefore more likely to stay signed up. Between January and March 2025, all of the gym chains analyzed had a higher share of frequent visitors (those who visited about once a week) than in the equivalent month of 2024.
2. Fitness chains at all price tiers need to be strategic about the value they offer and the amenities that can engage budget-conscious consumers. Between Q1 2022 and Q1 2025, the captured trade area median HHI increased for all fitness subsegments – value-priced, mid-range, and high-end – suggesting that consumers swapped pricier gym memberships for more affordable options.
3. Close attention should be paid to how long visitors spend at fitness chains in order to reduce crowding and bottlenecks. Between Q1 2022 and Q1 2025, the average visit length increased at value-priced, mid-range, and high-end gyms. Floorplan and equipment improvements could be considered, as well as having trainers available to help gym-goers streamline workouts.
4. Gyms can use hourly visit data to better serve their members or use promotions to stabilize facility usage throughout the day. In Q1 2025, high-end chains received a larger share of morning visits while value-priced and mid-range fitness chains received larger shares of evening visits.
Like many industries in recent years, the fitness sector has experienced significant shifts in consumer behavior. From the rise in home workouts during the pandemic to the strain of hyper-inflation, foot traffic trends to gyms and health clubs have been as dynamic as the consumers they serve.
This report leverages location analytics to explore the consumer trends driving visitation in the fitness space and provides actionable insights for industry stakeholders.
The pandemic drove several shifts in the fitness space. Widespread gym closures led consumers to embrace home-based workouts, while demand for all things fitness increased due to an emphasis on overall health and wellness. This subsequently drove a renewed interest in gym-based workouts as restrictions lifted – even as some consumers remained committed to their home workout routines.
In Q1 2023, visits to fitness chains surpassed Q1 2019 levels for the first time since the onset of the pandemic, a sign that consumers had recommitted to out-of-home fitness. And in Q1 2024 and Q1 2025, fitness chains saw further growth, climbing to 12.8% and 15.5% above the Q1 2019 baseline, respectively.
Several factors have likely driven consumers’ return to gyms and health clubs, including the desire for both social connection and professional-grade facilities difficult to replicate at home. The steep increase in cost of living has likely also played a role, since consumers cutting back on discretionary spending can enjoy multiple outings and a range of recreational activities at the gym for one monthly fee.
Zooming in on weekly visits to the fitness space in Q1 2025 reveals the industry’s exceptional strength and resilience in the early part of the year.
The fitness industry experienced YoY visit growth nearly every week of Q1 2025 (and 2.4% YoY visit growth overall) with only minor visit gaps the weeks of January 20th, 2025 and February 17th, 2025 – likely due to extreme weather that prevented many Americans from hitting the gym.
And the fitness industry’s weekly visit growth appeared to strengthen throughout the quarter, defying the typical waning of New Year's resolutions. This could indicate that gym visits haven't plateaued and that consumers are demonstrating greater commitment to their fitness routines compared to last year.
Diving into visitation patterns for leading fitness chains highlights how increased visitor frequency drove foot traffic growth in Q1 2025.
Fitness chains tend to receive the most visits during the first months of the year as consumers recommit to health and wellness in their post-holidays New Year’s resolutions. And not only do more people hit the gym – analyzing the data reveals that gym-goers also typically work out more frequently during this period. Zooming in on 2025 so far suggests that consumers are especially committed to their fitness routines this year: Leading gyms saw an increase in the proportion of frequent visitors (4+ times a month) in Q1 2025 compared to the already significant percentage of frequent visitors in the first quarter of 2024.
Elevated visitor frequency could mean that gym-goers are getting more value out of their memberships than last year, and are therefore more likely to stay signed up throughout the year.
At the same time, the data also reveals that – contrary to what may be expected – a fitness chain’s share of frequent visitors appears to be independent of the cost of membership associated with the club: Life Time, a high-end club, and EōS Fitness, a value-priced gym, had the highest shares of frequent visitors between January 2024 and March 2025. This suggests that factors other than cost, such as location convenience, class offerings, community, or individual motivation, might be more influential in driving frequent gym attendance.
Segmenting the fitness industry by membership price tiers – value-priced, mid-range, and high-end – can reveal further insights on current consumer behavior around out-of-home fitness.
In Q1 2025, the captured market* median household income (HHI) was higher than the nationwide median HHI ($79.6K/year) across all price tiers – suggesting that even value-priced fitness chains are attracting a relatively affluent audience. This could indicate that gym memberships are somewhat of a luxury and that consumers from lower-income households gave up their gym memberships altogether as they tightened their purse strings.
Analyzing the historical data since Q1 2022 also reveals that the captured market median HHI has risen consistently over the past couple of years with the largest median HHI increase observed in the captured trade areas of high-end fitness chains. This suggests that middle-income households – that are more sensitive to the rising cost of living – likely swapped pricier gym memberships for more affordable options in recent years.
These metrics indicate that fitness chains at all price tiers need to think strategically about the value they offer and the amenities that can engage budget-conscious consumers who are carefully weighing every expenditure.
*Captured trade area is obtained by weighting the census block groups (CBGs) from which the chain draws its visitors according to their share of visits to the chain and thus reflects the population that visits the chain in practice.
Fitness clubs of all types need to manage their capacity to ensure health and safety standards and a positive experience for members. And understanding the average amount of time visitors spend at the gym can help fitness chains at every price point keep their finger on the pulse of their facilities.
Between Q1 2022 and Q1 2025, the average visit length increased at value-priced, mid-range, and high-end gyms. Value-priced gyms experienced the largest increase in average visit length – from 72.4 minutes in Q1 2022 to 74.0 minutes in Q1 2025 – perhaps due to their relatively lower-income visitors spending more time enjoying club amenities after cutting back on other forms of recreation. Meanwhile, mid-range and high-end gyms experienced relatively modest increases in average visit length, which were higher to begin with – likely due to their ample class and spa offerings and overall inviting, upscale spaces.
Elevated average visit length could mean that visitors are well-engaged and less likely to cancel their memberships. But as overall gym visits are on the rise, fitness chains may want to pay close attention to how long visitors spend at the facility. Floorplan and equipment improvements could be considered in order to reduce bottlenecks, and having trainers available to instruct on equipment usage and workout technique could help gym-goers streamline workouts.
Along with average visit length, understanding the daypart in which they receive the most visits is another way that fitness chains can improve efficiency and prevent overcrowding. And analysis of the hourly visits to fitness sub-segments revealed that some fitness segments receive more morning visits while others are more popular in the evenings.
In Q1 2025, high-end chains received a larger share of visits between 6 a.m. and 9 a.m. (19.7%) than value-priced and mid-range fitness chains (11.6% and 11.8%, respectively). Meanwhile, value-priced and mid-range fitness chains received larger shares of visits between 6 p.m. and 9 p.m. (21.9% and 22.2%) than high-end chains (16.5%).
Gyms can leverage this data to better serve members, for instance by scheduling more classes during peak hours. Value-priced and mid-range gyms, which saw a larger disparity between shares of morning and evening visits in Q1 2025, might also consider incentivizing off-peak usage through discounted morning memberships or early-bird snack bar deals.
The fitness space appears to be in good shape in 2025. Visits have made a full recovery from the pandemic era and still continue to grow, indicating strong consumer demand for out-of-home workouts. And using location intelligence to analyze the behavior and demographics of visitors to gyms at different price points can help identify opportunities for driving even greater success.
