Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

How is Inflation Impacting the High-Income Shoppers?

Shira Petrack
June 30, 2023
How is Inflation Impacting the High-Income Shoppers?

In today’s rapidly changing retail landscape, staying up-to-date with in-store shopping habits is critical. Companies that know which consumer segments are shopping at which chains, when and how often shoppers visit stores, and how these patterns are evolving can stay ahead and thrive despite a challenging economic climate. 

Our latest white paper leverages location analytics to analyze changes in consumer behaviors and demographics across multiple industries and offers insights that can help retailers and CPG companies better cater to today’s brick-and-mortar visitors. Below is a taste of our findings. For the full report, click here

Higher-Income Households are Going to Mid-Range Stores

Inflation and wider economic concerns have dominated headlines from mid-2022 into 2023. The increase in prices shifted consumer spending and behaviors, with some shoppers choosing to trade down from their usual brands and switch to lower-cost alternatives. Comparing the demographic or psychographic attributes of the population in a given chain’s potential and captured market can reveal which audience segments are favoring which types of retailers. 

A chain's potential market consists of the areas where visitors to the chain’s venues come from, weighted according to the population size of each census block group of the trade areas. The chain’s captured market consists of the areas where visitors to the chain’s venues come from, but weighted according to the actual visit share to the POI from each census block. In other words, a chain’s potential market includes the population that lives in the chain’s trade areas, while the captured market reveals the demographic and psychographic characteristics of the audiences that visit the chain in practice. Digging into the captured and potential market for two major chains, Target and Ulta, reveals which audience segments are particularly drawn to these brands. 

Target: Reaching Beyond Its Potential Market 

Target has been a retail darling over the past few years, displaying a marked resilience in the face of economic headwinds, and an analysis of its trade area suggests the company’s stores are still attracting a coveted visitor segment. 

Comparing Target’s potential market to its captured market reveals that the company is attracting a larger-than-expected rate of higher-income households – perhaps due to the higher-income consumers migrating to suburban areas over the past couple years. Data from STI: Popstats indicates that, while 17.8% of Target's potential market includes households earning over $150,000 a year, that number rises to 19.6% within its captured market. The higher income among Target’s captured market visits highlight Target's ability to attract financially comfortable consumers – which may be giving the company a leg up during the current inflation-induced retail downturn. 

The data also sheds light on the shopping preferences of financially stable individuals, suggesting that they recognize the value offered by mid-range retailers like Target. Retailers, CPG managers, and even dining industry stakeholders can use this information to tailor their product offerings and market their budget-friendly options to a higher-income customer segment.

The Ulta-mate Beauty Destination

Ulta has established itself as a beauty powerhouse, and the brand’s positive foot traffic trends consistently defy the odds in a challenging economic environment. The company has long been a leader in selecting products that resonate with its wide customer base, opting to house mass and prestige brands under one roof. Similarly to Target, Ulta appears to be successfully catering to all income brackets – and the brand seems particularly strong among high-income shoppers. 

The share of households with a median annual HHI of $150K is larger in Ulta’s captured market than its potential market visits. But these results vary across states. New Jersey Ulta stores seem to have a significantly larger share of high-income households in their captured market relative to their potential market, which may also be attributed to high-income new residents in the Garden State’s suburbs. Meanwhile, the captured and potential trade areas of Illinois and California Ulta stores seem to show less variance. Understanding where affluent consumers are shopping in more affordable stores can help brands gear their product selections and marketing strategies accordingly to reach this desired cohort.

In a period marked by economic uncertainty, understanding which audience segments remain willing to spend – and which are looking to cut back – can be crucial for consumer-facing companies. Target and Ulta trade area data indicates that it is possible to appeal to affluent shoppers while catering to a wide range of customers and remain relevant in a changing marketplace.

For more insights into 2023 brick-and-mortar consumer behavior, read the white paper here

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Text Link
Text Link
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024:’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023 Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023 Office Index: September 2023 Recap
Placer Mall Index Recap: September 2023
September White Paper Recap
The Consumer Habits of College Students
JCPenney: Rightsizing and Revitalizing
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023 Office Index: August 2023 Recap