Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

The Impact of Inflation and High Gas Prices on Retail Foot Traffic - May 2022 Update

by 
Shira Petrack
 on 
May 19, 2022
The Impact of Inflation and High Gas Prices on Retail Foot Traffic - May 2022 Update

We last looked at the impact of inflation and increased gas costs on retail foot traffic in late March 2022. With another month of data in, we dove into the numbers to find out if retail visits have recovered from the shock of rising prices and what categories are proving particularly resilient. 

Retail Visits Bounce Back from High Gas Prices 

Gas prices increased gradually in January and February 2022, but the beginning of March saw a dramatic spike relative to an end of 2020 baseline. But although gas prices first jumped the week of March 1st, it was only the following week (March 7 to 13, 2022) that major news outlets such as CNBC, The Washington Post, and CNN began warning consumers that they would likely pay more at the pump for the foreseeable future. 

Seemingly impacted by the increase in focus and prices, nationwide retail visits for the week of March 7th took a dive, with weekly visits falling by 5.7% relative to 2019 – the biggest year-over-three-year (Yo3Y) weekly gap seen since the start of 2022. 

Although gas prices have remained high since, retail foot traffic seems to have mostly recovered. Visits in early May were almost back to pre-pandemic levels, with foot traffic the week of May 2nd down only 1.2% relative to the equivalent week in 2019. This indicates that while rising costs did provide an initial shock, behavior is normalizing. As consumers became accustomed to paying more at the pump and were no longer constantly reminded of the increase in gas prices, they returned to their pre-gas hike habits.  

Dollar Store Foot Traffic Booming, Grocery Visits Recovering 

Unlike gas prices that only began spiking in March 2022, inflation has been on the rise for a more extended period. And grocery stores, which were relatively COVID-resistant in 2021, proved more vulnerable to inflation in 2022. So while grocery stores outperformed superstores last year, the trend reversed in 2022 with grocery foot traffic lagging behind superstores. Between mid-February and the end of April, superstore foot traffic has stayed relatively close to where it was in the first week of the year, while grocery visits have fallen significantly. 

Some of the success of the superstore category (including Walmart, Target, and Costco) could be due to the sector’s diverse offerings under one roof. Consumers trying to reduce their driving time may be buying groceries at superstores as a way to consolidate their shopping trips. 

More recently, however, the grocery category has also seen an uptick, with visits the week of May 2nd to 8th 2022 up by 0.5% relative to the first week of the year and up 2.1% relative to the equivalent week in 2019 – another indication that consumers are getting over the shock of high prices and returning to their pre-decline habits. 

Meanwhile, dollar and discount stores, including Dollar General and Five Below, are seeing some major foot traffic gains, with weekly visits up all year relative to the equivalent week in 2019. Of course, dollar and discount stores were already strongly positioned, with visits relative to pre-pandemic up for much of 2021. But what’s truly impressive is that visits have been rising significantly even relative to the already strong January 3-9 2022 baseline – and the visit increase since the beginning of the year is much greater than for superstores. 

So, while inflation is also beginning to impact dollar store prices, foot traffic data indicates that dollar store prices are likely still low enough to attract shoppers looking to stretch their paycheck. 

QSR & Fast Food Leading Dining Foot Traffic  

So far, we looked at overall retail trends and dove into various retail categories where consumers can purchase essential goods. But location analytics tools can also shed light on inflation’s impact on discretionary spending. We analyzed three dining categories – full service restaurants, QSR and fast food, and coffee shops, sweet shops and bakeries – to understand how rising prices are impacting nationwide dining visits. 

As the chart below shows, visits to all three dining categories are increasing relative to a January 3rd to 9th 2022 baseline, and even full service restaurants have been seeing rising visit levels after suffering a heavy blow over COVID. So while many restaurants may still have a way to go before reaching pre-pandemic occupancy, visits are moving in the right direction. And, Yo3Y foot traffic data shows that the coffee and bakery category has also almost returned to pre-pandemic levels after seeing gas and inflation-related visit declines in March and early April. 

But the current dining visit leader is QSR and fast food. Aside from a Yo3Y 9.9% drop in visits the week of March 7th to 13 2022 – in line with the drop in overall retail visits that same week – QSR visits have stayed relatively close to pre-pandemic levels, with visits the week of May 2nd to 8th up 0.5% relative to the equivalent week in 2019. Perhaps consumers feel justified buying prepared fast food now that grocery prices are on the rise anyways; or maybe spending money on QSR is a cost-effective way to indulge in today’s economic climate. Whatever the reason – fast food’s consistently strong visit performance over the past weeks shows that, despite inflation and high gas costs, the category is definitively out of its COVID slump

For more data-driven retail insights, visit placer.ai.

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 Placer.ai Free
Oops! Something went wrong while submitting the form.
Placer.ai Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap
Placer.ai Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
Announcing Placer.ai’s COVID RECOVERY DASHBOARD
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight
Three Ways Retailers Can Think Small to Increase Store Impact
Offline Beauty Is on an Upswing
The Evolving Migration Patterns of New York’s Florida Snowbirds
Placer.ai Office Index: November 2022 Recap
How Viral Social Media Trends Can Drive Offline Engagement
Are You Ready for Some Football? Experiential Marketing Shows Promise
Mall and Shopping Center Trends For 2023
Retail Corridors and Indoor Malls: A Holiday Head-to-Head
Placer Bytes: Nike, lululemon, and GameStop Update
Placer.ai Mall Indexes: November 2022 Update
Black Friday 2022: Consumers Hear the Call
Digitally Native Brands: Taking Off, Offline
Discount and Dollar Stores Leading the Pack
Turkey Wednesday 2022
Retail’s Evolving Holiday Season
Placer Bytes: Starbucks and Department Stores Ahead of Black Friday
Ulta: A Force to be Reckoned With
College Towns Drive Dining Growth
Foot Traffic Trends Reveal Consumers Ready for Holiday Cheer
How Retailers Can Win Big By Going Small
How Are Consumers Feeling Ahead of Black Friday 2022?
Off-Price, Hibbett, and Dick’s Pre-Holiday Check-in
Ho, Ho, Wholesale: Costco, Sam’s Club, and BJ’s
October 2022’s Retail Rebound
Target and Walmart Ahead of the Holidays
Home Improvement: Leave it to the Pros
Despite Inflation, Holiday Season is Off to a Good Start
Placer.ai Office Index: October 2022 Recap
Placer.ai Mall Indexes- October 2022 Update
Americans Double Down on Fitness
The State of Grocery
CVS and Walgreens: The Wave Continues
Coffee Chains Brewing Up Visits
Placer.ai Spotlight: Pizza Players
What Drove COVID-Era Urban Migration Trends?
Kroger and Albertsons: A Merging of Strengths
Texas Roadhouse Innovations Dishing Up Success
Holidays on the Horizon: Mid-Range and Luxury Shopping
McDonald's and Chipotle's Post-Pandemic Success
Announcing Placer.ai’s Q3 2022 Quarterly Index
5 Hot Restaurant Brands for 2023
Target Finds a Winning Deals Day Formula
Five Trends to Watch for 2022’s Holiday Shopping Season
September 2022 Analysis: A Difficult Month and Time for Optimism
Inflation’s Retail Winners
Five Apparel Retailers to Watch Ahead of the Holidays
Placer.ai Spotlight: Wawa’s QSR Pivot
Placer.ai Mall Indexes: September 2022 Recap
Placer.ai Office Indexes: September 2022 Recap
The Impact of Population Growth on Commercial Real Estate 
Starbucks' New Makeover
There's Somethin' About Pumpkin
Expanding Offline Reach
Breakfast Restaurants are Rising in Popularity
The Power of Labor Day 2022
Tourism in Miami Heating Up
Citi Trends on the Rise
Reaching Rural Consumers Through Retail Media Network
Darden Restaurants Cooking Up Success
The Home Improvement Sector: A Sign of Consumer Confidence
QSR Is Having a Northeastern Growth Spurt
Domestic Migration’s Ripple Effects
A Look Back at Back To School 2022
Kroger Digital Tell-All
The Return of In-Person Networking
The Reinvention of the American Mall  
Placer.ai Office Building Indexes: August 2022 Recap