Retailers Saw More Foot Traffic Last Year. But What Does That Say About 2025? | Global News Avenue

Data from Placer.ai shows foot traffic at retailers will be slightly higher in 2024 than in 2023, with shoppers turning to grocery chains and supermarkets in the second half of the year.

Store traffic will increase 0.4% in 2024 compared with 2023, according to Placer.ai, which tracks foot traffic. During the year, traffic at discount and dollar stores increased, while traffic at specialty stores declined. But Placer.ai said that as consumer confidence recovered last year, the trend shifted toward stores frequented by higher-income shoppers and those looking for furniture and other discretionary items.

Overall, spending remains strong in 2024, although consumer confidence has been weak for much of the year, the National Retail Federation said. The recent rebound in sentiment has the group optimistic about 2025; at the same time, Placer.ai believes that cooling inflation may also support the development of retailers this year.

“We have every reason to expect healthy economic growth,” said Jack Kleinhenz, chief economist at the National Retail Federation. “The resilience of the American consumer will hopefully continue to be part of the dominant narrative.”

Concerns about high prices and economic uncertainty drive visits to retailers Known for valuesuch as Dollar General (Director General) and the following five (five), in the first quarter, Placer.ai said. The company said their traffic started lagging around April.

“Access trends in dollar and discount channels have slowed significantly,” said RJ Hottovy, director of analytics research at Placer.ai. “Consumers are increasingly turning to supermarkets and grocery chains, which are starting to offer more competitive prices in the second half of the year. , changing the perceived value proposition.”

By the third quarter, there was an increase in visits to grocery stores and large retailers, e.g. Walmart (WMT) and Target (TGT), which tend to serve higher-income households, according to Placer.ai.

Placer.ai said that furniture store traffic declined at the beginning of 2024, but by the fourth quarter, traffic increased by 3.5% year-over-year.