Retailers on both ends of the household income spectrum saw increased traffic this summer, according foot traffic research from Placer.Ai.
Placer.ai looked at foot traffic data for Walmart, Target, Costco, BJ’s, and Sam’s Club and found most superstores had lower foot traffic.
“But the visit gaps narrowed in June and July, indicating that the worst of inflation-related consumer challenges may finally be over,” the report said.
Costco BB #:150902, which has the highest median income, not only outperformed other stores, but also showed strong gains in foot traffic, even compared to 2019.
“The wholesale club’s relative strength indicates that although the wider economic outlook is improving, ongoing economic headwinds are still weighing on consumer spending, and brands that cater to a more affluent clientele are less likely to be impacted,” the report said.
On the other end of the spectrum, Walmart outperformed Target, BJ’s and Sam’s Club on year over year visits in June and July, which Placer.Ai suggests is due to higher income shoppers trading down, a sentiment echoed by Walmart CEO Doug McMillon on multiple occasions.
The report also found Walmart’s foot traffic in the Northeast is far ahead of other regions in the U.S.
“Walmart’s visit increases in the northeast suggest that, even as the retailer closes stores in some parts of the country, the company still has room for growth in other regions – and that superstores will remain an indispensable part of the wider retail landscape in 2024 and beyond,” the report said.
