Consumer spending habits changed in response to inflation, resulting in a decrease of retail traffic during Q1 2023. According to Placer.ai’s Quarterly Index, visits fell by 4.2% year over year with Grocery and Superstores experiencing dips while Discount and Dollar Stores exceeded 2022 levels; the Fitness category topped all others with an 18.7% increase year-over-year.
Placer.ai’s Senior Vice President of Marketing Ethan Chernofsky noted that the visit declines for Grocery weren’t as dire as they may appear at first glance: “They speak more to the unique context of 2022 and behavior shifts than any change in demand.” The rise for discount dollar stores can be attributed less to a decline in demand for superstores than it does an increase among discount players – testament to their massive presence, wide range of products consumers rely on them for, plus expansions into newer segments which have maintained their centrality,” said Chernofsky
Chernofsky also pointed out that metrics don’t suggest more shopping activity is moving online any more than it did before: “The key term here is activity,” he explained; both online and offline channels should be viewed holistically as part of a multi-channel customer journey where sometimes consumers browse instore then make final purchases online or vice versa – viewing these channels not as competing elements but rather parts of one effort regardless if brick & mortar has advantage (like grocery) or not .
