Consumer spending habits changed in response to inflation, leading to a decrease in 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 topping all others with an 18.7% increase in visits YOY.
Placer.ai’s Senior Vice President of Marketing Ethan Chernofsky commented that the visit declines for Grocery weren’t as dire as they may seem: “They speak more to the unique context of 2022 and behavior shifts than any change in demand,” he said . The rise for discount dollar stores likely speaks less about superstores’ decline than it does about these players’ growth; superstores still maintain a massive presence despite higher foot traffic at their competitors’. This is an important testament “to their role, wide nature of products consumers rely on them for, and expansions into newer segments that have maintained their centrality,” Chernofsky added .
Metrics don’t suggest shopping activity is moving online any more than it did before; rather both channels should be viewed holistically as part of a multi-channel customer journey according Chernofsky: “Sometimes [the consumer] will browse instore then make final purchase online or vice versa – its important view these channels together instead competing elements.” He concluded this holds true regardless if brick-and-mortar has clear advantage like grocery or not
