Value-Minded Consumers Key Drivers Of Retail Foot Traffic In 2024

Discount and dollar stores along with superstores accounted for the largest gains in shopper foot traffic in 2024, according to a new report from Placer.ai. 

Total store foot traffic for the year across all channels of distribution was up a modest 0.4%. Discount and dollar stores led the way with growth of 2.8%, with superstores seeing gains of 1.7%, and beauty & spa retailers seeing growth of 1.6%. Traffic at grocery stores was up 1%.

The growth in store traffic seen at discount and dollar stores was driven by shopper's continued thirst for products that provide a strong value as inflation remained a top issue for consumers. 

As consumers sought out high-value products, many retailers in the discount, dollar store, and superstore channels worked to expand their assortments of private label products. Walmart in 2024 made headlines with the debut of its bettergoods assortment and Target expanded its assortment with new products for existing own brands such as up&up and the debut of dealworthy.

With a focus on value and consumers limiting their discretionary spending, retailers such as furniture and home furnishings stores (-5.7%) and electronics stores (-3.5%) had the largest store traffic declines, the Placer.ai report said. 

Monthly, retail foot traffic was up in seven of 12 months in 2024. The largest growth was seen in March, when traffic grew 3.2%. Ironically, the prior year was book-ended with traffic declines as January was off 3.3% and December was down 0.9%.