Key Takeaways
- Retail foot traffic increased about 0.4% in 2024 when compared to 2023, Placer.ai said.
- Discount and dollar stores saw strong momentum early in the year, the group said. Trends shifted in favor of big-box and specialty retailers by the end of 2024, Placer.ai said.
- A rebound in sentiment later in 2024 has the National Retail Federation optimistic about the year ahead.
Retailers saw slightly more foot traffic in 2024 than 2023, according to Placer.ai, with shoppers turning toward grocery chains and superstores in the second half of the year.
Stores had 0.4% more visits in 2024 than in 2023, according to Placer.ai, which tracks foot traffic. Over the course of the year, traffic favored discount and dollar stores and waned at specialty retailers. But as consumer sentiment picked up over the course of last year, trends shifted in favor of stores frequented by higher-income shoppers and those looking for furniture and other discretionary items, Placer.ai said.
Overall, spending remained strong in 2024 despite consumer confidence flagging for much of the year, the National Retail Federation said. A recent rebound in sentiment has the group optimistic about 2025; Placer.ai, meanwhile, believes that cooling inflation could also sustain retailers this year.
“There is good reason to expect healthy economic growth,” said Jack Kleinhenz, the National Retail Federation’s chief economist. “The resilience of the U.S. consumer should hopefully remain part of the dominant narrative.”
Concerns about high prices and economic uncertainty drove up visits to retailers known for value, such as Dollar General (DG) and Five Below (FIVE), in the first quarter, Placer.ai said. Their traffic started to lag around April, the firm said.
“Visitation trends in the dollar & discount channel slowed considerably,” said R.J. Hottovy, head of analytical research at Placer.ai. “Consumers increasingly turned to superstores and grocery chains, which began offering more competitive pricing during the second half of the year, shifting the perceived value proposition.”
By the third quarter, visits were up at grocery stores and big box retailers like Walmart (WMT) and Target (TGT), which tend to serve higher-income households, according to Placer.ai.
Furniture stores started 2024 with a dip in traffic, but were seeing a 3.5% year-over-year increase in visits by the fourth quarter, Placer.ai said.
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