A recent Placer.ai report indicates several retail and brick-and-mortar trends that have prevailed during the first six months of 2023. Throughout this data, one thing is for sure – physical demand is evident, showcasing successful brands in today’s dynamic economic environment. Year-over-year foot traffic increased .05% compared to June of 2022. This jump indicates optimism for the remaining half of 2023. With back-to-school shopping well underway for the rest of the summer season, this traffic rate will likely remain positive.
An ongoing trend in self-care products has created a demand in the beauty sector. Two key players in this industry, Ulta Beauty and Bath & Body Works have some of the largest year-over-year jumps in visits. This jump in visit indicates that consumers are prioritizing experiences and retail spaces that provide value. In-store shopping at beauty retailers allows shoppers to test out products in-person, creating a sensory journey that makes the brick-and-mortar shopping experience that much more desirable.
Along with the beauty sector, off-price retailers follow closely in pursuit. Retailers such as TJ Maxx, Marshalls, Burlington and Ross Dress for Less have capitalized on the growing demand for apparel and home goods throughout 2023. As demand grew, so did their store counts and growth initiatives for the future. This played a key part in the year-over-year growth for off-price retailers – TJ Maxx up 13.7%, Marshalls 13.9%, Burlington 10.9% and Ross Dress for Less 5.1%.
“And as consumers continued to favor experiences and retail visits that offered something extra, the treasure-hunt atmosphere that awaited consumers in-store may have also helped drive foot traffic. With plenty of new merchandise available to off-price sellers, consumers had ample motivation to visit off-price stores for attractive finds at steep bargains,” according to the Placer.ai report.
Consolidation is another trend that has paved the way for brands undergoing expansions this year. While some companies are downsizing their store count, others are taking advantage of these open spaces and new real estate opportunities. This creates an opportunity for retailers to reach new markets without having to build completely new storefronts.
The first half of 2023 for retail has revealed the demand for many sectors in retail, especially brick-and-mortar. This showcases the industry’s ability to thrive in today’s dynamic and ever-changing shopping environment.
Source: Retail Halfway Point 2023 – Placer.ai
Photo Credit: Unsplash
