Superstores including Walmart, Target, Costco, BJ’s, and Sam’s Club experienced a dip in store visits in May, compared to the same time last year; however, recent data from Placer.ai indicates that the gap narrowed in June and July. Despite the dip, superstore brands are overall experiencing more foot traffic than pre-COVID levels, according to a blog post from Shira Petrack, content manager at the retail insights company.
Petrack says the narrowing gap indicates that the worst of the inflation-related consumer challenges may be over, as customers return to stores.
Leading the superstore crusade is Costco which continues to outperform its competition in terms of year-over-year visits. In July, it experienced a 4.6 percent increase in store visits compared to the same time last year. The other retailers, however, saw a drop: Target and Sam’s Club fell one percent, Walmart by 0.4 percent, and BJ’s by three percent. Nevertheless, this data beat out May 2023 values which saw declines across the board, led by an 8.2 percent drop in store visits at BJ’s compared to the year before and a 5.5 percent decrease in store visits to Walmart.
Each retail concept is not equal. Costco’s success may be due, in part, to the higher median household income of shoppers in its area compared to shoppers at Target, Walmart, BJ’s, and Sam’s Club.
“The wholesale club’s relative strength indicates that although the wider economic outlook is improving, ongoing economic headwinds are still weighing on consumer spending, and brands that cater to a more affluent clientele are likely less impacted,” wrote Petrack. Full Story
Related: Island Pacific Opens 19th Location; Food Prices Rose in July