Have you found yourself heading to Target, Ulta, or other mid-range stores more in the last couple of years? If so, you are not alone. A recent white paper on consumer patterns finds that those mid-range stores are capturing more high-end buyers, likely a result of inflation and economic concerns since mid-2022.
The analysis by Placer.ai found that while Target’s potential market of households earning over $150,000 was 17.8 percent, its captured market was 19.6 percent. A potential market is one that lives near a store, while a captured market is one that takes into account the population’s demographics and psychographic makeup.
“The data also sheds light on the shopping preferences of financially stable individuals, suggesting that they recognize the value offered by mid-range retailers like Target,” the report written for retailers said.
And, as more people returned to offices in the second half of 2022, chains like CVS and Dollar Tree saw more foot traffic between 6 p.m. and 9 p.m.
“Office foot traffic has stood at about 60 percent of pre-pandemic levels since the second half of 2022, indicating that many workers are now back in the office several times a week, which, in turn, is having an impact on retail behavior,” the report said.
In the case of CVS, it saw a 3.4 percent increase in shopping visits in the evening hours from the first quarter of 2021 to the first quarter of 2023.
“This data suggests a return to normal shopping routines, with people making stops at CVS on their way home from work, aligning with the partial return to the office,” the report said.
At Dollar General, as the traffic increased, mostly in rural areas, the company started offering more fresh food options and publishing recipes online.
Feature image, VTT Studio/stock.adobe.com
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