1、July 2023Retail at the HalfwayPoint of 2023Explore the retail trends that have prevailed in 2023 so far andfind out which industries and brands are finding success in adynamic economic environment.Table of ContentsSummer Sun Is Out and So Are Shoppers3Beauty and Fitness Foot Traffic Becomes Routine4

2、Fitness Chains Provide a Cost-Effective Fix5Health and Wellness in Food6Healthy Restaurant Chains6Grocers Promote Total Health Beyond Food7Off-Price and Dollar Stores Seized the Day8Ollies Bargain Outlet and Five Below8Off-Price Power10Capitalizing on Consolidation11Burlington and Barnes&Noble11Retu

3、rn to Office and the Retail Impact13H1 2023 in The Books16Key Takeaways16 2023 Placer Labs,Inc.|More insights at placer.ai|2Summer Sun Is Out and So Are ShoppersDespite its fair share of success stories,retail in 2022 was greatly impacted byinflation and soaring gas prices.And although 2023 started

4、offstrong relative to theOmicron-impacted early months of 2022,retail visits fell in April and May asconsumers continued to struggle with high prices and tighter budgets.But the lastmonth of H1 2023 offered reason for optimism as year-over-year(YoY)foot trafficturned positive.Could we be starting to

5、 see the fruits of the efforts many brands andindustries have made to drive traffic and position themselves for long-term growth?This report highlights some of the retail successes of the first half of 2023 and thebiggest trends to follow as H2 gets underway.Using location intelligence,weevaluated t

6、he impact of the heightened demand for health and wellness acrosscategories;analyzed the ongoing strength of value-focused retailers;looked at thelocation analytics behind some major retail real estate takeovers;and revealed theconnection between return-to-office trends and local retail patterns.Kee

7、p reading tolearn about the biggest retail winners of the past six months and uncover emerging 2023 Placer Labs,Inc.|More insights at placer.ai|3consumer trends that are likely to shape the retail landscape in the second half of2023.Beauty and Fitness Foot Traffic Becomes RoutineIn recent years,self

8、-care has taken on a more central role in consumers routines,making beauty and fitness two of the biggest winners of 2022.Location intelligencesuggests that the trend has continued in H1 2023 as consumers continued to look foraffordable luxuries and pastimes and YoY visits to both categories far out

9、paced thewider retail average.Ulta Beauty and Bath&Body WorksDeliver ExperiencesThe increased demand for beauty andself-care drove significant YoY visitincreases for two of the largest beautyretailers Ulta Beauty and Bath&BodyWorks.2023 Placer Labs,Inc.|More insights at placer.ai|4The jump in visits

10、 relative to the already strong H1 2022 could indicate thatinflation-strapped consumers are prioritizing experiences and favoring retailerswhere the visit itself provides value and a visit to Ulta or Bath&Body Works fits thisbill perfectly.In-store shopping allows visitors to try out fragrances,test

11、 new makeup,and get the input of store staff,making a trip down the aisles a sensory journeyworthy of an in-person trip.Fitness Chains Provide a Cost-Effective FixAlso in the self-care sector,fitness clubs were another retail category thatexperienced strong visit growth in H1 2023.And many chains,in

12、cluding LA Fitness,24Fitness,and ES Fitness also experienced increased visit frequency.In addition to the renewed social appeal of returning to the gym after a pandemichiatus,gym-goers in H1 2023 likely viewed their fitness hobby as a budget-friendlypastime in light of the current inflationary clima

13、te.Since most gym membershipsgrant unlimited access to the facilities,an additional workout or extended visit to thesteam room allows fitness consumers to spend time out of the house withoutbreaking the bank.2023 Placer Labs,Inc.|More insights at placer.ai|5Health and Wellness in FoodAs beauty and f

14、itness chains benefit from the entrenchment of healthy habits,grocery and dining brands that focus on nutritional health and wellness are alsoseeing a boost.Healthy Restaurant ChainsAnalysis of health-focused restaurant chains sweetgreen,CAVA,and Crisp&Greenrevealed the positive impact that the incr

15、eased interest in health and wellness ishaving across categories.Despite the rising cost of eating out,positive YoY foot trafficto these salad and veggie-friendly eateries indicates that consumers are placing valueon eating well even when budgets are tight.Notably,this trend applies to consumers of

16、nearly all earning levels.In H1 2023,thepotential markets defined by sweetgreen,CAVA,and Crisp&Greens trade areasincluded diners with varying amounts of disposable income.Perhaps as expected,allthree chains trade areas had a relatively high share of residents with$100-$150K ofannual disposable house

17、hold income(HHI).But sweetgreens trade area also had ahigh share of residents with either disposable HHI of less than$25K(17.0%)or morethan$150K(19.3%).Meanwhile,the potential market of both Crisp&Green and CAVAhad a relatively large share of consumers with disposable HHI of$25K-$50K.2023 Placer Lab

18、s,Inc.|More insights at placer.ai|6The potential for these chains to drive foot traffic from consumers at nearly everyincome bracket indicates that diners across the board are prioritizing healthy eating.Grocers Promote Total Health Beyond FoodLeading grocery players are also leaning into the height

19、ened interest in health andwellness.H-E-B the dominant grocer in Texas found continued success in H1 2023as it developed its fleet of primary care clinics and nutrition services.The company one of the growing number of grocers that have integrated health services into theirbrands launched its nutrit

20、ion and clinical services“H-E-B Wellness”platform lastyear.The platform offers consultations with dieticians and physicians,lab testing,andvaccines at various price points based on either a monthly membership or single visitfee scale.Comparing visits to H-E-B locations with wellness services with vi

21、sits to the chainoverall in H1 2023 revealed that stores that offered clinical or nutritional 2023 Placer Labs,Inc.|More insights at placer.ai|7consultations attracted visitors with a higher median HHI than those that did not.H-E-B stores with these services also had greater YoY visits per venue gro

22、wth thanH-E-Bs without these programs.The higher median HHI of visitors to H-E-B stores with the wellness platform could bedue in part to the added expense of healthcare or nutritional consults on top ofgroceries.H-E-B appears to be attracting more affluent consumers who likely haveother healthcare

23、options perhaps due to the convenience of grocery shopping andgetting a check-up in one stop.And H-E-B can benefit from visits from these higherincome consumers who likely have more spending power throughout the store.Additionally,because H-E-Bs wellness platform offers monthly subscriptions,visitor

24、swho utilize these services may be motivated to visit a participating store moreregularly,which likely contributed to these stores significant visits per venue growth.Off-Price and Dollar Stores Seized the DayDiscount and dollar stores as well as off-price retailers also came out on top in H1 asinfl

25、ation-impacted shoppers including regular consumers of the category and thosewho traded down from other retailers flocked to these chains in search of value.2023 Placer Labs,Inc.|More insights at placer.ai|8Ollies Bargain Outlet and Five BelowOllies Bargain Market and Five Below have been expanding

26、their store fleets andseeing YoY visit growth for quite some time.And diving into the psychographicmakeup of these brands visitor base highlights the variety of value-consciousshoppers and the diversity of the Discount&Dollar Store category.Trade area analysis of Ollies and Five Below using the Spat

27、ial.ai:PersonaLive datasetrevealed that,in H1 2023,Five Below had a greater share of visitors from UpperSuburban Diverse Families and Young Professionals,while Ollies claimed a highershare of Rural Average Income and Rural High Income visitors.The differences between the two chains visitor base are

28、also apparent whenanalyzing stores on a local level.In Greenville,NC,and Opelika,AL where consumershad the option of visiting both retailers in H1 2023 Ollies drove traffic from a largershare of Rural Average Income visitors while Five Below attracted a greater share ofYoung Professionals.2023 Place

29、r Labs,Inc.|More insights at placer.ai|9This indicates that,in the first half of 2023,discount and dollar store shoppingappealed to consumers of many backgrounds.And while some may have beenregular dollar store visitors,others were likely motivated by inflationary concerns andthe need to stretch the

30、ir dollars further.And because Ollies and Five Below tend toresonate with local audiences that match the visitor mix of the chains as a whole,there should be plenty of room for both brands to succeed as they expand into newmarkets.2023 Placer Labs,Inc.|More insights at placer.ai|10Off-Price PowerAlo

31、ng with discount and dollar stores,off-price retailers among them T.J.Maxx,Marshalls,Burlington,and Ross Dress For Less capitalized on the growing demandfor value in the apparel and home goods spaces in H1 2023.And as demand grew,many of these brands continued to up their store counts,which likely a

32、lso played apart in the YoY visit growth of off-priceretailers.And as consumers continued to favorexperiences and retail visits that offeredsomething extra,the treasure-huntatmosphere that awaited consumersin-store may have also helped drive foottraffic.With plenty of new merchandiseavailable to off

33、-price sellers,consumershad ample motivation to visit off-pricestores for attractive finds at steepbargains.Capitalizing on ConsolidationAnother recurring theme in H1 2023 was the consolidation of certain retail categories,with several larger retailers standing to gain from the closures of competing

34、 chains.Burlington and Barnes&NobleBed Bath&Beyonds recent Chapter 11 filing put many of the brands retail locationson the market,and several companies looking to expand their footprints includingBarnes&Noble and Burlington have been quick to snatch up these venues.Zooming in on two of Burlington an

35、d Barnes&Nobles lease takeovers can lendinsight into how the new locations may be an ideal fit for the chain.An H1 2023 trade area analysis of an existing Burlington store in Jacksonville,NC anda soon-to-be converted Bed Bath&Beyond in Morehead City,NC revealed that the 2023 Placer Labs,Inc.|More in

36、sights at placer.ai|11two venues had minimal trade area overlap.Additional analysis also revealed that aBurlington in Odessa,TX and a nearby Bed Bath&Beyond that will become aBurlington in Midland,TX also had limited trade area overlap.This suggests thatBurlington can expect little cannibalization o

37、f existing store visits as it converts thesenew locations.Trade area analysis revealed a similar theme for Barnes&Nobles venue bids.Thebookseller is set to take over a Bed Bath&Beyond in South Portland,ME near an 2023 Placer Labs,Inc.|More insights at placer.ai|12existing Barnes&Noble location in Au

38、gusta,ME and in H1 2023,these venues hadrelatively small trade area overlap.In Santa Fe,NM,trade area analysis of thebooksellers planned takeover told a similar story.Here,an existing Barnes&Noble inAlbuquerque,NM had almost no trade area overlap with the Santa Fe,NM Bed Bath&Beyond in H1 2023.It ap

39、pears that the Santa Fe,NM and South Portland,ME marketsare virtually untapped by Barnes&Noble thus far,and both could have the potentialto attract new visitors to the chain going forward.2023 Placer Labs,Inc.|More insights at placer.ai|13Return-to-Office and the Retail ImpactThe final stop of this

40、report is an exploration of the impact of employeesreturn-to-office(RTO)on retail visits.Foot traffic to U.S.office buildings hoveredaround 60%of pre-pandemic levels for most of H1 2023 as flexible work modelspersisted,but some business centers are experiencing higher shares of on-siteworkers than o

41、thers.These patterns have far-reaching effects on the planning andservice of transportation networks and on the businesses that hope to attractemployees during their workday.Analysis of YoY office and retail foot traffic for several shopping districts in H1 2023revealed the correlation between workp

42、lace attendance and retail foot traffic innearby shopping districts.In broad strokes,the shopping districts with a largerincrease in YoY office attendance were more likely to have greater YoY retail foottraffic growth signaling the recovery of commercial and employment hubs andoffering further evide

43、nce of the close relationship between workers and areabusinesses.Shopping districts could benefit from investing in co-working spaces withthe potential for daily traffic from different groups of workers on their respectiveon-site work days.2023 Placer Labs,Inc.|More insights at placer.ai|14H1 2023 I

44、n The BooksThe current economic landscape is not without its fair share of challenges for bothretailers and consumers.But H1 2023 revealed the many sectors and companies thathave proven their ability to thrive in a dynamic market.2023 Placer Labs,Inc.|More insights at placer.ai|15As businesses conti

45、nue to recover from the pandemic and inflation begins to ease,brands can take the lessons learned from recent years and chart a path forward forongoing success.Key Takeaways1.Summer Retail Looks Bright.With May 2023 seeing the lowest rate ofinflation in two years,overall retail foot traffic could re

46、main elevated into H22023.2.Beauty and Fitness Sustain Performance.Home-grown habits gave rise toconsistent visits in the fitness and beauty categories as demand for cosmeticsand health clubs endures.3.Health is High-Priority.Veggie-heavy restaurants attract consumers of allmeans.And grocers that pr

47、omote nutrition as part of a healthcare platformgarnered consumer attention in H1 2023.4.Off-Price and Dollar Stores Soared.Consumers of various backgroundsflocked to discount chains in search of value,proving that these retailers havesomething for everyone.5.Some Rise Where Others Fall.Consolidatio

48、n in various retail categories haspaved the way for brands undergoing expansion to take over valuable realestate and reach new markets without cannibalizing existing visits.6.Return-to-Office(RTO)and Retail Link.A close relationship exists betweenworkplace attendance and retail foot traffic.Commercial hubs with a largerincrease in YoY office attendance were more likely to have greater YoY retailfoot traffic growth.2023 Placer Labs,Inc.|More insights at placer.ai|16