The Impact of Consumer Behavior on Grocery Store Foot Traffic

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It’s been several months since the start of the coronavirus pandemic, and consumer behavior continues to shift. Foot traffic is one indicator of how consumer behavior is evolving. As states continue — or reverse — their reopening plans, grocery stores remain essential businesses. Many stores have implemented social distancing practices and modified their in-store best practices to bring consumers in the door and keep them coming back. Grocery stores are also finding success with curbside pick-up and grocery delivery, and continue to iterate on these services in response to growing consumer demand.

Back in April, we analyzed how grocery stores were faring at the start of COVID-19. Now, we are taking a closer look at four leading grocery stores, Wegman’s, Whole Foods, Safeway, and Publix, to see how foot traffic has changed through June 2020.

Is Foot Traffic Recovering at Grocery Stores?

Foot traffic remained typical through February and early March, until a foot traffic spike occurred around March 13. This was most likely due to consumers stocking up on essentials in preparation for stay-at-home orders. Traffic at all supermarkets continued to decline through the end of March and into April, reaching its lowest point in mid-April. Daily foot traffic then began to increase for all brands through May, before leveling off in June.

Holidays Still Increase Grocery Store Foot Traffic

Holidays continue to fuel foot traffic to grocery stores: Super Bowl LIV, Valentine’s Day and Easter all generated additional foot traffic. Unlike other stores, Publix chose to stay closed during Easter, which explains its significant decline on April 12. Mother’s Day, Memorial Day, and Father’s Day also caused spikes in foot traffic, albeit to a lesser extent. This shows that consumers are still going in-store to purchase last-minute flowers and gifts, or to pick up groceries or catering in preparation for at-home celebrations and observances.

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Specialty Grocers Seeing Slower Recovery

While all the supermarket brands we examined have been impacted by COVID-19, Safeway and Publix have recovered more foot traffic than other brands. For the week of June 14, foot traffic to Safeway and Publix was 28% and 26% lower, respectively, than for the week of February 2. For comparison, foot traffic to Whole Foods remained 44% lower. Safeway and Publix are often seen as more cost-effective grocery stores than Whole Foods or Wegman’s. This could indicate that consumers in the post-COVID-19 economy are more price-conscious than before.

However, while foot traffic is an important indicator, it doesn’t necessarily mean that fewer consumers are shopping at Whole Foods and Wegman’s. Less foot traffic in store could be a reflection of consumers opting to use new curbside and delivery services. Regular Whole Foods customers, for example, might be purchasing their groceries through Amazon instead. Consumers might simply be less familiar with Publix, Safeway, and Wegman’s curbside pickup and delivery services, making them more inclined to go into the store. While convenience isn’t a new consumer behavior trend, it is becoming more prominent as stores find new ways to give consumers a safer shopping experience, and consumers become more familiar with these services.

Using Foot Traffic Analytics for Consumer Behavior Insights

Businesses can use foot traffic analytics to get insight into consumer behavior and to understand how their business is performing compared to the competition. Customer insights derived from location intelligence can also inform businesses on how to reconnect with their customers. By learning about customer preferences and habits, businesses can adjust their digital marketing strategies, and product or service offerings, in order to increase foot traffic, sales, and customer retention. To learn more, book a meeting with us today.

Frequently Asked Questions

Discover how analyzing real-world movement patterns can reveal valuable trends in customer behavior, optimize business operations, and enhance strategic decision-making.

What is site selection and why is it important?

Site selection is the strategic process by which businesses identify, evaluate, and choose optimal locations for their operations. This process is paramount as the location of a business directly influences factors such as accessibility, visibility, profitability, and market longevity. For retailers, the right site can mean higher customer footfall and increased sales. In real estate, a well-selected site can promise lucrative returns on investment and tenant stability. Financial service firms leverage site selection to position their branches or ATMs in high-demand areas. Essentially, site selection plays a pivotal role in ensuring the success and growth of a business by aligning its physical presence with market opportunities and demands.

How does location intelligence enhance site selection?

Location intelligence refers to the harnessing of geospatial data to derive actionable insights, which can significantly enhance the site selection process. By analyzing data like consumer demographics, foot traffic patterns, competitor locations, trade area data, and more, businesses can make more informed decisions about where to establish or expand their operations. Location intelligence allows for a deeper understanding of market dynamics, revealing hidden opportunities or potential pitfalls. For instance, retailers can identify gaps in the market, real estate professionals can forecast property value trends, and financial service providers can assess areas with high customer demand. Advanced tools, like those offered by Unacast, further refine these insights by leveraging AI and machine learning, enabling more precise and timely decision-making.

What challenges do businesses face in the site selection process?

Unacast provides invaluable support to businesses during the site selection process through its advanced location data and analytics software, all powered and refined by Artificial Intelligence and Machine Learning technologies. The company offers a suite of products designed to deliver accurate, actionable, and comprehensive location intelligence. This data proves crucial for businesses looking to understand consumer behavior, analyze traffic patterns, evaluate competitor locations, and much more. With Unacast’s robust tools, businesses in retail, real estate, and financial services can derive insightful information necessary for making strategic, informed site selection decisions. The platform not only provides reliable data but also ensures it is readily actionable for businesses, whether they are looking to open a new store, invest in property, or expand their financial services to new locations.

What types of location data are crucial for informed site selection?

Demographic data offers insights into the age, income, and lifestyle of people in a particular area, helping businesses understand their potential customer base. Foot traffic data provides information on the number of people visiting a location, which is crucial for retailers to estimate the store's potential popularity and for real estate professionals to assess an area's vibrancy and demand. Geographic Information System (GIS) data helps in visualizing and analyzing geographical details, supporting companies in identifying accessible and strategically located sites. Understanding the proximity to competitors, accessibility, and the socio-economic profile of the surrounding areas is also vital. Unacast’s platform aggregates and analyzes these various data types, providing a holistic view that significantly empowers businesses in their site selection endeavors.

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