Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Target holiday shopper traffic growth topped Walmart, Best Buy -data

Stock MarketsJan 06, 2022 06:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Holiday shoppers look for deals at the Pentagon City Mall in Arlington, Virginia, U.S., November 29, 2019. REUTERS/Loren Elliott

By Richa Naidu

CHICAGO (Reuters) - Shopper foot traffic grew at Target (NYSE:TGT) during the recent holiday season compared with two years earlier, while visits to both Walmart (NYSE:WMT) and Best Buy stores fell overall, according to data provided exclusively to Reuters measuring shopper visits from Nov. 1 to Dec. 25.

The store data could provide early clues to help investors separate winners from losers after a holiday season marked by the coronavirus pandemic and inventory shortages arising from a supply chain logjam.

Shopper traffic at Target stores rose 6.2% through the holiday period compared with two years ago, pre-pandemic, according to Placer.ai, a research firm that collects anonymized location data from 30 million mobile devices across the country. At rivals Walmart Inc and Best Buy Co Inc (NYSE:BBY), traffic declined by 0.1% and 11.5%, respectively, the data shows.

For a related graphic on early shopping, Covid-19 fears hurt holiday traffic, click https://graphics.reuters.com/RETAIL-HOLIDAYSHOPPING/USA/byprjmlrype/chart.png

Target, Walmart and Best Buy declined to comment.

U.S. November-December traffic was also eroded by people shopping earlier than usual in the 2021 holiday season.

Marshal Cohen, NPD Group’s head retail analyst, said traffic data is helpful to understand whether people are going to stores and making so-called impulse purchases that account for roughly 25% of retailers’ holiday sales.

Still, Cohen said that people worried about COVID-19 have changed the way they shop, increasingly going online which is “a challenge” for some retailers.

According to Refinitiv I/B/E/S, Target’s holiday quarter sales are expected to rise by more than a third versus 2019, while Walmart’s revenue is forecast to rise by about 7% and Best Buy sales are expected rise by about 10%.

Target store traffic increased in every part of the country except Hawaii and Washington D.C., with footfall rising nearly 24% in Vermont and Idaho, compared with 2019, according to Placer.ai.

For a related graphic on Target holiday foot traffic jumps across the country, click https://graphics.reuters.com/RETAIL-HOLIDAYSHOPPING/USA/dwpkrkdddvm/chart.png

Despite Target’s strong holiday season traffic, the retailer's fourth-quarter profit margin is expected to narrow to 25.35% from 27.10% two years ago, due in part to supply-chain logjams.

WHERE PEOPLE SHOPPED

Walmart traffic declined in 20 states – mostly coastal areas, with the retailer harder hit in Florida, New Jersey, Maryland and Delaware. It had higher traffic in several parts of the country, with shoppers going to its stores in many midwestern and southern states.

For a related graphic on, click https://graphics.reuters.com/RETAIL-HOLIDAYSHOPPING/USA/akvezeqqwpr/chart.png

Best Buy’s footfall fell in all but four U.S. states during the period. Analysts have said the electronics retailer was likely unable to source enough products, including TVs and consoles, amid a global chip shortage.

For a related graphic, click https://graphics.reuters.com/RETAIL-HOLIDAYSHOPPING/USA/akpezeqwjvr/chart.png

Traffic does not always reflect trends in sales. “It's very hard to draw a straight line between store traffic and total sales and retail,” said John Mercer, advisory firm Coresight Research’s head of global research.

Overall foot traffic to U.S. stores fell each week from Nov. 1 to Dec. 25 compared with the same weeks in pre-pandemic 2019, according to data from Sensormatic.

“Ever since the COVID lifestyle began, Target has pretty much led the way,” Cohen said. “They’ve had fewer out-of-stocks; they were aggressive with promotions even when Amazon (NASDAQ:AMZN) minimized them; they invested in private-label merchandise; they’ve been a leader in curbside and buy-online-pick-up-in-store.”

Target holiday shopper traffic growth topped Walmart, Best Buy -data
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email