2024 Retail Foot Traffic Shows Modest Growth Amid Economic Challenges

Retail foot traffic in the U.S. increased slightly in 2024, rising 0.4% year-over-year (YoY), according to a new report by Placer.ai. The modest growth, achieved despite adverse weather and calendar shifts, underscores consumer resilience and the prioritization of value-oriented shopping.

Overall retail visits showed YoY growth in most months of 2024. However, several periods experienced notable declines attributed to external factors:

• January 2024: Severe winter weather impacted foot traffic across much of the country.
• April 2024: The Easter calendar shift likely contributed to a dip in visits.
• September and December 2024: Both months had one less Saturday compared to 2023, affecting YoY comparisons.

Despite these setbacks, the broader retail landscape remained steady, suggesting potential for further growth in 2025 if inflation continues to ease.

Discount and dollar stores led the charge, with a 2.8% YoY increase in foot traffic, followed by superstores, which saw 1.7% growth. These categories highlight consumers’ focus on value amid economic uncertainty and high prices.

Discretionary categories faced greater challenges, with some, such as Furniture & Home Furnishings, experiencing significant declines earlier in the year. However, the category saw a 3.5% YoY increase in Q4 2024, signaling a potential rebound heading into 2025.

Foot traffic growth varied across states, with Maine (2.2%) and North Dakota (2.0%) leading the nation. Both states demonstrated resilience even during challenging months:

• Maine: Domestic migration trends likely boosted retail visits.
• North Dakota: The prevalence of superstores and discount & dollar stores contributed to the state’s performance.

Other states saw more modest gains, reflecting the uneven distribution of retail success in 2024.

The overall increase in retail foot traffic and the strong performance of value-oriented categories indicate a steady recovery in consumer behavior. If economic conditions stabilize and inflation eases, 2025 could see further gains across the retail sector.

Image: Envato