Inflation may finally be making shoppers weak in the knees. According to a recent study by Placer.ai titled Retail Foot Traffic Recap — March 2023, less people are walking through the retail doors compared to a year ago.
U.S. Department of Commerce data shows month-over-month retail sales dropped in March, and Q1 in-person visits also were down when compared to the January 2022 benchmark. Some states fared better than others. Nationwide, March 2023 retail traffic dipped 5% year-over-year, but in the top-performing states March YoY showed a difference of less than 2.2%. The YoY margin was wider (7.4%) in the worst-performing states. Seven of the 10 best states for foot traffic in March 2023 — Massachusetts, Rhode Island, Pennsylvania, New Jersey, Connecticut, New York, and Vermont – were in the northeast.
Putting up March 2023 foot traffic numbers against March 2019 numbers, which was pre-pandemic, paints an uglier picture for the worst-performing states. The year-over-four-year gap in March was more than 10.3% in those states, while it was under 2.1% for the best-performing states. Again, states in the northeast — Connecticut, New Hampshire, Maine, and Vermont — took up space in the top 10.
Discount and dollar stores did manage to increase foot traffic during the first three months of 2023. Those retailers showed upticks of 4.2% in January, 1.9% in February and 0.9% in March. Fitness centers led in drawing more in — 29.8% in January, 16.8% in February, and 11.1% in March.
The Placer.ai research also notes that even though sales were down in March 2023, consumer confidence is on the rise.
