Target Corp., which reports its fourth-quarter results on Tuesday morning, enjoyed strong foot traffic to its stores in 2023 before seeing a dip in January, according to data from analytics company Placer.ai.
Visits to Target
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during the fourth quarter of 2023 were up 1.6% year over year, according to Placer.ai, and also rose from the previous year in every quarter of 2023. Placer.ai’s research, which also analyzed foot traffic to big-box retailers Walmart Inc.
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Costco Wholesale Corp.
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BJ’s Wholesale Club Holdings Inc.
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and Walmart subsidiary Sam’s Club, found that the superstore and wholesale space performed well across the board in 2023.
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“While all chains saw their monthly visits peak in December, Target experienced the most significant holiday peak, with a 33.9% increase in monthly visits compared to its 2023 monthly average — more than double the increases of the other four chains analyzed,” said Placer.ai’s Shira Petrack in a blog post. “Target also saw the strongest August visit growth relative to its 2023 monthly average as parents and students likely flocked to the chain in search of back-to-school apparel and supplies.”
In January 2024, however, visits to Target declined 4.8% from the previous year, according to Placer.ai. The research company said visits to BJ’s followed a similar pattern, with foot traffic increasing 3.5% during the fourth quarter of 2023 but declining 2.1% in January. Costco saw fourth-quarter 2023 visits grow 4.8% year over year, although its January visits remained high and rose 2.1% year over year.
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Last month, retail giant Walmart reported a fourth-quarter earnings beat, boosted by better-than-expected U.S. same-store sales, that sent the company’s stock soaring.
BJ’s Wholesale Club will report fourth-quarter results before market open Thursday, while Costco reports after market close that day.
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Target shares ended Monday’s session down 3.1%, but have gained 12.6% over the last three months, outpacing the S&P 500 index’s
SPX
gain of 12.3% in that time. BJ’s Wholesale Club’s shares are up 9.4% over the last three months, while Costco’s stock is up 26.7%.
