Target Corp. had a successful year in 2023, with strong foot traffic to its stores throughout the year. However, the company experienced a decline in January, according to data from analytics company Placer.ai.
Placer.ai’s research revealed that visits to Target during the fourth quarter of 2023 increased by 1.6% compared to the previous year. This positive trend continued throughout the year, with visits rising from the previous year in every quarter of 2023. Target’s foot traffic performance outshined other big-box retailers such as Walmart, Costco, BJ’s Wholesale Club, and Sam’s Club.
In December, all chains saw a peak in monthly visits due to the holiday season. However, Target experienced the most significant increase, with a 33.9% rise compared to its 2023 monthly average. This increase was more than double that of the other four chains analyzed by Placer.ai. The research company attributed Target’s success in December to its strong appeal during the holiday shopping period.
Additionally, Placer.ai noted that Target saw substantial growth in August compared to its 2023 monthly average. This growth was likely driven by parents and students shopping for back-to-school apparel and supplies.
Unfortunately, January 2024 brought a decline in foot traffic for Target. Visits decreased by 4.8% compared to the previous year. This decline mirrored a similar pattern seen in BJ’s Wholesale Club, which experienced a 2.1% decrease in foot traffic in January after a 3.5% increase during the fourth quarter of 2023.
On the other hand, Costco had a strong fourth quarter in 2023, with visits growing by 4.8% year over year. Although January visits remained high, they rose by 2.1% compared to the previous year.
The research findings from Placer.ai highlight the overall positive performance of superstores and wholesale clubs in 2023. Target’s success during the holiday season and back-to-school period demonstrates its ability to attract customers during key shopping periods.
In terms of stock performance, Target shares ended Monday’s session with a 3.1% decline. However, the company has gained 12.6% over the last three months, outpacing the S&P 500 index’s gain of 12.3% in that time. BJ’s Wholesale Club and Costco have also seen positive stock performance, with increases of 9.4% and 26.7%, respectively, over the last three months.
Overall, Target’s strong foot traffic in 2023 indicates a positive trend for the company. Despite a decline in January, the company’s performance during the holiday season and back-to-school period bodes well for its future success.
