A new report from Placer.ai revealed that Aldi, Grocery Outlet Bargain Market, and Market Basket, each saw month-over-month growth in store visits.
Across the prior 12 months, Aldi saw its largest growth in visits in January (about 7%) and September (about 10%). January and February (more than 20% and about 20% respectively) were the months where more shoppers entered the doors at Grocery Outlet, which saw monthly growth of more than 10% growth in nine months in 2023.
Market Basket largest growth months were February and March (about 10% each) and the company saw month-over-month growth throughout the year. While the grocers were also opening new stores throughout 2024, Placer.ai’s report noted that the new locations did not cannibalize business from existing stores.
On a year-over-year basis, foot traffic at Aldi grew 7.6%, Grocery Outlet was up 10.1% and Market Basket had growth of 3.8%. Year-over-year average visits were also up at Aldi (2.6%), Grocery Outlet (9%), and Market Basket (5%).
Placer.ai said the increase in the number of unique visitors at each indicates the three chains expanded their respective shopper base in 2023. This increase is likely the result of consumers trading down, seeking more affordable retailers to meet their grocery needs.
As consumers sought more affordable options for their grocery needs, a growing number of shoppers have also turned to private label products. While retailers across all channels reported sales growth of store brand items, the additional foot traffic at grocers such as Aldi that sell mainly private label products shows the growing trust shoppers have in these products and a changing mindset about the quality of private label items.
“There is a clear and demonstrable shift to value throughout the retail landscape, and the ability to provide private label products aligns very well with what many consumers are seeking,” said Ethan Chernofsky, senior vice president of Marketing, Placer.ai. “But there is an added opportunity if consumers connect with these products and it offers the ability not just to satisfy a short term demand for value, but to become an actual reason that visitors choose a specific grocery chain.”
Source: Placer.ai, StoreBrands
