Placer.ai: Early predictions on retail winners in 2020
Count on Target Corp. to be among the most dominant players of the year.
That’s according to foot traffic analytics platform Placer.ai, which explored the biggest retailers of 2019 to determine who will dominate retailing this year.
Here are some highlights from the Placer.ai report:
• Target: The discounter is crushing it as it moves to include higher-priced offerings that speak to a more upmarket. The data validates its strategy: Twenty-five percent of Target’s audience has a household income of over $100,000, significantly more than Walmart. Decisions to launch multi-format stores and locations in major cities support this focus on higher-income areas.
“These strategies indicate that coming off an exceptional year, Target might have even more growth in its sights,” according to the report.
• Bed Bath & Beyond: Despite a disappointing 2019, the strategic direction seems to be completely dead on. The company recently hired ex-Target executive Mark Tritton as CEO and is rumored to be aiming to bring on former Target CFO Cathy Smith as well.
Target is a perfect North Star for Bed Bath & Beyond for several reasons, according to the report. Both brands are increasingly tilting upmarket with a huge opportunity for growth among a higher-income audience. And Bed Bath & Beyond sees more of its audience with an average household income of above $100,000 than Target. And this is where replicating some of Target’s strategies makes so much sense.
• CVS Pharmacy: CVS began testing its new HealthHUBs at three different locations and with such positive market responses, decided to increase the total amount of HealthHUBs across the country to 1,500 by the end of 2021. Since the launch in February 2019, the pilot locations continue to perform well. Overall visits are trending upward as average duration of customer visits are at an impressive 40-minutes.
“With the addition of its HealthHUBs, CVS has positioned itself well amongst its competitors as the leading one-stop-shop pharmacy,” the report stated. “In an era where e-commerce and digital initiatives are on the rise, it’s important for brands to know how to interact with consumers and create a personal in-store environment, and that’s exactly what CVS plans to do in 2020.”
• Ulta Beauty: The beauty giant Ulta Beauty continued to surprise with its ever-evolving offline and digital marketing strategies. And 2019 was no different, as Ulta committed itself to enhancing the overall consumer experience by offering more personalized in-store experiences. It’s set to finish the year, as one of the top-performing retail stocks of the decade.
Ulta’s strategies are paying off: It experienced a 300% spike in traffic above the baseline average for Black Friday in 2019. Each month from November 1, 2018 to November 30, 2019, saw an overall increase in visits.
“As Ulta separates itself from its competitors and focuses on driving offline traffic and offering unparalleled in-store experiences, it will be on pace to keep its title as the leading beauty brand in 2020,” Placer.ai stated.
Honorable Mention: Wegmans Food Markets, Publix Super Markets, TJ Maxx and Nike.
For the full Placer.ai report, click here.