Placer.ai: Health clinics boost traffic at Kroger banners, H-E-B
Health clinics within grocery stores are leading to rises in foot traffic.
That’s according to new data from retail analytics firm Placer.ai, which cites Kroger banners and H-E-B stores with in-store clinics as evidence of a positive correlation in visits. Placer.ai said Kroger introduced its in-store medical center, The Little Clinic in 2003, and today operates over 225 Little Clinic locations across its Kroger banner, as well as regional banners Dillons, Jay C Food Stores, Fry’s and King Soopers.
In the first half of 2024, the eight Dillons locations with clinics saw, on average, 93.0% more visits per location than the chain’s banner-wide average. Jay C, which offers two in-store clinics, also saw visits to these venues outpace the first half of 2024 banner-wide average by 92.9%. Placer.ai said relatively small overall footprints may have contributed to their outsize visit differences for both chains, as Indiana-focused Jay C operates just 22 locations while Kansas-based Dillons has some 64 locations. However, similar trends could be observed at Kroger (43.0%), Fry’s (19.2%), and King Soopers (16.5%) – as well as at H-E-B (14.5%).
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Health clinics appear to lead to an increase in higher-income shoppers as well. Placer.ai noted that for some chains, including King Soopers, H-E-B and Jay C, the health clinics are positioned to be in areas serving higher-income communities.
The median household income (HHI) of King Soopers’ in-store clinic’s potential markets, for example, came in at $92.3K in the first half 2024, which is significantly above the chain’s overall potential market median HHI of $88.1K. Similarly, the potential markets of H-E-B and Jay C Food Stores with clinics had higher median HHIs than the chains’ overall averages.
Texas grocery chain H-E-B operates 12 primary care clinics under its H-E-B Wellness banner, with many of them located inside stores. Placer.ai found that in the first half of the year, some 83.6% of visitors to H-E-B came from less than 10 miles away, but for locations with primary care clinics, this share increased to 88.0%. Placer.ai says that this suggests that wellness services are particularly appealing to nearby residents, strengthening H-E-B’s connection with local consumers even further.
H-E-B’s in-store health clinics seem to be attracting more middle class visitors than Kroger’s in-store clinics. Between June 2022 - May 2023, the share of “Urban Cliff Dwellers” in the weekday captured markets of the Cypress and Katy locations stood at 9.5% and 7.2%, respectively. But once the stores had clinics in place, those numbers jumped to 12.4% and 11.0%, respectively.
“As grocery stores lean into healthcare, they are transforming into multifaceted hubs that offer both essential health services and everyday shopping needs,” said Placer.ai. “Retailers like Kroger and H-E-B are reaping the benefits of boosted foot traffic, higher-income visitors, and strengthened community ties – while offering their shoppers convenience that helps streamline their daily routines.”
