Placer.ai: Promotions key for driving in-store holiday traffic
New retail data reveals that retailers will be facing a more challenging environment in the coming weeks.
Retail foot traffic firm Placer.ai’s latest report points to decreased foot traffic and a divided retail environment as key factors impacting the upcoming holiday season. Foot traffic has seen year over year decreases since the spring, down in June (-1.5%), July (-1.2%), August (-1.3%) and September (-2.7%), which Placer.ai says highlights the toll of lingering financial uncertainty and strain, making holiday promotions all the more important this year.
“With many consumers cutting back on discretionary spending, well-timed and well-targeted campaigns will be essential to encourage shoppers to spend more freely during the holidays,” noted Placer.ai. “These promotions don’t have to rely solely on price cuts – pop-culture collaborations and other creative product launches have also proven highly effective in driving traffic this year.”
[READ MORE: Placer.ai: Summer traffic went cold for outlet malls in Q3]
When it comes to retail visits, some categories are performing better than others. Placer.ai’s data shows that off-price apparel chains (4.9%), luxury department stores (1.8%) and home furnishing stores (1.3%) have seen increases in visits from October of last year to September of this year. Mid-tier department stores (-4.1%), traditional apparel chains (-3.3%) and electronics stores (-2.0%) have seen the greatest decreases in visits during the same period.
Shoppers in different income brackets are also shaping the upcoming holiday landscape. In luxury apparel, where the median household income (HHI) is well above the national average of $79,600, visitor income follows a distinct seasonal rhythm. During the early holiday shopping period, HHI remains lower in October and dips slightly in November as middle-income shoppers take advantage of early promotions to snag products that may be out of reach the rest of the year.
In the off-price apparel segment, Placer.ai says that median HHI typically declines during the holidays – especially in December – indicating an influx of more price-sensitive shoppers. Over time, this visitor base has become even more value-driven, reinforcing the importance of promotional messaging that emphasizes strong deals and discounts.
“This holiday season will reward advertisers and retailers who recognize the growing retail divide and tailor their messaging to the shoppers most likely to visit during the holidays – whether married homeowners on the hunt for electronics or affluent suburban families seeking beauty products,” said Placer.ai. “As in 2024, acting early to offset a shorter core shopping period will be essential to capturing demand. And those who combine sharp timing with audience insight will be best positioned to turn a complex season into a strong finish.”
Placer.ai’s full Winning Holiday Shoppers in 2025 report can be found here.
