Placer.ai: These six brands are beating inflation …

Not all retailers are feeling the pain of inflation.

A new white paper from foot traffic analytics firm Placer.ai, finds that while inflation has led to many, if not most, retailers “feeling the crunch,” some brands are thriving despite economic headwinds.  The company also notes that while consumers may be trading down and looking for ways to stretch their budgets, foot traffic data indicates that the true state of retail is not as bleak as may be expected.

“Unsurprisingly, segments that emphasize their value-pricing or market are seeing the most success – but even

within these well-positioned segments, certain brands are pulling ahead of the pack,” the report states.

Placer.ai points to Dollar General, Five Below, McDonald’s, Citi Trends, Ulta Beauty and Planet Fitness as the brands that are beating inflation.

The key takeaways in Placer.ai’s “Brands That Are Beating Inflation” report are below:

• Dollar stores continue to dominate: …And the current environment could induce a longer-term surge. With budgets tightening around the country, many are looking for lower-cost options such as discount and dollar stores.

Recent expansions mean that these chains now have larger store fleets and can reach more shoppers looking to trade down on everyday essentials. If these brands prove capable of taking advantage of this increased interest, the result could be a longer-term boost. 

• Trading down destinations are particularly well positioned: Companies that offer lower-cost alternatives to traditional dining and retail are seeing a visit boost. Brands such as McDonald’s, which can welcome diners trading down from full-service restaurants, or Citi Trends, which can attract shoppers trading down in the apparel space, are particularly well positioned in the current climate. 

• Offering multiple price points under one roof can expand reach: Ulta’s combination of high-end and drugstore beauty products invites a variety of shoppers to make their next purchase at their local Ulta.

Similarly, consumers can visit McDonald’s for pricier combo meals or choose to order from the chain’s dollar menu. The range of price points offered under one roof has allowed these brands to beat inflation by giving visitors the opportunity to trade down within the same store.

• Fitness is rising – and low-cost chains are benefiting the most: Fitness subscriptions tend to come with some sort of commitment, so consumers who joined gyms before inflation hit the headlines may be trying to get the most out of their monthly membership fee and hitting the gym for budget-friendly recreation. And as consumers look to stretch their budgets wherever possible, low-cost chains such as Planet Fitness are seeing the fastest growth.