Positioned for Success: Retail, dining segments to watch in 2024
Amid price hikes, rising interest rates and mounting consumer debt, the retail industry did pretty well in 2023 — certainly a lot better than some experts had predicted — as consumers continued to shop.
As to what to expect this year, foot traffic analytics firm Placer.ai has dived into its rich treasure chest of data to find which segments are best positioned for success in 2024.
Here’s a brief recap of the firm’s “7 Retail & Dining Segments to Watch in 2024.”
•Specialty Grocery: Visits to high-end grocers have surged as consumers seek seek out specialty ingredients to recreate restaurant-quality dishes at home. Rising interest in sustainability, natural products and organic ingredients — especially among Gen Z — is also helping to drive growth.
“With restaurant prices likely increasing slightly in 2024, consumers looking to feed their families tasty dishes without breaking the bank — or shoppers feeding the growing demand for natural food products — will likely keep visits to specialty grocers high in the coming year,” the report said.
•Personal Grooming & Self Care: Chains that offer non-consumable affordable indulgences such as tanning salons, hair-removal parlors and eyelash salons have seen an increase in visits that will likely continue in the coming year. Deka Lash, Tan Republic, Glo Tanning, and LaserAway are some of the brands whose year-over-year visits increased significantly in 2023, and the growth does not appear to be slowing down.
Since younger shoppers tend to spend more than the average American on beauty and self care — and Gen Z’s spending power is only expected to grow in 2024 — personal grooming chains are well positioned to succeed even further this year, according to Placer.ai.
•Upscale Apparel: Retailers such as Theory, Anthropologie, and Marine Layer all saw year-over-year increases in monthly visits every month of 2023, helped by the “quiet luxury” trend that fueled demand for high-quality, non-ostentatious fashion.
Even as many companies cater to the increasing share of budget-conscious consumers, other retailers willing to invest in quality materials and offer a premium customer experience can thrive in 2024 by meeting the needs of more affluent audiences, predicted Placer.ai.
•Themed Fitness Concepts: Another personal care-related segment slated for growth this is themed fitness, which takes in gyms and studios that focus on a particular type of activity or fitness regimen, such as climbing, yoga, Pilates or HIIT (a type of interval training). Visits to these venues are skyrocketing, with the number of monthly visits and the average visit frequency on the rise.
•Affordable Luxuries: Consumers are willing to splurge on small treats that won’t break the bank, and budget-friendly treats — ranging from craft doughnuts to specialty coffees — provide the perfect affordable and guilt-free pick-me-up. Parlor Doughnuts, Pickleman’s Gourmet Cafe, and Dutch Bros are some of the chains that benefited from this trend in 2023 and will likely continue to grow in the new year.
On the dining scene, Placer.ai said the demand for healthy dining concepts — restaurants focusing on whole, healthy foods — is likely to continue growing in 2024. So is the demand for fried chicken, with chains such as Dave’s Hot Chicken, Raising Cane’s and Huey Magoo’s Chicken Tenders taking the country by storm.
“It seems, then, that while some diners will favor healthy foods in the new year, other consumers are likely to continue driving visits to fried chicken chains in 2024,” noted Placer.ai.