The news: Industry KPI data from Placer.ai reveals a clear divide in retail foot traffic trends. Essentials-focused merchants and dollar stores are maintaining growth while discretionary-heavy sectors like department stores and housing-related chains fall behind.

Winners and losers:

• Footfall at discount and dollar stores grew the strongest during the first half of this year, peaking at 8.9% YoY in April before landing at 3.5% in June. This category’s consistent outperformance reflects consumer trade-down behavior and a strong thirst for value, as cited by retailers like Dollar General.
• Grocery stores had positive growth for most of the period, ranging between 0.7% YoY in March and 4.1% in April.
• Home improvement fluctuated, falling 7.1% in February, making small gains in May, and dipping again by June.
• Department stores consistently trailed, with a 6.7% YoY decline in June.

Pivoting to value: Seeing these trends, retailers are emphasizing value and expanding into better-performing business lines.

• Kroger is bolstering its value focus and messaging, lowering prices on thousands of items and offering paper versions of its weekly digital deals for shoppers who don’t look online.
• Home Depot and Lowe’s are acquiring supply companies to counter the stalling housing market. Lowe’s also launched a home improvement creator network to engage younger audiences through social media.
• Nordstrom is ramping up its off-price growth with Nordstrom Rack stores, which have attracted new customers. Rack stores now outnumber full-line locations.