Target saw strong foot traffic in 2023 but a sharp dip in January, research says

By James Rogers

Target reports fourth-quarter results before market open Tuesday

Target Corp., which reports its fourth-quarter results on Tuesday morning, enjoyed strong foot traffic to its stores in 2023 before seeing a dip in January, according to data from analytics company Placer.ai.

Visits to Target (TGT) during the fourth quarter of 2023 were up 1.6% year over year, according to Placer.ai, and also rose from the previous year in every quarter of 2023. Placer.ai's research, which also analyzed foot traffic to big-box retailers Walmart Inc. (WMT), Costco Wholesale Corp. (COST), BJ's Wholesale Club Holdings Inc. (BJ) and Walmart subsidiary Sam's Club, found that the superstore and wholesale space performed well across the board in 2023.

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"While all chains saw their monthly visits peak in December, Target experienced the most significant holiday peak, with a 33.9% increase in monthly visits compared to its 2023 monthly average - more than double the increases of the other four chains analyzed," said Placer.ai's Shira Petrack in a blog post. "Target also saw the strongest August visit growth relative to its 2023 monthly average as parents and students likely flocked to the chain in search of back-to-school apparel and supplies."

In January 2024, however, visits to Target declined 4.8% from the previous year, according to Placer.ai. The research company said visits to BJ's followed a similar pattern, with foot traffic increasing 3.5% during the fourth quarter of 2023 but declining 2.1% in January. Costco saw fourth-quarter 2023 visits grow 4.8% year over year, although its January visits remained high and rose 2.1% year-over-year.

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Last month, retail giant Walmart reported a fourth-quarter earnings beat, boosted by better-than-expected U.S. same-store sales, that sent the company's stock soaring.

BJ's Wholesale Club will report fourth-quarter results before market open Thursday, while Costco reports after market close that day.

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Target shares ended Monday's session down 3.1%, but have gained 12.6% over the last three months, outpacing the S&P 500 index's SPX gain of 12.3% in that time. BJ's Wholesale Club's shares are up 9.4% over the last three months, while Costco's stock is up 26.7%.

-James Rogers

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03-04-24 1905ET

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