What does foot traffic data show about where retail is headed this year? According to an executive from location analytics firm Placer.ai, winning in 2026 will require retailers to consider the value and experience they bring to the table.
During WWD’s “Retail 2026: Insights & Data Trends Shaping the Future of Shopping” webinar, moderated by Lauren Parker, director of Fairchild Studio, Ethan Chernofsky, chief marketing officer of Placer.ai, revealed what visit trends indicate about consumer behavior.
One major shift has been that convenience is no longer the sole or main attraction for a store visit. Although there are still some limits to how far shoppers will travel, today more is factoring into their decisions — including price and brand. They are visiting more stores in the same category and venturing farther to get a good deal. Retailers therefore need to focus on their “reason for being” and deliver value to continue to compete.
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“The consumer is choosing what they care about, and there are certain retailers who are able to deliver on that, and there are others that are struggling to understand where they fit within this decision matrix,” said Chernofsky. “And once we realize that, it gives us a big sense of how retail is going to continue to unfold in the coming years.”
Around 2021 and 2022, individual visits were fewer, but the customers who did visit a store tended to spend time and money there. Now, instead of competing for visits, stores are duking it out over share of spend in a category, since consumers are more willing to shop around. Toward that goal, retailers can arm store associates with technology that supports sales. And to encourage dwell time, Chernofsky suggested retailers focus on added services, such as incorporating food and beverage experiences. Malls have succeeded with “place making” tenant curation strategies that blend shopping with dining, fitness and entertainment. Refocusing on core experiences — like Barnes & Noble has done with book readings and signings — can also help legacy retailers stage a comeback.
In-store visits are valuable, since the time spent is usually 20 to 30 minutes, compared to the two to three minutes that a shopper might engage with an e-commerce site on average. Consumers who have made it in the door are also more open to impulse buys. To generate bigger baskets and engage shoppers, stores can integrate retail media, offering product suggestions and creating spaces for advertising, such as signage, endcaps or shops-in-shop.
Promotions can also drive in-store visits and engagement, but this doesn’t have to mean discounts. Placer.ai has seen successful limited-time offers that entice customers with something special. For inspiration, retailers can look toward Starbucks as a “gold standard,” with the coffee chain creating moments like Red Cup Day.
According to Chernofsky, there is clear value in brick-and-mortar retail. Consumers who buy apparel and footwear in-store have the opportunity to try merchandise on before checking out, whereas indecision on fit when purchasing via e-commerce often leads to bracketing, or the practice of buying multiple sizes of the same item with plans to return what doesn’t work. Beyond being a point of commerce, stores also support brand marketing and awareness.
Chernofsky described omnichannel shifts as a pendulum, as brands thought everything would migrate online, then pivoted after seeing the need for physical stores. However, retailers don’t need to be present everywhere for brick-and-mortar to work. Millennial-targeted brands may opt for suburban malls to meet that crowd, while those focused on Gen Z may still choose a flagship in a major city. One trend on the horizon is the creation of “urbanesque environments” in the suburbs. “It’s going to give retailers different opportunities to reach these audiences, even when, in the past, they would have been largely oriented toward major cities,” said Chernofsky.
In recent years, luxury and value players have fared well, with a clear point of view on their assignment and what customers are seeking from them. Meanwhile, the middle is struggling to deliver, since the game plan is more complex. Amid a crowded value-oriented field, there is a chance for companies to elevate slightly and succeed in the in-between. “While retail is clearly bifurcating, there is still a huge opportunity in the middle, if you can get that nuance correct,” Chernofsky said. He added, “The challenge is, you’re walking on a more complicated tightrope, but if you get it right, you have far less competition, which creates a massive advantage.”
This bifurcation of retail has been seen strongly in department stores, where retailers in the middle are challenged. Unlike mono-brand retailers, department stores are primarily selling other people’s products. Therefore, their position is tied to their assortment. “The brand is all about curation, and if your curation isn’t evolving, changing or delivering something very significant, that you’re falling behind in terms of what your promise is to the customer,” said Chernofsky.
