1、January 202310 Top Retail Brands toWatch in 2023This report draws on layers of geospatial,psychographic,and foottraffic data to reveal 10 retail brands with a winning strategy forthe coming year.The 2023 OpportunityThe past year was a tumultuous one for retail,as a post-pandemic shopping boost gavew

2、ay to historic inflation,rising gas prices,and the looming threat of a recession.At thesame time,the changing economic and consumer landscape is creating new opportunities and certain companies are particularly well-positioned to benefit from these shifts.This white paper takes a closer look at 10 b

3、rands to watch in 2023.Several of the chains areuncovering expansion potential in underserved markets with huge growth potential.Someare capitalizing on shifts in consumers preferences while others are doubling down onvalue pricing to appeal to bargain hunters.And while each company highlighted here

4、 isimplementing a slightly different approach,these 10 brands have one thing in common they all have a winning strategy for the coming year.Read on for some of 2023s retailwinners.Whataburger:Cult Classic Capturing Visits2022 was a big year for many regional QSR chains,with In-N-Out Burger,Culvers,a

5、nd CookOut all gaining visitation share in their respective markets.San Antonio,TX-basedWhataburger and its cult following appears particularly well-positioned to replicate itssuccess in 2023.The companys store openings are often characterized by long lines ofhungry customers,some of whom have waite

6、d for hours to try burgers.Recognizing thestrength of the brand,BDT Capital Partners purchased the chain in 2019 with the intentionof expanding Whataburgers footprint.Whataburger increased from 828 to 923 locations between 2019 to 2022,and foot traffic tothe chain skyrocketed accordingly.In the time

7、 period from January and November 2022,the company significantly outperformed 2019 October and November 2022 sawyear-over-three-year(Yo3Y)visit increases of 16.5%and 5.1%.Whataburgers Yo3Y visitsalso dramatically outperformed Yo3Y nationwide QSR traffic trends.2022 Placer Labs,Inc.|More insights at

8、placer.ai|2Whata-Late-Night-StopSome of Whataburgers traffic increase may be due to its opening hours.The chain isknown for staying open 24 hours a day,a significant draw at a time when more and morerestaurants shut their doors earlier in the evening.And location analytics indicates that anincreasin

9、g number of visitors are indeed taking advantage of this late night option.Between 2019 and 2022,the share of visits from 9 PM-12 AM grew from 18.1%to 21.3%asignificant increase in visits given the chains overall growth.Late-night visits grew as well,with the percentage of visits in the 12-3 AM time

10、 slot growing from 8.0%in 2019 to 10.9%in 2019.The combination of Whataburgers cult status,its new focus on expansion,and itslate-night hours in the context of a shifting dining landscape all bode well for the chainheading into 2023.2022 Placer Labs,Inc.|More insights at placer.ai|3Wawa:The C-Store

11、Darling of DiningConvenience store food is having a moment.Already in 2020,reports were noting thatconvenience stores were becoming Americas favorite restaurants and now,the categorymay even be taking market share from QSR locations.One convenience store particularly lauded for its food is Wawa,an E

12、ast Coast chain withlocations in seven states.And though the company has been on the top of the conveniencestore food chain for a while,with gourmet publications Food&Wine and Saveur extollingthe chains culinary offerings,the past few years have seen its popularity soaring.Not only has overall foot

13、traffic to Wawa increased in recent years,average visits per venuehave grown as well across all seven states.Wawa venues in New Jersey,Delaware,and D.C.,saw the largest increases,with 48.0%,42.2%,and 50.1%more visits,on average,than in2019,while the remaining states all saw average visit per venue g

14、rowth between 34.3%and41.2%.The strong performance may be incentivizing the chain to continue expanding:Wawa recently announced plans to open locations in four more states Tennessee,2022 Placer Labs,Inc.|More insights at placer.ai|4Indiana,Kentucky,and Ohio.According to Wawa CEO Chris Gheysen,the co

15、mpany plans tooperate 1,800 locations by 2030.Wawas Loyalty Driving ExpansionAside from having some of the most highly-regarded convenience store food in thecountry,Wawa also has seriously loyal customers,dubbed“Wawaholics.”One couple eventied the knot at the Wawa where they first met,while another

16、tattooed the companysname on his body.And,this loyalty has only been increasing compared to 2019.Between July and November2022,the share of loyal customers customers returning to a Wawa location more thantwice in a given time period increased by 4.5%when compared to the same period in2019.This juxta

17、position of strong loyalty,expansion plans,and food that is celebrated byfoodies and regular joes alike can help position the brand for success into the new year.2022 Placer Labs,Inc.|More insights at placer.ai|5Bobs Discount Furniture:Holding Onto Pandemic GainsThe home furnishing segment enjoyed a

18、 pandemic boost as people under work-from-home(WFH)mandates found themselves wanting to spruce up a home office or tackle a DIYproject.Since then,the majority of the home decor retailers have seen their visit patternsreturn to pre-pandemic levels.But some retailers such as Bobs Discount Furniture ap

19、pear to be holding ontopandemic gains.The brand offers both value-priced home goods and decor as well ascomplimentary coffee in all of its stores.October and November 2022s Yo3Y monthly foottraffic grew 27.6%and 13.4%,respectively,while overall home decor and furnishings visitsfell 16.1%and 22.2%in

20、the same period.2022 Placer Labs,Inc.|More insights at placer.ai|6Bobbing For DiscountsBobs Discount Furniture is also seeing a significant demographic shift within its tradeareas.The retailer saw an increase in the share of lower-value,owner-occupied housing(homes that are owned by the residents li

21、ving in them)between Q3 2019 and Q3 2022.According to 2019 U.S.Census data,the share of homes priced between$100,000 and$200,000 in Bobs trade areas increased from 18.5%in Q3 2019 to 22.4%in Q3 2022,andthe share of homes valued at under$100,000 increased from 9.0%to 11.2%in the sametime period.It is

22、 important to note that housing prices across the United States haveincreased significantly since 2019 when this data was collected but since the increase wasacross the board,the relative proportion of low-cost homes within the trade areas analyzedlikely remained steady,even if the actual value of t

23、he homes has grown.Embedding stores in areas with lower home values isnt holding the chain back instead,itmay even be helping the company grow more effectively.As home costs continue toincrease,would-be buyers in lower home-value areas may be opting to redecorate theirhomes instead of moving at leas

24、t until the market cools down a bit.2022 Placer Labs,Inc.|More insights at placer.ai|7Dave&Busters and Main Event Entertainment:Targetingthe Right AudienceThe young-at-heart are making their mark on the retail world.Adults drive a quarter of toysales,and Happy Meals for grown-ups have fueled foot tr

25、affic to McDonalds.Now,“eatertainment”the combination of dining and a fun activity is on the rise.And few arebetter positioned to benefit from this trend than Dave&Busters.The chain offers a mix ofarcade games,a full-service restaurant,and a bar,making it a natural choice for“kidults”looking for a c

26、ombination of dining and experience.In June 2022,Dave&Busters finalized the acquisition of rival Main Event Entertainment,which tends to cater to families complementing Dave&Busters young adult focus.Andlike Bobs Discount Furniture,the trade areas for Dave&Busters and Main EventEntertainment show al

27、ignment with each chains target audience.2022 Placer Labs,Inc.|More insights at placer.ai|8According to consumer lifestyle segmentation tool Experian:Mosaic,which providesin-depth insights into psychographic attributes for various target markets,Dave&Bustersand Main Event are located in trade areas

28、best suited to reach each brands intendedaudience.Dave&Busters trade areas have a higher percentages of“Significant Singles”and“Young City Solos,at 6.3%and 5.0%compared to Main Events 4.0%and 3.4%.Meanwhile,Main Event saw higher rates of“Flourishing Families”and“Promising Families”6.5%and 4.9%to Dav

29、e and Busters 5.6%and 3.4%,respectively.The pointed differences in trade area consumer profiles for both Dave&Busters and MainEvent indicates that the brands are choosing their venues strategically in a way that willhelp them effectively reach their target audiences.As more people seek out uniqueact

30、ivities,the companys ability to reach both families and singles through the two brandsshould continue to serve it well in the new year.Hibbett Sports:Rural Region ReachThe sporting goods space faced a challenging year as multiple headwinds commodity costinflation,supply-chain challenges and a rising

31、 consumer price index all came together to 2022 Placer Labs,Inc.|More insights at placer.ai|9increase costs and reduce retail foot traffic.But one chain Hibbett Sports has beenthriving despite these challenges.The Alabama-based retailer sells athletic wear,footwear,and sports apparel and has seen ye

32、ar-over-year(YoY)growth nearly all months in 2022.Limited Local Competition Driving VisitsMultiple factors contribute to the chains elevated foot traffic(a winning omnichannelstrategy helped)but its Hibbetts ability to target the right audience through itsbrick-and-mortar strategy that is helping to

33、 drive visit growth.The company focuses onopening stores in small and mid-sized markets that capitalize on the growth potential ofunderserved areas with little to no competition.For example,Hibbett and Dicks SportingGoods both have locations in Alabama but the trade areas of most Dicks stores tend t

34、ooverlap with the trade area of Hibbett stores,while the trade area of most of Hibbettsvenues do not overlap with Dicks.Hibbett has successfully placed its stores in locationswith limited direct competition a practice that helps it capture all local market share.And the chain is likely to continue t

35、o benefit from its unique offline reach,especially assports footwear giant Nike shifts away from wholesale in favor of its own DTC channels,2022 Placer Labs,Inc.|More insights at placer.ai|10while continuing to collaborate with Hibbett.This strong partnership and Hibbettssmall-market strategy should

36、 bode well for the brand into 2023.Five Below:Lightning-Pace GrowthWhile the sporting goods segment may have been held back in many ways by costincreases,the discount and dollar store segment is thriving.One that looks poised for ahighly successful 2023 is Five Below,a discounter that sells a majori

37、ty of items for$5 andunder,as well as a range of higher-priced products up to$25.Much of the chains appeallies in its position as the go-to discounter for tweens and teens who find that their pocketmoney can get them a treat from the chain.Five Below has been on a major growth streak recently,with m

38、onthly Yo3Y foot traffic upby double-digits for most of 2022.Some of this elevated foot traffic can be attributed to thechains impressive expansion,going from 900 stores at the end of fiscal 2019 to 1,190 atthe end of fiscal 2021.2022 Placer Labs,Inc.|More insights at placer.ai|11And while it took t

39、he chain 18 years to open its first 1,000 stores,Five Below is setting itssights on tripling its footprint by 2030.To that end,the company has set an ambitioustarget of opening another 1,000 stores by 2025.Five Belows Cross-Country ExpansionFive Below opened its first store and remains headquartered

40、 in Philadelphia,PA and muchof its expansion occurred on the East Coast.Since 2019,store openings have begun tomake their way west,with the company setting its sights on opening stores in 48 states by2025.Comparing a map of Five Below locations from 2019 to 2022 shows just how manyinroads are being

41、made in the Midwest and West,and the chain plans on continuing thattrend in the coming years.As the company expands both its retail footprint and technological capabilities,itsmomentum should continue to increase into the new year.2022 Placer Labs,Inc.|More insights at placer.ai|12Boot Barn:Flyover

42、State FashionLike several other companies on this list,Boot Barn a Western-focused shoe and apparelretailer has also been successful by expanding to underserved markets.The companywas established in Huntington Beach,CA in 1978 and has since grown to 321 stores with afocus on opening units in areas p

43、reviously considered to be“flyover states”by retailexecutives.Tapping into this market has turned out to be a winning strategy for Boot Barn,which hasseen impressive YoY foot traffic growth in recent months.The company found a large,diverse,and receptive audience in both its workwear and everyday op

44、tions.According todata pulled from STI:Popstats,the share of workers in farming,fishing,and forestry in BootBarns trade area exceeds the national average by 29 points,indicating that the company issuccessfully reaching a consumer segment often overlooked by other apparel retailers.AndBoot Barns appe

45、al to niche audiences isnt stopping the company from catering to thefashion-forward shopper especially as Western wear increases in popularity.2022 Placer Labs,Inc.|More insights at placer.ai|13Boot Barn has deftly managed to reach a wide market segment,from farm workers tofashionistas alike.As the

46、chain continues to grow into new markets,it seems poised for asuccessful 2023.Grocery Outlet Bargain Market:Surplus Savings at the TillGrocery Outlet Bargain Market(GOBM)launched in the 1940s as a San Francisco-basedmilitary surplus store,selling leftover shelf-stable canned rations.Today,the chain

47、getsmost of its products via“opportunistic buying,”working with brands with excess inventoriesor whose packaging changes force them to offload items at bargain-basement prices.Grocery Outlet Bargain Market then passes those savings to its customers,who find bothpantry staples and off-brand,experimen

48、tal products at lower prices.And in a period marked by rapidly rising food prices a Christmas dinner today costsaround 16.4%more than last year any savings are welcomed.Foot traffic to GOBMindicates just how receptive shoppers are to well-priced groceries in Q3 2022,the chainsaw 10.1%more visits and

49、 11.8%more visitors than in Q3 2021.Visits per venue were alsoelevated,with 4.3%more visits per venue in Q3 2022 than the same period in 2021.2022 Placer Labs,Inc.|More insights at placer.ai|14The chain has also been expanding GOBM has grown from 316 stores nationwide in 2019to 425 in 2022 and enter

50、ed the East Coast in 2021.The companys successful cross-countrygrowth proves that customers are willing to look beyond a popular brand when it comes tosavings at the till.And with the brand continuing to post impressive earnings and lean intoon-demand ordering,2023 is looking bright.Altard State:Sta

51、ndout Fashion OptionsAltard State is a Maryville,TN-based clothing retailer that is on the rise.The chain hasgrown to 128 locations across 39 states since it launched in 2009.While originallypositioned as a“modern Christian retail store,”the company has since evolved to a retailpowerhouse,with four

52、sister brands under its umbrella a plus-size option,bridal store,childrens clothing store and an activewear brand.Monthly foot traffic growth to Altard State stores nationwide shows how receptiveconsumers are to the brand,with Yo3Y monthly visits elevated for most of 2022.Foot trafficdid drop in Nov

53、ember,but it was a challenging month for most retailers and crucially,foot traffic does not capture online sales,which may have helped boost the brand.2022 Placer Labs,Inc.|More insights at placer.ai|15Cozy,Cheap,and ChicAltard State sees most of its success in the Southern and Midwestern states,wit

54、h itscozy-chic fashions popular among young,career-focused women.According to Spatial.aisPersonaLive Data,the share of young professionals shopping at Altard State is 13.6%,significantly higher than the nationwide average of 6.1%.Altard State also sees a significant portion of its customers coming f

55、rom higher-incomehouseholds,despite its affordable price point few clothing items on its website retail formore than$150.Residents of the trade areas of the top 10 Altard State locations havemedian household incomes(HHI)15%higher than the national average.And this number iseven higher in the South a

56、nd Midwest,where the median HHI is slightly lower than thenational average.The combination of strong visit trends and high-income clientele suggests the chain hasidentified a winning formula that is sure to carry over into the new year.2022 Placer Labs,Inc.|More insights at placer.ai|16Total Wine&Mo

57、re:Cornering the Midwest MarketTotal Wine&More is the countrys largest independently owned wine,beer,and spiritsretailer,with 235 stores across 27 states.The pandemic provided a boost to the chain asbars shuttered and home bars and ready-to-drink cocktails rose in popularity,and thecompany is contin

58、uing with expansion plans already set in 2019.Foot traffic trends indicate that the Total Wine&More is well positioned for future growth.The company has seen its nationwide visits skyrocket,with Yo3Y foot traffic up bydouble-digits for much of 2022,and average visits per venue have been elevated or

59、on parwith 2019 levels indicating that the expansion is meeting with a ready demand.2022 Placer Labs,Inc.|More insights at placer.ai|17Total Midwest ExpansionBut the real story emerges when looking at performance by region.Though all areasexperienced Yo3Y foot traffic growth between June and Novembe

60、r 2022,one regionoutperformed the others by significant margins.Visits to Total Wine&More in the Midwestgrew by a whopping 41.9%,driven partly by its expansion into states such as Michigan andIndianapolis.One reason the Midwest growth numbers are so high is that the region had the fewestTotal Wine&M

61、ore stores to begin with so every new location is likely to cause asignificant jump in visits.But the visit increases also indicate the strong demand for thistype of chain in an underserved market.Total Wine&Mores successful Midwesternexpansion indicates that the chain has successfully identified an

62、d is serving a receptiveregion.2022 Placer Labs,Inc.|More insights at placer.ai|18Promising Signs For The Year AheadBrick-and-mortar retailers faced a wide range of challenges in 2022 as a looming recessionand record inflation shook consumer confidence.Still,there are plenty of promising signsahead of the new year.These 10 brands prove that there are many untapped retailopportunities and creative ways to reach new and returning customers.And as consumersbegin to feel more optimistic about the economy,these brands seem poised to win in 2023.2022 Placer Labs,Inc.|More insights at placer.ai|19