Target Reports Strong Foot Traffic in 2023

Target Corp. is set to report its fourth-quarter results on Tuesday morning, showcasing a successful year in terms of foot traffic to its stores. According to data from analytics company Placer.ai, visits to Target during the fourth quarter of 2023 were up 1.6% year over year.

Consistent growth throughout the year

The data also revealed that foot traffic to Target stores increased from the previous year in every quarter of 2023. This growth trend was not unique to Target alone, as big-box retailers like Walmart, Costco, BJ's Wholesale Club, and Sam's Club also saw positive performance in the superstore and wholesale space throughout 2023.

Holiday peak and back-to-school surge

During the holiday season in December, all chains experienced a peak in monthly visits. However, Target stood out with a significant 33.9% increase in monthly visits compared to its 2023 average. This increase was more than double that of the other chains analyzed.

Additionally, Target saw exceptional growth in August, with a surge in visits from parents and students looking for back-to-school apparel and supplies. Placer.ai's Shira Petrack highlighted that Target's performance was driven by a strong connection with consumers during key shopping seasons.

Retail giants' foot traffic trends

In January 2024, visits to popular retail chain Target experienced a decline of 4.8% compared to the previous year, as reported by Placer.ai. Similarly, visits to BJ’s followed a comparable trend, with foot traffic seeing a 3.5% increase during the fourth quarter of 2023 but subsequently dropping by 2.1% in January. On the other hand, Costco witnessed a growth of 4.8% in visits during the fourth quarter of 2023, with January visits remaining high and rising by 2.1% year-over-year.

Recent Financial Performance

The retail giant Walmart recently reported an earnings beat for the fourth quarter, driven by better-than-expected U.S. same-store sales. This positive news resulted in a significant surge in the company's stock value.

BJ’s Wholesale Club is scheduled to announce its fourth-quarter results before the market opens on Thursday, with Costco set to report after the market closes that day.

Stock Performance Insights

Following these developments, Target shares closed Monday’s session with a 3.1% decrease. However, they have managed to gain an impressive 12.6% over the last three months, surpassing the S&P 500 index's gain of 12.3% during the same period. Meanwhile, BJ’s Wholesale Club's shares have seen a 9.4% increase in value over the last three months, and Costco's stock has surged by 26.7%.