Target, Walmart and Costco reported low traffic numbers due to the coronavirus, raising questions about how long the slowdown will last.
What’s going on:
Here’s a breakdown of the traffic drop
- Walmart — down 6.7%
- Costco — down 8.7%
- Target — down 20.5%
The data comes from Placer.ai, which offers insight into foot traffic.
Ethan Chernofsky, vice president of marketing at Placer.ai, wrote in a company blog post: “There is a downside to stocking up for the long haul. Once you have all the things you need, there is little need for more visits. While some expected that the thrill of being able to get out could overcome a lowering demand for actual items, this may not be the case after all.”
Will things get better?
- Chernofsky said there is a positive to what’s happening: “The positive here is that the data indicates that as the situation improves, and doesn’t worsen, consumer behavior tends to return to more normal patterns.”
- “Should this trend hold, it’s a very strong endorsement for those who believe that wider retail activity could quickly return to previous levels should the preventative measures being enacted serve their ultimate goal.”