As Sears and Kmart stores close, where will their shoppers go?

Where will shoppers go if Sears and Kmart close?

For those of us interested in the retail space, foot traffic, or simply business in general, the closure of major retail stores like Sears and Kmart is a big deal. Both rank in the top 10 for visit share in the “Department Store” category. That’s a lot of visitation, so as their presence diminishes, other stores stand to gain considerable business. To get an idea of where that might be, we can use Placed Insights to examine two key visitation metrics: customer overlap* and customer affinity.**

Department Stores

While Sears and Kmart are not completely similar (Sears is a mall-based department store while Kmart is geared toward bargain shoppers), they do share a lot of visitation with two other major department stores. Among Sears, Kmart, JCPenney, and Kohl’s, we saw customer overlap between roughly 19-25% last quarter. It wouldn’t be surprising to see more shoppers turn to these stores after Sears and Kmart close.

Specialized Stores

More specialized stores may also see an increase in foot traffic. Sears is known for carrying a broad range of products including electronics, appliances, lingerie, and athletic shoes. Three distinct competitors with significant customer overlap or customer affinity with Sears includes Best Buy (27%), Victoria’s Secret (20%) and Finish Line, which has a 1.53 Customer Affinity index with Sears.

Discount Stores

Dollar-branded stores such as Dollar Tree and Dollar General both stand to gain Kmart foot traffic. Both are in the top 3 in terms of customer overlap, with 37% and 24% respectively. Discount retailers Five Below and Big Lots may also gain customers, as they have a Kmart Customer Affinity Index of 1.26 and 1.23 respectively.

*Customer overlap is the percentage of all visitors to one business (i.e. Sears) that also visited a second business (i.e. Kohl’s) in a given time frame.

**Affinity Index is the likelihood that a given population (i.e. Autozone shoppers) also visited another business (i.e. Whole Foods) in a given time frame, compared to the general U.S. population. For example: if Autozone shoppers have a Whole Foods Affinity Index of 1.50, it means Autozone shoppers are 50% more likely to visit Whole Foods in the given time frame than the general U.S. population.

Roadtrippers in the Know

Planning a road trip late in the season? Learn from summer road trips by looking at July Placed Insights for Automotive Services and Hotels.

 

Extreme Planners and Road Trips

Experienced roadtrippers make sure that their vehicles are in tip-top shape. They shop for tires before hitting the road, so they can wander without worry. And where do they rest? The most popular lodging for July tire shop visitors are Motel 6, Econo Lodge, and America’s Best Value Inn & Suites.

 

Extreme planners know how to find the shortest oil-change wait times — in July, Sundays and Wednesdays were the best days to visit Oil & Lube shops, with 20-30% less total visitation than Mondays, Tuesdays, and Fridays.

 

And don’t forget about grabbing snacks and fueling up — 7-Eleven had the highest July visit share in the Gas and Convenience Store category, followed closely by Shell.

 

More road trip highlights in the infographic below (click to enlarge).

 

Placed Insights July 2018 – Available Now!

 

Want to learn more about roadtrippers, or a different custom audience? Placed Insights is free and available online – to explore real-world foot traffic data for over 1,900 businesses.

Placed Insights – April 2018 Data Available

Spring has sprung, so it’s the time for house and garden projects! To get started, consumers are heading to their favorite home improvement stores. The momentum started with Spring Black Friday sales in mid-March and will continue through early summer. 

Popular Home Improvement Stores in April 2018

The Home Depot is the most popular home improvement store, followed closely by Lowe’s. Want to learn more about this category of stores, or The Home Depot specifically? Placed Insights is free and available online  – to explore real-world foot traffic data for over 1,900 businesses.