- Grocery stores are maintaining steady visit share and seeing increased foot traffic despite inflation and rising competition from discount and superstores.
- Shorter but more frequent shopping trips are becoming the norm, creating opportunities for optimized store layouts and grab-and-go sections.
- Fresh-format and value-focused grocery chains are capturing distinct market segments, with affluent shoppers gravitating toward health-focused stores and cost-conscious consumers preferring discount retailers.
- Smaller format grocery locations under 30K SF are outperforming larger stores, indicating a growing consumer preference for convenience and efficiency.
Steady In A Storm
Despite the challenges posed by persistent inflation, fluctuating consumer sentiment, and competition from discounters and big-box players, brick-and-mortar grocery stores are seeing resilient traffic patterns, reports GlobeSt.
Expansion, Not Cannibalization
The report highlights that overall grocery visit growth has outpaced visits per location since 2022. This trend suggests that the rise in traffic is fueled by chain expansion rather than cannibalization of existing store visits—an encouraging sign for operators continuing to invest in physical locations.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Quick Trips, Frequent Stops
Consumers are making shorter, more frequent grocery trips. Dwell times have declined since 2021 as shoppers avoid large baskets and instead cherry-pick deals across multiple retailers or supplement online orders with in-store visits. In response, retailers are encouraged to adapt by emphasizing grab-and-go offerings and more efficient store layouts.
Holding The Line
While discount and dollar stores, along with wholesale clubs, have gained ground over the past six years—often at the expense of giants like Walmart and Target—traditional grocery stores have held steady. Their visit share remained largely unchanged from Q1 2019 through Q1 2025.
A Market Divided
The grocery traffic is increasingly bifurcated. Fresh-format and ethnic grocers are seeing stronger engagement from higher-income shoppers, while discount chains attract price-sensitive consumers. These trends underscore the power of both health-oriented offerings and value pricing to drive loyalty in today’s fragmented market.
Work-From-Home Impact
Fresh-format grocers are benefiting disproportionately from remote workers, who account for more than 20% of traffic in that segment. These stores experience higher footfall midday, revealing an opportunity for operators to boost lunchtime options like salad bars and quick-serve counters.
Smaller Stores, Bigger Wins
Smaller format stores—those under 30K SF—are proving more effective at attracting shoppers, posting a 3.2% year-over-year increase in visits. This performance reinforces the idea that convenience often trumps scale in the current grocery retail environment.
Looking Ahead
As consumer preferences evolve, grocery retailers that deliver both value and quality through smart design and tailored offerings will stand out. Retailers that focus on targeted expansion strengthen their position to thrive in the changing retail landscape.
