What: Inflation has started to be visible in the US and reflects in a new channeling of the instore traffic.

Why it is important: There is a contraction of the market, as every class of customer is starting to worry about its spending power, even though luxury customers are less affected than middle-class. The winter season is going to be a stress test for many retailers inside and outside the US.

In the US, all companies are not affected in the same manner. Placer.ai has analysed the foot traffic and determined that the when it comes to mass retailers, Dillard’s has been the most affected in terms of traffic between June and September, compared with Kohl’s, Macy’s and Belk.

Nordstrom was also the most affected in the luxury market, and Saks Fifth Avenue was the only one which was able to grow its YoY traffic between June and September. Mid-range retailers are favored by customers while luxury stores keep the top end of their clientele, which is not that affected by financial woes. As a consequence, this impacts the foot traffic as only the core customers for each segment remain loyal.

In the US, Saks Fifth Avenue is the only department store growing its foot traffic