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Walmart<\/a> and Target<\/a> shoppers are no longer lingering between aisles, looking wistfully at a bag of chips before placing it back on the shelf. Consumers have their grocery shopping routines down pat, and it\u2019s a sign they\u2019ve been beaten down by inflation for over the past three years.<\/p>\n Visitor dwell time, or the time spent perusing aisles to check off every item off a grocery list, has decreased at Walmart and Target over the past year, according to an August report<\/a> from foot traffic data software firm Placer.ai. This suggests there\u2019s less mission-driven shopping taking place, and instead, consumers are frequenting individual retailers for select items and deals they know will be within their budgets, R.J. Hottovy, head of analytical research at Placer.ai, told Fortune.<\/em><\/p>\n \u201cThey probably know what they\u2019re looking for there,\u201d he said. \u201cThey\u2019re probably just looking for certain deals, and so they know what they want when they go in.\u201d<\/p>\n The trend reflects consumers\u2019 resignation toward their economic landscape. Navigating creeping inflation<\/a> since mid-2021, consumer appetite<\/a> for discretionary goods has waned, leaving them with greater intention to buy only the essentials. Looking to save money on basic goods, shoppers have traded down<\/a> over the past year, picking budget brands or choosing to frequent discount retailers like Walmart and Target. Over the past year, Hottovy said, consumers have cemented new habits. They know where to go to find deals, and they\u2019re doing so efficiently.<\/p>\n Costco<\/a> is a notable exception to this, having seen a steady\u2014and higher\u2014dwell time as discount retailers see drop-offs, according to Placer.ai\u2019s data. It\u2019s more of a function of the retailer\u2019s strategy to keep customers busy<\/a>: changing store layouts, offering samples, and promising a cheap meal in the form of a $1.50 hot dog<\/a> at the end of a long shopping excursion. It\u2019s a strategy that\u2019s worked for the big-box chain, which reported a 9.1% year-over-year increase<\/a> in revenue in May.<\/p>\n Lower dwell times don\u2019t correlate to loss of sales. Both Target and Walmart have jumped at the opportunity to lure cash-strapped shoppers, lowering prices<\/a> on thousands of items and launching private brands<\/a> that have appealed not only to those desperate for deals, but also higher-income customers looking to save. It\u2019s a strategy that worked<\/a>, partially responsible for Walmart\u2019s continued blockbuster earnings and Target\u2019s recent expectation-defying revenue<\/a>.<\/p>\n \u201cThese [consumers] are extremely price sensitive in this environment,\u201d Hottovy said. \u201cAnd if you can give them a better deal\u2014particularly if you make prices lower than they were a year ago\u2014consumers will definitely respond.\u201d<\/p>\n But while Walmart and Target have been rewarded for lowering prices, they\u2019re also beginning to see increased competition from dollar stores, which have continued to bring in middle- and lower-income consumers as superstores reap the benefits of wealthier consumers trading down, Hottovy said. Placer.ai found more Walmart, Target, and Costco shoppers also frequented Dollar Tree<\/a> over the past quarter compared to a year ago, a trend that has persisted from before the pandemic.<\/p>\n While dollar stores have struggled<\/a> in this period of economic uncertainty when lower-income shoppers bear the brunt of inflation, they\u2019ve also worked to appeal to those struggling consumers. Dollar General<\/a> added grocery products<\/a> to over 5,000 locations, attempting to nab sales from Walmart and Target, which have relied heavily on groceries to drive store traffic. Others are moving and opening new locations to increase footprint in areas with higher demand.<\/p>\n As consumer behaviors around shopping have both normalized and created opportunities for more retailers to woo them with deals and low-prices, both big-box chains and dollar stores have the chance to win big, Hottovy argued, even as inflation begins to cool.<\/p>\n \u201cI do think we\u2019re gonna see more competition between the channels,\u201d he said. \u201cBut there\u2019s enough population that\u2019s going to go to both channels right now.\u201d<\/p>\n<\/div>\n\nThe big winners<\/strong><\/h2>\n