A department store, several specialty chains and a few players in the grocery business are all making the Top 10 list just released by Placer.ai, the service that monitors store traffic and has a pretty good eye on the retail business.
“This report highlights 10 brands (in no particular order) that exhibit significant potential to grow in 2025,” Placer wrote, adding that it also cited three chains “that have faced some challenges in 2024 but appear poised to make a comeback in the year ahead.”
Included in the rankings are at least five stores that play in the fashion and home space:
- Nordstrom: “While the chain has certainly benefited from catering to a more affluent, and less price sensitive, consumer base, it still shines in fostering a shopping experience that stands out. Value might be a driver of retail visitation across the industry, but for Nordstrom, service and experience is paramount.” While mentioning Nordstrom Rack as a growth driver it also said the company’s go-private move this year should be a positive influence.
- Sam’s Club: “In a retail segment where the value of loyalty and owning ‘share of shopping list’ is at a premium, Sam’s Club is positioned for the type of success that builds a foundation for strength for years to come.” Placer said the club’s expansion of its assortment to appeal to more upscale shoppers has been a factor in its continued improvement.
- Barnes & Noble: “To the delight of book lovers everywhere, Barnes & Noble is back in force. With a presence in every single state and approximately 600 stores, location options are growing to browse bestsellers, chat with in-store bibliophiles, or grab a latte. Stores are feeling cozier and more local, with handwritten recommendations across the store. The chain’s extensive selection of gifts and toys mean that one can stop in for more than just books.” The chain could also assume the “third place” position increasingly being abandoned by Starbucks and others.
- Blue Mercury: “(Its) success lies in its ability to be a retailer, an expert and a spa service provider to its consumers. Placer data has shown that beauty chains with a service and retail component tend to attract more visitors than those who just specialize in retail offerings, and Bluemercury is no exception. Bluemercury’s bet on product expertise and knowledge combined with a smaller format store help to foster a strong connection between the beauty retailer and its consumers.” The chain’s upmarket position is also a strength.
- Ashley: “(The) recent strategy shift to differentiate itself through experiential events, such as live music, workshops and giveaways, is a compelling approach in the challenging consumer discretionary category. Post-pandemic, commercial property owners have successfully used community events to boost visit frequency, dwell time and trade area size for mall properties. It’s no surprise that retailers like Ashley are adopting similar strategies to engage customers and enhance their in-store experience.” Tie-ins with local designers also have been a strength.
Rounding out the Top 10 list were fast food chains Cava and Raising Cane’s Chicken Fingers, grocers Sprouts and H Mart and Life Time, the health and wellness fitness chain. Placer also listed three potential “surprises” for 2025, chains that might be seeing turnarounds ahead of schedule: Starbucks, Adidas and Gap.
The mix of brands on the list show there is no one-size-fits-all in retail, Placer wrote. “The diversity of brands featured in this report highlight the variety of categories and strategic initiatives that can drive retail and dining success in 2025.”