Placer: Tuesday Morning, CVS Show Traffic Pattern Promise

Tuesday Morning is working to build back traffic after store closures, reported, while CVS has made substantial visit gains at its locations.

After a difficult September when visits were down 24.6% year over year, weekly data from October shows signs of a Tuesday Morning revival, the traffic tracker stated. Visits for the weeks of October 5, October 12 and October 19 were down just 19%, 19.3% and 16.4% despite an ongoing effort to shutter 132 locations in an initial store closing drive. Tuesday Morning will eventually scale back from 687 to about 450 stores.

Tuesday Morning falls within two channels that have been flourishing during the pandemic, Placer pointed out, home goods and off-price. So, if the brand can take advantage of its positioning within the two sectors, it could be poised for a bounce back and perhaps rebound from Chapter 11 bankruptcy.

Placer pointed out that an analysis it conducted a few weeks ago determined that CVS was dominating other drug chains. Despite a slight dip in monthly year-over-year traffic in September compared to the previous month, weekly year-over-year data heading into October indicates strength.

Weekly visits have continued gaining momentum as the brand hovers around pre-COVID levels versus a year earlier. The week of September 28 generated traffic that was just 5.5% down, and, in the week of October 12, CVS enjoyed a store traffic spike to 1.2% above 2019 levels. Store visits slipped back a bit versus the year earlier for the following week, off by 0.3% from 2019, but the CVS trend toward traffic recovery could be benefiting from its addition of 1,000 new COVID-19 rapid result testing locations. With the recent resurgence in cases across the U.S., Placer suggested, a correlation between the spikes in traffic and the need for easy and immediate testing is likely to exist.