America’s 15 Most Popular Stores
May 19, 2016NEW YORK -- 24/7 Wall St. has named the 15 most popular store chains in the United States using foot-traffic data from research firm Placed Inc. Not surprisingly, retailers and quick-service restaurants (QSRs) with thousands of locations gained advantage in the data, which included one traditional convenience-store brand and one gasoline brand among the top locations.
According to Placed founder and CEO David Shim, the popularity of these stores reflects the desire among American consumers to have choices. Since so many people are visiting so few places, this may seem counter-intuitive. But, he said, Americans seem to prefer clarity to volume. “People want to be able to choose ‘a’ vs. ‘b,’ but they don’t want to choose from ‘a,’ ‘b,’ ‘c,’ ‘d,’ ‘e’ and ‘f,’ ” he said.
Price also appears to be a factor in popularity, as more than half of the 15 most trafficked stores are either QSRs or discount retailers.
Seattle-based Placed monitors hundreds of thousands of American consumers on a monthly basis. To determine the nation’s most popular stores, 24/7 Wall St. reviewed data provided by Placed, which calculated the percentage of Americans 13 and older who visited stores in April 2016. It also reviewed U.S. sales and store-count data reported in recent company financial documents, as well as 2013 and 2014 advertising expenditure figures from Advertising Age.
15. 7-Eleven
Percent of consumers visiting in April: 15.1%
Number of U.S. stores: 7,800
Store category: Convenience stores
In a given month, 15.1% of American consumers visit a 7-Eleven, making the convenience store the 15th most popular store in the country. 7-Eleven claims to dominate the world’s branded 24-hour convenience stores with half the market share. The company is controlled by Tokyo-based Seven & i Holdings Ltd. Of the 7,800 7-Eleven U.S. locations, 6,400 are franchises.
14. Lowe’s
Percent of consumers visiting in April: 16.1%
Number of U.S. stores: 1,857
Store category: Home-improvement stores
Lowe’s is one of numerous hardware stores, lumberyards and garden centers included in the building material and garden equipment subsector. Hardware-related sales at the home-improvement giant, however, are a small share of its total market and total sales. In addition to hardware, Lowe’s sells a broad array of home-related goods.
13. Wendy’s
Percent of consumers visiting in April: 16.9%
Number of U.S. stores: 6,112
Store category: Restaurants
In a given month, 16.9% of American consumers go to a Wendy’s, including the restaurant’s drive-thru service. While the foot-traffic measurement only counts customers once, the popularity of restaurants is due largely to the high frequency of visits. Wendy’s advertising budget is large compared to most U.S. stores. The company spent $284.1 million on marketing in 2014, among the top 50 advertising spenders for that year.
12. Shell
Percent of consumers visiting in April: 18.0%
Number of stores: 43,000 (worldwide)
Store category: Major integrated oil and gas
The price of oil plummeted in the middle of 2014 and remained relatively low throughout 2015. As a result, Shell’s revenue, like those of other oil and gas companies, declined. This has not prevented American drivers from visiting gas stations, however. With 18% of Americans visiting a Shell station in a given month, the store is the 12th most popular nationwide. Most American adults own a vehicle and drive on a regular basis, and the high frequency of gas station visits helps Shell’s popularity. U.S. auto sales were at an all-time high at the end of 2015, and low gas prices have encouraged greater gas consumption in recent years.
11. The Home Depot
Percent of consumers visiting in April: 18.8%
Number of U.S. stores: 1,977
Store category: Home-improvement stores
The Home Depot’s financial success largely depends on the stability of the housing, residential construction and home-improvement markets. Based on Home Depot’s recent financial results, the housing market—or at least the home-improvement market—is in full swing. The home-improvement giant posted profits of more than $7 billion in its most recent fiscal year, up from $6.3 billion the previous year. Like most of the nation’s most popular stores, The Home Depot outspends most U.S. stores on advertising. The company spent $401.2 million on advertising in 2014, down by 11.5% from the previous year, but still the 30th largest advertising expenditure nationwide.
10. Dollar Tree
Percent of consumers visiting in April: 19.1%
Number of U.S. stores: 13,626
Store category: Variety stores
An estimated 19.1% of American consumers visit a Dollar Tree in a given month. Women make up 61.5% of those visitors, by far the most of any stores reviewed. The relatively gender-based popularity of Dollar Tree could suggest women are more value conscious. Or, since Dollar Tree products are frequently household staples, it suggests women perhaps more often shop for such items. Dollar Tree completed its acquisition of former rival Family Dollar on July 6, 2015. As a result, the company’s store count jumped from 5,367 in fiscal 2014 to 13,626 in fiscal 2015. Similarly, Dollar Tree’s 2015 net sales of $15.5 billion were 80% higher compared to its $8.6 billion in net sales the previous year.
9. Burger King
Percent of consumers visiting in April: 19.2%
Number of stores: 15,003 (worldwide)
Store category: Restaurants
In a given month, 19.2% of American consumers go to Burger King at least once, more than all but a handful of national chains. As is the case with many of the most popular stores in the country, Burger King spends a great deal on advertising. The company spent $237 million on marketing in 2014, which put it among the 75 biggest advertising spenders in the country.
8. Taco Bell
Percent of consumers visiting in April: 19.3%
Number of U.S. stores: 6,121
Store category: Restaurants
Along with Pizza Hut and KFC, Taco Bell is a subsidiary of Yum! Brands. Domestically, Taco Bell is the most popular division of the company, attracting 19.3% of American consumers in a given month. Taco Bell’s relative popularity may not be surprising considering its advertising budget. Yum! Brands spent $356.6 million on Taco Bell marketing in 2014, more than $100 million more than its marketing budgets for Pizza Hut or KFC the same year. Among all American companies, Taco Bell ranks 35th for its advertising spending.
7. CVS
Percent of consumers visiting in April: 23.4%
Number of U.S. stores: 9,655
Store category: Drug stores
In December 2015, CVS acquired the pharmacy and clinic division of Target. With Target an even more popular store than CVS, the pharmacy chain may see increased popularity in the future. Of the 9,655 CVS locations in the United States, 1,672 are located within a Target shopping center. While most CVS stores offer a wide range of products typically found at convenience stores, CVS locations in Target stores only sell prescription drugs and certain over-the-counter medication. In 2014, CVS became the first major franchise drug store to discontinue cigarette sales. While losing all of its tobacco customers in the process, the company sought to improve its popularity by promoting its focus on health.
6. Target
Percent of consumers visiting in April: 25.2%
Number of U.S. stores: 1,792
Store category: Variety stores
Target is one of the most frequented stores in the country. In a given month, slightly more than a quarter of American consumers visit a Target. The store’s popularity is partially attributable to its advertising budget. The company spent $667.9 million on advertising in fiscal 2015, enough to rank among the top advertising spenders in the country that year. With locations in every state in the country except for Vermont, many Americans have relatively easy access to a Target store. Many of the most popular stores in the country sell everyday products such as food. Target broadened its appeal in 1995 when it opened its first SuperTarget, a Target store that includes a grocery department. Today, the majority of Target locations also sell groceries.
5. Walgreens
Percent of consumers visiting in April: 30.3%
Number of U.S. stores: 8,309
Store category: Drug stores
A little more than 30% of all American consumers visit Walgreens in a given month. Only 23.4% of American consumers visited CVS, the second most popular drug store. Despite its wider customer base, Walgreens reported $76.4 billion in net sales in its fiscal 2014, considerably less than the $139.4 billion CVS reported in its fiscal 2014. This likely means CVS customers are spending more than Walgreens customers. CVS relies more on costly drug sales at its pharmacies than Walgreens. Walgreens has been closing stores in recent years. The company’s store count dropped by 273 locations between fiscal 2013 and fiscal 2014. The drug-store chain’s advertising budget, on the other hand, increased. The company spent $266.8 million on advertising in 2014, up from $239.4 million in 2013.
4. Starbucks
Percent of consumers visiting in April: 31.2%
Number of U.S. stores: 7,559
Store category: Specialty eateries
In a given month, 31.2% of all Americans visit Starbucks, a larger share than all but a handful of other businesses. Like other stores offering food, the high frequency of visits to Starbucks helps increase unique foot traffic. The company also markets itself as a community-gathering place, a venue for both meeting friends and conducting business. This may also further increase the frequency of visits. As of September 2015, there were more than 7,559 Starbucks locations in the United States.
3. Subway
Percent of consumers visiting in April: 34.0%
Number of U.S. stores: 26,960
Store category: Restaurants
Subway has 43,945 restaurants worldwide and 26,960 in the United States, more than any other restaurant. The sandwich chain’s popularity rose dramatically in the past several decades. Approximately 34% of Americans visit a Subway in a given month, trailing just two other stores for foot traffic. Amid the growing obesity epidemic, Subway has been able to attract increasingly health-conscious customers; however, due in part to rapid growth from competitors such as Chipotle Mexican Grill, Firehouse Subs and other build-your-own-meal fast-food chains, Subway sales have floundered in recent years. The sub shop, owned by holding company Doctor’s Associates, increased its advertising budget by 3.7% from $513.6 million in 2013 to $532.6 million in 2014—the 20th largest U.S. advertising expenditure of any company.
2. McDonald’s
Percent of consumers visiting in April: 49.8%
Number of U.S. stores: 14,259
Store category: Restaurants
Nearly half of American consumers visit McDonald’s in a given month, making the fast-food chain the most visited restaurant in the United States and the second most popular store in the country. Nationwide sales at the burger chain have declined in recent years, falling from $27.4 billion in 2014 to $25.4 billion in 2015. While foot traffic may have declined at the same time, McDonald’s rank has not changed for several years. McDonald’s spends more on advertising than any other store on this list and more than all but three other U.S. companies. The fast-food chain’s advertising budget was $935.1 million in 2014, down 4.2% from 2013, when the company spent $975.7 million.
1. Wal-Mart
Percent of consumers visiting in April: 52.8%
Number of U.S. stores: 4,574
Store category: Variety stores
A majority of American consumers visit a Wal-Mart in a given month. Wal-Mart is by far the largest retailer in the United States and the world. The retail giant reported net sales of $478.6 billion in 2015, down from $482.2 billion the year before but still larger revenue than the GDP of most countries. While foot traffic may have declined and will fluctuate over the course of the year, Wal-Mart’s position at the top of this list has been undisputed for many years. According to the company, nearly 260 million people visit its 11,500 worldwide stores every week. In the United States, no retailer is more popular. Wal-Mart is the only store where more than half of American consumers visit at least once in a given month.
More Chains
The Placed 100 Popular Businesses Based on Visitors list for April 2016 also includes other notable convenience-store, gas-station and related chains, including Dollar General (No. 18), Rite Aid (No. 19), Family Dollar (No. 24), BP (No. 34), Chevron (No. 39), Circle K (No. 67), Exxon (No. 70), Mobil (No. 82), Valero (No. 95) and Speedway (No. 97), along with many other QSRs.