Legacy retail brands stage comeback amid shifting consumer priorities

Traditional American retail brands are experiencing an unexpected renaissance in 2024, even as economic headwinds continue to reshape consumer behaviour. Market data from Placer.ai reveals a nuanced picture where heritage names are finding new relevance, particularly among millennial shoppers who once drove their initial success.

Anthropologie exemplifies this trend, with foot traffic now exceeding pre-pandemic levels. The brand's distinctive aesthetic has captured a loyal following among women aged 30-45, demonstrating that retailers can maintain pricing power while driving store visits - a crucial advantage in today's promotional environment.

Meanwhile, other stalwarts of American retail are mounting comebacks. Gap and Abercrombie & Fitch, which defined casual fashion in the 1990s and early 2000s, are showing signs of resurgence. Even Bed Bath & Beyond is attempting a return to physical retail through strategic partnerships.

However, this revival of legacy brands exists within a complex retail landscape. The discount sector, which has dominated recent years, appears to be reaching saturation. Dollar stores and discount retailers saw year-over-year foot traffic growth slow to just 0.8 percent in September 2024, suggesting a potential "return to the middle" in consumer preferences.

The conventional wisdom about convenience is also being challenged. Consumers are increasingly willing to make shorter, more frequent shopping trips and travel further for specialty items. Cross-visitation between chains has risen, with traditional shoppers making multiple visits to warehouse clubs like Costco.

Format innovation continues to drive growth. Macy's "Bold New Chapter" strategy, emphasising smaller, locally-targeted stores, has successfully increased weekday visits. The retailer's Bloomie's concept, featuring curated assortments and pop-up brands, represents a significant departure from traditional department store models.

As the retail sector navigates persistent inflation and changing consumer priorities, the success of legacy brands suggests that heritage and innovation can coexist. The key appears to be maintaining brand identity while adapting to new consumer expectations around value, convenience, and experience.