You can't be paranoid enough to imagine the disgusting amount of location data being slurped up by unscrupulous apps and traded for any purpose at all. Targeting ads based on having been near or in a store is completely standard.
https://blog.citizennet.com/how-to-measure-store-visits-on-f...
> By using location services on cell phones and 3rd party satellite imagery and mapping data, Facebook is able to tell you if someone visited your store within 28 days of clicking on your ad, all while filtering out employees or people who move past your stores without going in.
> Facebook can't measure all store visits. This is because some people don't have location services turned on in their phone, or are not recognizable by 3rd parties.
https://www.placeiq.com/audiences/
> Reach audiences who visit your location on a regular basis
> Reach audiences who regularly visit your competitor’s locations
> Message audiences who regularly commute past your location