Dollar Stores Cashing in Amid Inflation
June 8, 2022
Price-squeezed Americans are increasingly turning to discount stores, leading Dollar Tree and Dollar General to increase sales forecasts for the year.
Dollar General even plans to open 1,110 new stores during the 2022 fiscal year, while Dollar Tree is bolstering its supply chain to keep up with its own ambitious expansion plans, reported The Wall Street Journal.
However, considering the cold reception some municipalities give such discount retailers, what does their future hold? The Food Institute examines below.
Price Conscious Shoppers Turn to Discount Stores
Inflation has started to squeeze middle-income households as higher prices hit big-box stores.
According to a report by Numerator, middle-income consumers with a yearly income of $40,000 to $80,000 recently overtook low-income shoppers as the group most affected by rising grocery prices, reported MarketWatch.
The Numerator data showed that middle-income shoppers spend more than other income groups on groceries at big-box retailers and dollar stores such as Dollar General and Family Dollar.