Of all the stores out there, dollar stores probably live up to their name better than any.
Not just because of their prices (though, honestly, they often substantially exceed $1), but also because they’ve gone on an absolute cash-printing tear.
In 2022, Dollar General and Dollar Tree commanded revenues of $37.8B and $28.3B, respectively.
Dollars and sense
As pandemic-era inflation drove grocery receipts through the roof, Americans pivoted their carts. For instance, grocery spending at discount chains jumped 71% between October 2021 and June 2022, per The Wall Street Journal, while other grocers saw sales dip 5%.
What’s particularly interesting is how this trend extends across demographics, especially among those for whom dollar store shopping is not a necessity.
- The share of dollar store visits among customers making $100k+ rose 4% this year, compared to the second half of 2022, per InMarket.
- Morning Consult found 45% of six-figure households are open to shopping at dollar stores, up from 39% last year.
(Saving) money talks
Part of the trend may be awareness. On TikTok, the hashtag #dollartree has 8B views, and the platform is full of frugal shopping tips centered around dollar stores.
Another part may be improved offerings and access — Dollar General is expanding its fresh-produce offerings, and discount grocery chain Aldi is adding 120 US stores this year, targeting higher-income areas.
For more: Read our in-depth visual explainer on the economics of dollar stores.
