This spring, dollar stores like Dollar General, Dollar Tree, and Five Below saw significant sales increases as shoppers, including those with higher incomes, sought affordable prices amid rising tariffs. Despite high tariffs on imported goods, these chains managed to maintain low prices, attracting a diverse range of customers. Investment in store improvements, inventory management, and customer service contributed to their success. CEOs highlighted the importance of catering to both budget-conscious families and affluent shoppers during challenging economic times, which has helped strengthen customer loyalty and engagement.
"In the current environment, our low prices and smaller pack sizes are perfect for families trying to manage a tight household budget," Dollar Tree CEO Michael Creedon said.
Dollar General's delivery effort has helped bring in a "new and diverse" group of customers, CEO Todd Vasos said on his company's earnings call.
Rival Dollar Tree said it also saw more people with household incomes above $100,000 visit its stores during the quarter.
Discount stores typically see sales boosts in difficult economic times - and that certainly could be a factor here.
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