Dollar Stores Split As Value Shoppers Shift

Value-focused shoppers keep flocking to dollar stores, but the segment is splitting between winners and laggards.

• Five Below visits climbed 21.9% year over year last month, while Dollar Tree traffic fell 6.9% in April.
• 28% of Dollar General visits come from within one mile of the store.
• More than half of Dollar Tree’s recent customer growth came from shoppers earning over $100,000.

Value retail is fragmenting. Even higher-income shoppers are turning to dollar stores as consumer sentiment hit a record low of 48.2 in May and household debt reached $18.8 trillion. Chains are chasing those trade-down shoppers, with Dollar Tree converting 5,300 stores to a multi-price format.

Seller angle: Advertisers can capitalize on this trend by helping discount and dollar stores, and nearby convenience and grocery outlets, promote everyday-low-price deals and new value assortments to trade-down shoppers across income levels.

Conversation starter: “Even six-figure earners are shopping the dollar aisle now. Is your store speaking to value-seeking customers before the discounter down the road does?”

***Opportunity: Dollar Stores, Discount Retailers, Grocery Stores, Convenience Stores, Variety Stores