Dollar Stores Feel the Pinch as Customers Across Incomes Spend Less During Inflation

During the pandemic, higher income customers started shopping more at dollar stores for deals. Now even dollar stores are struggling as customers spend less.
Shoppers are focusing spending on essentials like food rather than discretionary items like electronics.
Dollar store executives report financially constrained core low-income customers have depleted savings and are impacted by inflation.
Dollar stores attracted wealthier customers looking for value, but sales are slowing as those customers also cut back.
The changes at dollar stores indicate a worrying economic trend as even value retailers see cautionary spending.

businessinsider.com

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