- With inflation soaring in the US, shoppers earning six-figure salaries are turning to dollar stores.
- Economic uncertainty is causing some Americans to tighten their purse strings.
- Dollar General’s “core customers” typically make less than $40,000 a year, CNN reported.
Shoppers with six-figure salaries are turning to Dollar General stores as inflation soars in the United States, discount store CEO Todd Vasos told CNN this week.
Vassos said at a retail conference on Sept. 7 that Dollar General’s stores have seen an influx of high net worth customers in recent months, CNN reported.
“The highest and most consistent trade-ins we’ve seen were actually between the $75,000 and $100,000 groups.
According to CNN, the company said its “core customers” typically make less than $40,000 a year.
Vasos added that some of these high-income individuals were previously customers at the height of the pandemic but are now returning, CNN reported.
One-dollar stores generally saw higher revenue during times of economic uncertainty. During the COVID-19 pandemic, Dollar General’s profits soared, even surpassing its closest competitor, Dollar Tree, in May 2020.
Earnings at Dollar General have surged in recent months as rising prices and fears of a recession across the United States made some Americans more economically conscious.
Dollar General reported revenue of $9.4 billion in the second quarter of 2022. This is a 9% increase from the previous year.
A representative for Dollar General did not immediately respond to an insider’s request for comment outside of normal business hours.
In recent years, the company has added more discretionary items, such as home furnishings and party supplies, to lure wealthy shoppers to the Dollar General Store.
Other discount stores have seen similar trends in recent months. Rival dollar store Dollar Tree said most of its new customers make more than $80,000 a year.
On a recent earnings call, Dollar Tree CEO Mike Witynski said shoppers were “feeling pressure like never before” and were “relying on our stores to meet their budget goals.” ‘ said.