Gladys Kravitz checks to see if her neighbors have returned from the dollar store.
They must have; there are no cars parked in front of the store.
Photo by Retiring Guy
New York Times, 8/25/2022
Tellingly, both companies said on Thursday that higher-income shoppers were visiting their stores more frequently. The dollar-store business model — to attract consumers in rural areas and neighborhoods with fewer shopping options by offering prices that are lower than at local retailers — is designed to work even when its customers are hurting financially, as many are with inflation running stubbornly high.
In the past year, the majority of new customers at Dollar Tree had an annual household income of at least $80,000, Mike Witynski, the chain’s chief executive, said on a call with analysts. At its rival Dollar General, there was also growth in higher-income shoppers, which Todd Vasos, its chief executive, described as a push by more consumers to “seek value.”
Dollar General’s revenue rose 9 percent in the second quarter, versus the same period last year, to $9.4 billion, and its profit grew more than 6 percent. Dollar Tree’s revenue increased nearly 7 percent in the quarter, to $6.8 billion, and its profit jumped 27 percent.
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