Amid the disappointing U.S. earnings news in Q2, one segment of the retail industry has reason to celebrate: dollar stores. Both Dollar Tree Inc. (which owns the Dollar Tree and Family Dollar chains) and Dollar General Corp. beat analysts’ expectations, and shares in both companies rose dramatically as a result.
That news had our Checkout TrackingSM team wondering just who was spending their dollars at these dollar stores. And as it turned out, the answer was . . . most everyone.
Even the wealthy have turned to the dollar retailers, reveals our Checkout Tracking data. In the last year, some 19 percent of spend at Dollar Tree, Dollar General, and Family Dollar came from households with an income in excess of $100,000 a year.
“All consumers today are clearly conscious of what they buy and where,” said Andy Mantis, executive vice president of Checkout Tracking, an NPD service that provides thorough information on consumer buying behavior based on receipts for both online and in-store purchases. “Considering that nearly 1 in 5 dollars spent there is contributed by the affluent, dollar stores’ value proposition clearly resonates across economic segments.”
It’s worth noting, however, that it is the decidedly less-than-well-to-do who purchase from dollar stores most frequently (twice as often as those with incomes of more than $100,000) and who have the highest spend per buyer.