Shoppers earning $100,000 are turning to dollar stores amid soaring inflation, Dollar General CEO says
Landon Speers for Insider
- Shoppers earning six-figure salaries are turning to dollar stores amid soaring inflation in the US.
- Economic uncertainty is pushing some Americans to tighten their pursestrings.
- Dollar General's "core customer" usually earns under $40,000 a year, CNN reported.
Shoppers with six-figure salaries are turning to Dollar General stores amid soaring inflation in the US, the discount store's CEO Todd Vasos said this week, per CNN.
Speaking at a retail conference on 7 September, Vasos said Dollar General stores had seen an influx of wealthy customers in recent months, CNN reported.
"The highest trade-in that we've seen and the most robust has actually been between the $75,000 and $100,000 group, Vasos said.
The company says its "core customers" usually earn under $40,000 a year, according to CNN.
Vasos added that some of these higher earners had previously been customers at the height of the pandemic and were now returning, CNN reported.
Dollar stores have generally experienced a revenue boost during times of economic uncertainty. During the COVID-19 pandemic, Dollar General's profits soared and even eclipsed its closest competitor, Dollar Tree, in May 2020.
In recent months, Dollar General has seen a revenue spike as higher prices and recession fears across the US have made some Americans more financially conscious.
Dollar General reported revenue of $9.4 billion in the second quarter of 2022, a 9% increase from the previous year.
Representatives for Dollar General did not immediately respond to Insider's request for further comment made outside normal working hours.
In recent years, the company has added more discretionary items, such as home furnishings and party supplies, to lure wealthier shoppers into Dollar General stores.
Other discount stores have seen a similar trend in recent months. Rival dollar store, Dollar Tree, said the majority of the store's new customers had salaries of $80,000 a year or more.
During a recent earnings call, Dollar Tree's CEO, Mike Witynski, said shoppers were "feeling pressured like they never have before," and were "relying on our stores to meet their budget goals."
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