Despite rising consumer confidence, affluent shoppers are increasingly turning to dollar stores, signaling persistent cost sensitivity. Data shows dollar store traffic among higher-income households has grown 12% year-over-year, challenging traditional spending patterns.
- 12% year-over-year increase in dollar store visits from households earning over $100,000
- Dollar General’s same-store sales rose 9% YoY in Q3 2025
- Walmart (WMT) same-store sales up 1.3% YoY, Target (TGT) up 0.7%
- Dollar General stock up 18% YTD, outperforming WMT and TGT
- Persistent cost sensitivity among higher-income shoppers despite improved sentiment
- Shift toward hybrid shopping: value-driven purchases at dollar stores, essentials at mainstream retailers
Dollar retailers are witnessing a notable shift in shopper demographics, with higher-income consumers now representing a growing share of their customer base. Even as overall consumer sentiment has improved, with the University of Michigan’s index rising to 72.1 in November 2025, dollar store chains like Dollar General (DLR) report a 12% year-over-year increase in visits from households earning over $100,000 annually. This trend underscores a broader behavioral shift where economic caution persists despite macroeconomic improvements. The phenomenon is particularly evident in discretionary spending categories. Dollar General’s Q3 2025 earnings revealed a 9% year-over-year jump in same-store sales, with non-food items—such as apparel and home goods—driving growth. Meanwhile, Walmart (WMT) and Target (TGT), which have long dominated the discount and mid-tier retail space, are seeing slower same-store sales growth, with WMT posting a 1.3% increase and TGT reporting a 0.7% rise, both below analyst expectations. Analysts suggest that even affluent consumers are reevaluating spending habits, influenced by lingering inflationary pressure and elevated interest rates. While nominal incomes have risen, real purchasing power has remained constrained, leading wealthier households to adopt hybrid shopping strategies—relying on mainstream retailers for essentials but turning to dollar chains for value-driven, non-essential purchases. The shift has implications for retail strategy and market positioning. Dollar General’s stock has appreciated 18% year-to-date, outpacing both WMT and TGT, which have seen modest gains. Investors are interpreting the trend as a sign of sustained consumer prudence, potentially signaling that the Federal Reserve’s inflation fight may still be underway.