“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 at a retail conference Wednesday. Some of these customers first shopped at Dollar General earlier in the pandemic and have now returned, he added.
Dollar General has been a lifeline for lower-income shoppers, particularly in rural areas with few other retail options. The company says its “core customer” makes under $40,000 a year.
The trends at Dollar General show that inflation has impacted consumers’ shopping habits across multiple income levels, and it’s not the only company benefiting from the shift.
“We’re seeing a very value-oriented consumer at all demographic bands and income strata,” Best Buy CEO Corie Barry said on a call with reporters last week.
Dollar Tree CEO Mike Witynski last month said that the bulk of the chain’s new customers in the past year have an annual household income over $80,000.
High-income diners are also dropping pricier restaurants for budget-friendly chains like Applebee’s and IHOP.