Dollar stores companies were some best performing stocks in the S&P 500 during the Great Recession, said Piper Sandler managing director Peter Keith. But over the past couple of years, dollar stores have not seen the, are under more pressure to stretch their dollars in the face of high inflation. These shoppers are therefore looking for more consumables — like foods and household items – rather than discretionary items, which are typically more profitable.
Middle-income and upper middle-income Americans are also not being forced to trade down to dollar stores as the job market has stayed In its fiscal 2024 second quarter earnings call, Dollar General said those customers are also more reliant on online storefronts, which dollar stores have had less success in rolling out.