Is the Age of Thrift Upon Us?

Dollar stores are winning more U.S. consumers as they seek to save money.

June 01, 2016

NEW YORK CITY – Getting a job or a raise isn’t compelling people to spend more money these days, which spells good news for dollar stores, The Street reports. U.S. consumers are continuing their thrifty mindset by watching their pennies. Dollar General had a 2.2% same-store sales bump during the year’s first quarter, with increases both in traffic and average amount spent per customer.

“In an environment where many retailers struggled, we delivered good performance,” said Dollar General CEO Todd Vasos during an analysts call. All of Dollar General’s customers aren’t seniors or food stamp recipients, either. “The millennial shopper is a segment that I was particularly excited to see emerge as a core consumer for Dollar General, as this segment is so important to the future of retail and Dollar General,” said Vasos, who pointed out that female millennials comprised around 12% of shoppers.

Dollar Tree has also seen first quarter earnings rise 25%, with same-store sales jumping 2.3% because of increased traffic and spending per shopper. “Dollar Tree continues to be part of the solution for millions of consumers as they work hard to balance their household budgets, and we serve a very loyal and growing customer base,” said Dollar Tree CEO Bob Sasser during an analysts call.

Dollar retailers have also done better than Walmart and Target this year so far. Walmart only had same-store sales advance 1%, while Target had same-store sales gain 1.2% for the first quarter of this year.

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