In recent months, dollar stores across the United States have reported a significant influx of higher-income shoppers, a trend that signals growing economic uncertainty and shifting consumer behavior.

According to a June 4, 2025, article from Yahoo Finance, this surge in wealthier customers at discount retailers like Dollar Tree and Dollar General is a troubling indicator for the broader US economy, as it suggests even affluent households are tightening their budgets in response to financial pressures.

Dollar store chains, traditionally known for catering to low-income consumers, are now seeing a notable increase in customers from higher income brackets.

Michael Creedon, CEO of Dollar Tree, told investors that higher-income customers, particularly those with household incomes exceeding $100,000, have been a “meaningful growth driver” for the company.

This demographic shift contributed to a 5.4% rise in same-store sales for Dollar Tree in the first quarter of 2025.

Similarly, Dollar General’s CEO, Todd Vasos, reported the highest percentage of “trade-in customers”—those who typically shop at higher-cost retailers—in the past four years, with significant activity from middle- and high-income consumers.

This trend is not entirely new. As early as 2022, dollar stores began noticing an uptick in higher-income shoppers, driven by inflation reaching 40-year highs.

During that period, Dollar Tree and Dollar General stocks surged, with Dollar Tree shares hitting a record in April 2022 and Dollar General peaking in November of the same year.

In 2025, year-to-date stock performance for both companies has outperformed the S&P 500, with Dollar General shares up 45% and Dollar Tree up 18%, compared to the S&P 500’s modest 1.8% gain.

The growing presence of higher-income shoppers at dollar stores is widely viewed as a warning sign for the US economy.

Historically, dollar stores thrive during economic downturns, as consumers across income levels seek value to stretch their budgets.

The Yahoo Finance article notes that both Dollar Tree and Dollar General tend to outperform when consumer spending weakens, a pattern evident during the 2008 recession and the inflationary peak of 2022.

The current influx of wealthier shoppers suggests that economic uncertainty, compounded by factors like tariff concerns and persistent inflation, is prompting even financially secure households to prioritize savings.

The article highlights that this shift is not limited to dollar stores. Retail giants like Walmart have also reported increased visits from higher-income shoppers, while competitors like Target have struggled, with shares down nearly 30% in 2025.

This divergence underscores a broader trend of cost-conscious behavior, even among those with greater financial resources.

Several factors are contributing to this shift in shopping habits. Economic uncertainty, fueled by proposed tariffs and inflationary pressures, has led households to seek out lower-cost alternatives.

Dollar General, for instance, has seen new customers shopping more frequently and spending more per visit, particularly on discretionary items, as they aim to maximize value.

Dollar Tree has also adapted its strategy to appeal to a broader income base by introducing multi-price point items, such as $3 and $5 products, to attract more affluent shoppers.

Additionally, global sourcing challenges, particularly from China, have impacted dollar stores’ inventory and pricing strategies.

Dollar Tree’s CEO emphasized the importance of global sourcing, noting a 10% inventory increase in the first quarter of 2025 due to expanded multi-price assortments.

However, Dollar General’s reliance on imports is relatively low, with less than 10% of its products directly sourced from China, mitigating some tariff-related concerns.