The CEO of Dollar Tree believes tough times are driving sales at the discount giant — which operates both Dollar Tree and Family Dollar.
Reporting on the quarter that ended in February, CEO Michael Creedon noted a year-over-year increase in both foot traffic (0.7%) and average transaction (up 1.3%).
He said while lower-income and middle-income families continue to be the stores’ “bread and butter,” there’s been an uptick in business from higher-income households.
“It doesn’t matter how much money you make, everybody’s hurting right now,” Creedon said in an earnings call in late March.
While wages have kept pace with inflation, many consumers feel the pinch of rising costs and are changing their behavior — whether it’s shopping at discount stores more often or eating out less often.
McDonald’s CEO Chris Kempczinski reports a drop in sales at the fast-food juggernaut as higher prices force families to tighten their belts.
Read more: Trump warns his tariffs will spark a ‘disturbance’ in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP
With President Trump’s tariffs causing chaos in the stock market leading many economists to warn of additional price increases, Americans will have to tighten their belts even more..
You can follow the lead of the high-income shoppers that are turning to discount stores like Dollar Tree for some of their purchases.
Here are some additional cost-saving tips:
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Track your spending to eliminate unnecessary expenses.
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Use coupons, buy in bulk and plan meals around what’s on sale at the grocery store.
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Pay down debt and shore up your emergency fund to be better prepared for a recession or a round of layoffs.
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Consider setting up automated savings to have an extra cushion in your bank account for future price shocks.
What not to do? Don’t stop investing, even amid stock market chaos and even if the market sees further declines.
Economic downturns can be a good time to get into the market as shares of stocks and ETFs are relatively low. If you buy and hold stable investments like S&P 500 index funds, your investments are likely to perform well over time.