Why shoppers making six figures are giving Dollar Tree a boost

Core Insights - Dollar Tree is experiencing a significant increase in customer traffic, with 3 million more households shopping at its stores compared to the same period last year [1] - Approximately 60% of new customers are higher-income households earning over $100,000, while 30% are middle-income households earning between $60,000 to $100,000 [2] - The trend of attracting higher-income shoppers is part of a broader consumer shift driven by inflation, with affluent households seeking to stretch their budgets [10] Customer Demographics - Higher-income households are increasingly shopping at Dollar Tree, indicating a shift in consumer behavior as they look for value [3] - Lower-income households are also relying more on Dollar Tree due to economic pressures, with their average spending growth outpacing that of higher-income households [5] - The average spending per visit for higher-income customers is currently lower, but there is potential for increased purchase frequency as they are still early in their relationship with the brand [8] Market Trends - The economic environment has led to a rise in shoppers from various income brackets, with companies like Dollar Tree, Dollar General, Walmart, and Aldi benefiting from this trend [10] - Dollar General has reported similar trends, with new customers shopping more often and spending more per visit compared to previous years [11] - Walmart has also noted an increase in high-income shoppers, with those earning over $100,000 accounting for approximately 75% of its share gains in the latest quarter [12]