Dollar Tree reaps the trade-down — and the upsell

Group 1 - Discount stores' performance can indicate economic trouble as budget-conscious consumers trade down to private-label goods and bargain shopping [1] - Walmart's strong quarter may signal challenges for working households, highlighting a dual trend where some consumers trade down while others pursue luxury [2] - Dollar Tree (DLTR) has seen an increase of 3 million additional households visiting its stores, with 60% of new customers earning at least $100,000 [5][6] Group 2 - Dollar Tree's expansion into wealthier neighborhoods reflects its ambition to attract a broader consumer base, including higher-income shoppers [6][7] - The company has increased its product prices to $1.25 and now offers items priced up to $7, moving beyond its traditional low-cost model [8] - Attracting higher-income shoppers just one additional visit per year could generate an extra $1 billion in annual sales for Dollar Tree [9]