Core Insights - Dollar Tree is experiencing increased sales driven by wealthier shoppers seeking bargains, with a notable 6.5% increase in same-store net sales in the second quarter [2][3] - The company’s CEO highlighted that 50% of new customers in Q1 came from the $100,000 income bracket, which increased to two-thirds in the latest quarter, indicating strong resonance with higher-income customers [3] - Despite the focus on higher-income shoppers, Dollar Tree continues to perform well with lower-income customers, who primarily purchase everyday essentials [4] Sales Performance - The second-quarter earnings report revealed a 6.5% increase in same-store net sales, attributed to a growing number of shoppers from the $100,000 income bracket [2] - The CEO noted that all income brackets are contributing to sales growth, with a significant portion of new customers coming from higher income levels [3] Customer Behavior - Higher-income customers are characterized as "thrill of the hunt" shoppers, targeting seasonal items and bargains, while lower-income customers focus on essential goods [4][5] - The $75,000 to $100,000 income bracket has historically indicated stability, but many in this group are now living paycheck to paycheck, reflecting a shift in financial security [5][6] Economic Context - A report indicated that over 70% of U.S. consumers live paycheck to paycheck, with middle-income households increasingly affected, highlighting a trend of financial fragility despite rising incomes [6][7] - This phenomenon is described as the "middle-class mirage," where rising incomes do not guarantee financial stability, leading to a more precarious economic situation for many [7]