Trump Tariff Fears Drive Affluent Americans to Dollar Stores

One-Dollar Shops See Surge in Middle- and High-Income Customers

Due to tariffs imposed by the Donald Trump administration, American consumers' willingness to spend has weakened, prompting even affluent individuals to flock to so-called "American Daiso" one-dollar shops.

According to the Financial Times (FT) on June 4 (local time), Dollar Tree and Dollar General reported an increase in middle- and high-income household customers in the first quarter of this year.

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Dollar Tree stated that it secured 2.6 million new customers in the first quarter, the majority of whom were high-income earners. Michael Creedon, CEO of Dollar Tree, said, "There has been a significant increase in customers with annual household incomes of $100,000 (approximately 136.17 million won) or more." He also noted that Dollar Tree is attracting customers from other retailers beyond traditional dollar stores.

Todd Vasos, CEO of Dollar General, said the previous day, "While our core customer base remains in a financially challenging situation, there is a growing trend among middle- and high-income customers to shift their spending to discount stores." He added that the proportion of affluent households switching to discount stores has reached its highest level in four years. Furthermore, he shared that, according to a recent customer survey, 25% reported a decrease in income compared to last year, and 60% of core customers said they feel they may need to forgo some essential goods next year.

Dollar Tree and Dollar Store, also known as one-dollar shops or dollar stores, sell a variety of household goods at low prices. Their primary customers have traditionally been working-class and low-income individuals. However, due to the burden of the Trump administration's tariff policies, middle- and high-income consumers are now also shopping at one-dollar shops.

Dollar Tree reported a first-quarter net sales increase of 11.3% to $4.6 billion, with net profit rising 14.4% to $343.4 million. Same-store sales grew by 5.4%. Dollar General posted first-quarter net sales of $10.4 billion and a net profit of $91.9 million, with same-store sales up 2.4%, exceeding expectations. FT noted, "The financial results of these dollar stores reflect changes in the U.S. retail industry."

This trend is also evident in the performance of major U.S. retailers. Walmart, which emphasizes low prices, reported sales growth across all income groups in its U.S. operations during the first quarter. Walmart recorded a first-quarter net profit of $4.45 billion, and same-store sales in the U.S. rose 4.8% year-on-year, surpassing market expectations. In contrast, Target, whose average customer income is higher than that of Walmart or dollar stores, saw its first-quarter sales decline by 2.8% year-on-year due to weakened consumer sentiment and concerns over tariffs. Same-store sales fell by 3.8%.

This content was produced with the assistance of AI translation services.