Dollar Tree reports that 60% of its 3 million new shoppers in the third quarter of 2025 earn more than $100,000 annually. That’s up from 50% in the first quarter. This may highlight a shift that is not driven by financial distress. These households can afford traditional retailers, but they choose dollar stores anyway.
According to the report, those 3 million new shoppers came from all income brackets, but higher-income households made up a disproportionate share of the growth. Dollar General saw the same pattern. CEO Todd J. Vasos told investors there was “disproportionate growth coming from higher-income households” in the third quarter.
For households nationwide, the reason may be a strategic decision to save money with cheaper products that are no worse than their expensive counterparts.
What may make sense to buy at dollar stores
Focusing on categories where a cheaper version still performs the job well is a good move.
- Cleaning supplies: Items like generic bleach, spray bottles, scrub brushes, and basic cleaners often work as expected regardless of the store.
- Party supplies and gift wrap: Disposable items such as plates, napkins, balloons, and wrapping paper are used briefly and thrown away, so paying extra rarely adds meaningful value.
- Pantry staples: Spices, baking ingredients, and canned goods can offer strong value if shoppers check unit prices and expiration dates.
- Greeting cards: Cards at pharmacies and specialty stores can cost several dollars. Lower-priced versions usually serve the same purpose.
These are the areas where the savings are genuine and the trade-offs minimal.
What might be better to skip entirely
Smart shoppers also recognize when cheap items represent a false economy. In these categories, durability and consistency matter more than the initial price.
- Cheap electronics: Low-cost chargers, cables, and small devices often fail quickly, which increases long-term replacement costs.
- Low-cost batteries: Many inexpensive batteries drain faster, raising the cost per use even when the upfront price is low.
- Inexpensive tools: Poor-quality tools may bend, slip, or break under normal use, eliminating any savings and causing frustration.
- Vitamins and supplements: Quality and potency can vary widely. Many shoppers prefer established brands from retailers with stronger oversight.
- Skincare products: Cheaper formulations may contain harsh or ineffective ingredients, reducing value despite the low price.
These are situations where shoppers see that a slightly higher upfront cost delivers better performance or reliability.
What this shift may reflect
The observation that more high-income Americans are shopping at Dollar Tree and Dollar General does not in itself explain the reason.
Broader economic conditions, however, offer possible context. Prices for many everyday goods remain high, and cumulative inflation since 2020 has exceeded 20%, according to U.S. Bureau of Labor Statistics data. Household costs such as groceries and essential supplies have stayed elevated, and U.S. household debt reached $18.59 trillion in the third quarter of 2025, with credit card delinquencies at their highest level since 2011. Consumer sentiment has weakened throughout the year, and layoffs have surpassed 1.1 million.
In an environment where the cost of living remains challenging across income groups, more shoppers may be reconsidering where they buy routine items. The increase in higher-income customers at Dollar Tree may simply reflect a broader willingness to seek lower prices for goods that do not require premium versions during a time when many Americans, regardless of income, are paying closer attention to everyday costs.
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