money Inflation: Foot traffic at dollar stores is growing, study shows
Consumers are flocking to dollar stores amid the highest inflation since 1981.
Foot traffic to discount and dollar shops is above pre-pandemic levels as shoppers try to stretch their purchasing power, according to data compiled by Placer.ai.
Visits rose 13.2% during the second quarter of 2022 compared to the prior three months. Foot traffic in the second quarter was up 8% year-over-year, and up 20.5% compared to the same period in 2019.
Family Dollar saw foot traffic in Q2 rise 16.3% year-over-year. Five Below (FIVE) visits increased 10.2% during the same period, and Dollar General’s (DG) were up 8.5%. Dollar Tree's (DLTR) traffic rose 5.9% year-over year.
The pandemic has helped discount and dollar stores become a go-to destination for consumers. Weekly visits in the second quarter of 2022 were up relative to 2021, and significantly higher when compared to 2019 levels.
"The dramatic rise in Yo3Y weekly visits reveals the long-term advantage the pandemic gave the category. In the early days of COVID, dollar and discount stores were one of the few retail categories that remained open as essential businesses, which led many shoppers to discover the value priced one-stop-shops – and these shoppers have been coming back ever since," the Placer.ai report stated.
The study goes on to say many of these types of stores expanded their footprint in 2021 and continue to do so this year. This could help explain some of the added traffic. But average visits per venue grew between the 2nd quarter of 2022 and the same period last year.
Ines is a stock market reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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