Dollar stores expected to see increased foot traffic into year-end
Justin Sullivan

Dollar stores are expected to see increased visits throughout the holiday shopping season as investors rein-in spending.

According to a new report from Placer.ai released Wednesday, increasing pressure on middle and low-income consumers is promoting a trade-down to discount stores. Indeed, a larger-than-expected rise in wholesale inflation data reported on Wednesday morning, with staple items running particularly hot.

According to Placer, these macroeconomic trends are likely to promote a âmore value-focused mindsetâ for consumers in coming months. 

âDollar stores are seeing lower-income consumers trade down from traditional superstores such as Walmart, while superstores are seeing middle-income consumers trade down from other channels,â Head of Analytical Research RJ Hottovy wrote on Wednesday. âThe impact of inflation will most likely continue into the holiday season, with consumers across the income spectrum looking for ways to save on gift and party shopping.â

Such a trend could bode well for names like Dollar Tree (NASDAQ:DLTR) and Dollar General (NYSE:DG). 

Lending credence to the expected uptick in visits, Dollar Tree (DLTR) announced that it âplans to hire thousands of associates for full- and part-time rolesâ during a hiring event on October 19 to deal with projected traffic. The planned hiring surge adds to value-oriented retailers conducting hiring pushes into the holiday season.
Dollar General (DG) was also selected by Citi as the top consumer stock most insulated from the impact of a strong dollar.