With inflation that’s taking a long time to cool down (and which is continuing to affect food prices), it’s no surprise consumers are heading to discount stores for groceries. The latest (Jan. 2023) Coresight Research report indicated that one in five Americans buy their groceries at dollar stores.
See: Costco’s Best Deals? Employee Reveals 10 Standout Buys for Your Money
Find: With a Recession Looming, Make These 3 Retirement Moves To Stay On Track
Inflation rates regarding food have seen a 11.8% increase over the last 12 months, according to the consumer price index (CPI). Items such as eggs have seen a whopping 59.9% increase over the same time period. Additional food items that have seen huge increases over the past 12 months include butter, up 31.4%; margarine, up 43.8%; bread, up 15.9% and fresh vegetables, up 9.8%.
“If [Dollar General and Dollar Tree] continue to improve the quality of their fresh food while maintaining the low prices associated with their brands, there is a high chance it will bolster their value proposition with their existing consumer base and also pull in new customers from higher-priced retailers,” the Coresight report said, according to CNBC.
CNBC reported that to attract buyers, dollar stores — and specifically Dollar General and Dollar Tree — have expanded their footprints and their food offerings, including healthier products.
Additional stores, including Five Below and TJX, also announced more than 100 additional stores in 2022, according to The Wall Street Journal. High-income shoppers are also flocking to dollar stores as of late, as GOBankingRates previously reported.
Take Our Poll: What Are Your Financial Priorities in 2023?
Food Stamps: What Is the Maximum SNAP EBT Benefit for 2023?
For example, last August, Dollar Tree CEO Mike Witynski said that the majority of the chain’s new customers had an annual household income of more than $80,000, according to a transcript of an earnings call.
More From GOBankingRates