Rising prices have caused consumers to shop more at dollar and discount stores to cut spending on essential items, reports The Wall Street Journal. The behavior comes at a time when energy costs are up 41.6 percent and grocery bills are 12.2 percent higher than last year. Families are also less likely to vacation or eat out at restaurants.
Research conducted by InMarket finds that the average spending on grocery products at discount stores increased 71 percent between October 2021 and June 2022. Over the same time period, spending on the same items at grocery stores decreased by five percent.
A San Antonio resident, Lily Penelope, who cannot drive due to a disability, told The Wall Street Journal that before January, $120 covered a round-trip Uber plus two weeks of fresh ingredients for them and their partner. Now the same trip costs almost double. This has forced them to shop almost exclusively at the local Dollar General.
“My health and the quality of my life has gone down,” Penelope said. “I’m in a position where I’m having to choose between making meals I can afford and putting my health on the line.”
Out of 18,000 Dollar General locations, only 2,300 stock fresh produce; however, the company plans to expand its fresh offerings to over 10,000 stores in the next several years.
Other consumers are relying more on Dollar Tree and its subsidiary, Family Dollar, to feed their families. Phoenix Kamlo, a tailor in Kansas said that he has been frequenting these stores to feed his family of five. A spokeswoman for the parent company said the chain aims to complement, not replace grocery stores. Full Story (Subscription Required)
Related: Dollar General Plans Three Distribution Centers; Shoppers Increasingly Choose Store Brands