Discount Stores Gaining More Ground in Paycheck-to-Paycheck Economy

It’s belt-tightening time, pretty much for everyone.

Soaring inflation, and higher prices pretty much everywhere — at the pump, in the aisles — mean that dollars simply do not go as far as they used to, or even as far as they went in 2021.

To that end, it may come as no surprise that many of us have opted to shop at discount stores to get what we need.

Source: PYMNTS.com

PYMNTS’ research, querying more than 2,100 individuals about their shopping habits, found that more than half — 56% — had shopped at a discount store in the past month (as measured in February).

As we can see in the graph at left, a significant number of consumers, too, have been visiting the discount stores even if they haven’t made a purchase, at 12%.  This data point implies that individuals and families are coming through the brick and mortar doors to see what’s on offer, and comparing prices.

It is the chart at right that signals just how firmly entrenched the pivot toward finding cheaper goods really is.  The stats show that more than half of all income groups — not just lower income individuals at less than $50K annually — have been shopping at discount stores.

This includes, perhaps surprisingly, those consumers who make more than $100,000 annually. And within this earnings group, a greater percentage — an additional 14% — are browsing the aisle, even if they are not making purchases.  Perhaps transacting may be a question of when, rather than if.

After all, research reported last week shows that a growing percentage of high-income individuals are living paycheck to paycheck.  Of the latest sample of individuals and their shopping habits as noted above, more than 42% say they live paycheck to paycheck, without difficulty paying their bills.  Slightly more than 21% say they live paycheck to paycheck with at least some difficulty paying their bills

Read Here: Nearly Half of Consumers Earning $100,000 a Year Live Paycheck to Paycheck

But even the discount stores are getting a bit pricier, albeit off a lower base.  Earlier this month, amid its earnings announcement, the parent company of the Dollar Tree and Family Dollar chain of discount stores said it is rolling out $3 and $5 product bundles in the coming months.

Read Here: Dollar Tree or Three? Discount Retailer Tinkers With $3 and $5 Price Points

We’ll know a bit more about the retail landscape, and in particular how discount firms are faring, when Dollar General reports results this week.  But it’s a fair bet that we’ll see further evidence that all consumers are becoming more price-conscious as their everyday shopping gets done.