Amidst economic turbulence and inflation, discount and dollar stores stand out as thriving segments post-pandemic. The performance observed in Q2 2023 sustained throughout the year’s latter half and into the holiday season, marked by expansions in chains like Dollar Tree, Five Below, and Ollie’s Bargain Outlet. Dollar Tree, despite claiming a significant visit share, showed impressive growth. Five Below and Ollie’s, with smaller footprints, displayed consistent year-over-year positive foot traffic. Dollar General maintained visit levels, signalling resilience despite heightened competition. Cross-shopping trends reveal Walmart as a primary competitor for all discount chains, while differences emerge in preferences for Target among shoppers. Variations in visit shares among chains relate to median household incomes in respective trade areas, showcasing distinct consumer patterns. The segment’s sustained success underscores the enduring appeal of budget-friendly retailers amid economic challenges.

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