Smiling young woman holding a long grocery receipt at supermarket.
Photo: iStock | cyano66

Last year as inflation reached its highest level in decades, upper-income households traded down to Dollar General, Dollar Tree, Aldi, and Five Below to save money. Since then, even as inflation has dropped to half of peak levels, affluent Americans are reportedly making discount shopping more of a regular routine.

Among households with six-figure incomes, 45% now shop at dollar stores, up from 39% one year ago, according to Morning Consult polling data reported by the Wall Street Journal.

Foot traffic is rising as well, with the share of dollar store shoppers who earn more than $100,000 rising 4% this year, compared with the second half of 2022, according to research firm InMarket.

On a podcast, WSJ personal finance reporter Rachel Wolfe said one reason is deep discounters opening locations closer to the suburbs. The stigma of walking into a discounter also continues to lessen with wealthy individuals seen increasingly enjoying discount’s treasure hunt experience, often bragging about finds.

Ms. Wolfe said on the podcast, “One of my sources was talking to me about how he sees lots of people driving Porsches, Mercedes, and BMWs in the parking lot of the Aldi by his house now. And he pointed out that no matter how much you make, you don’t want to spend $4 on an avocado when you can get one for 59 cents.”

Other factors increasing discount shopping’s appeal to wealthier customers include product upgrades — including expanded fresh produce sections at dollar stores — and “dollar store hauls” being highlighted on social media.

Even before the Great Recession, there have been reports of affluent Millennials saving money by purchasing everyday items at dollar stores while splurging on big-ticket items like cars and homes. Recent inflationary pressures are seemingly accelerating the trend.

Jeff Owen, Dollar General’s CEO, said on a recent quarterly call, “Customers in income brackets above our core customers are shopping with us at an increasing rate, underscoring our belief that our value and convenience proposition resonates with a broad spectrum of customers.”An article in Frozen & Refrigerated Buyer noted that more middle- and higher-income shoppers are also increasingly hitting their local Walmart due to food inflation and premium grocery offerings.

BrainTrust

“I’m not convinced that the market share gains are sustainable among the dollar stores, but cross-shopping in discounters is here to stay…”

Dick Seesel

Principal, Retailing In Focus LLC


Discussion Questions

Discussion questions: What’s driving higher-income consumers to apparently increase their visits to dollar stores and other discounters? Will affluent customers shift back toward shunning discount shopping as inflation further cools and the economy improves?

Poll

Is there still a strong stigma around shopping at dollar stores and other deep discounters or has it been largely eradicated?

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30 responses to “Has Discount Shopping Lost Its Stigma?”

  1. Mark Ryski Avatar
    Mark Ryski

    Everyone loves a bargain — even affluent shoppers. The historic inflation drove high income earners into discount stores, and the great deals and decent store experience keep them coming back. We shouldn’t be so surprised that affluent shoppers also want to get good deals on every day items. While some affluent shoppers may revert back to the pre-inflation behaviors, I expect that a good portion of these new discount shoppers are here to stay.

  2. Dick Seesel Avatar
    Dick Seesel

    The strength of dollar stores among high income customers may come as a surprise, but those shoppers’ visits to Target, Aldi, Walmart and others are longstanding habits. This has only been underlined by the inflationary pressures of the past two years.

    I’m not convinced that the market share gains are sustainable among the dollar stores, but cross-shopping in discounters is here to stay as the “moderate to better” retail tier continues to struggle.

  3. Ken Morris Avatar
    Ken Morris

    In a way, discount shopping and upscale shopping are meeting somewhere in the middle. This is both for price and selection. Everyone loves a discount, especially if the quality is there. There are specific items whose high prices don’t translate to quality like paper goods, cards, tape, seasonal decorations, cleaning products. Dollar stores opening in suburban locations gives the affluent buyer the opportunity to selectively shop. This doesn’t mean they aren’t also shopping at Whole Foods as well, but just spreading their purchasing power to a new set of players.

    I do think there used to be a stigma for “wealthy folks” about shopping at Walmart. Now that their online presence is significant, everyone shops there. And now all the deep discounters and dollar stores are seeing a similar trend.

    1. Richard Hernandez Avatar
      Richard Hernandez

      Ken,
      You are spot on.
      I was just discussing this last weekend with family. I think wealthy folks shopped at Walmart before, but now there is just more of an abundance of them that shop there on a more regular basis.

  4. John Lietsch Avatar
    John Lietsch

    I’m not convinced that this is a shift any more than I’m convinced Squishmallows is more than a passing fad. We know that higher incomes are more resilient to recessionary periods though I’m not sure that “low” six figures qualifies as “high” income in places like New York and California. Regardless, the article seems to say it all: “hauls being highlighted on social media,” “enjoying the treasure hunt experience and (more importantly), bragging about finds.” It would seem that the primary reason discounters are seeing increased visits are similar to the same reasons some people buy Porsches, Mercedes and BMWs; it’s an economic phenomenon called Keeping Up With The Joneses (or is it the Kardashians?). As with Squishmallows, enjoy the ride.

    1. Allison McCabe Avatar
      Allison McCabe

      Totally agree with you John. This is a conversational trend at a point in time. It too shall pass.

  5. Neil Saunders Avatar
    Neil Saunders

    Discount shopping started to lose its stigma quite a long time ago – sometime around the last major downturn during the financial crisis. At that point, there was a big uptick in the number of affluent consumers shopping at value chains. The trend has since been aided by discount players, such as Aldi, improving their stores and becoming more pleasant places to shop. Convenience also plays a major role: in rural areas, stores like Dollar General are local and quick to drive to. That makes them a destination for lots of shoppers.

  6. Jeff Sward Avatar
    Jeff Sward

    There was a stigma attached to shopping at discounters? I never thought of it that way. I like to splurge and I love a deal. But now I don’t have the ability or the propensity to splurge like I used to. Luxury businesses are healthy and discounters are going well. It’s the boring middle market that customers are now shunning. Where’s the value? Where is the emotional high? Where are the $$$ savings? People are being pragmatic about managing their budgets, while still leaving a little wiggle room for the emotional high of the occasional splurge.

  7. Melissa Minkow Avatar
    Melissa Minkow

    Dollar store and discount shopping has absolutely “mainstreamed” across income brackets. I don’t see this shifting back because many retailers are not sacrificing product quality to deliver better prices.

    1. Richard Hernandez Avatar
      Richard Hernandez

      This. More Dollar stores are moving away from dollar priced products and carrying more expensive products. I wonder if these will eventually be re-named?

  8. Lisa Goller Avatar
    Lisa Goller

    We’re seeing more luxury cars in Walmart parking lots, as consumers across all income levels seek superior value for money.

    As the economy improves, some shoppers will stay loyal to discounters. They’re more discerning about value perception and will refuse to habitually overpay for certain products.

  9. Georganne Bender Avatar
    Georganne Bender

    Social media has done a lot to bring down the discount store stigma. Facebook, Instagram and TikTok are full of videos showing shopping hauls from all the dollar-type stores, Target’s Dollar Spot, Big Lots, and Aldi’s addictive “Aisle of Shame”.

    I can remember when it was cool to shop at Target, but people of a certain income wouldn’t be caught dead in a Walmart. That’s changed; shopping at Target is still cool and now Walmart is too. Most of the products they sell aren’t exclusive so why not save a buck?

  10. Dave Wendland Avatar
    Dave Wendland

    Discount shopping has become a routine trip for many — regardless of income level. I personally do not believe that the pendulum will swing back the other direction. Discount options have proven both reliable and convenient, while delivering genuine value.

  11. Ryan Grogman Avatar
    Ryan Grogman

    The increase in quality of merchandise at many of these discount retailers plays a large part in attracting value-seeking shoppers of all income brackets. I think Amazon has also contributed to the notion that “more expensive isn’t necessarily better”, and many of the discount stores noted in the article are physical representations of some Amazon product lines which make sense.

  12. Patricia Vekich Waldron Avatar
    Patricia Vekich Waldron

    Nobody wants to overpay, especially for staples, regardless of income level.

  13. Brandon Rael Avatar
    Brandon Rael

    Conscious consumerism is an emerging force, partly attributed to the significant disruptions and chaos brought on during the post-pandemic, inflationary-driven economy. All consumers are always seeking a good deal, and the stigma or wrong perceptions of the off-price/discount retail segment are long gone.

    Off-price and discount shopping are no longer limited to one economic class. If you have spent any time outlet shopping, it’s abundantly clear that affluent consumers are searching for the next luxury product deal. Additionally, everyone could benefit by purchasing from discount off-price stores on home purchases, everyday items, and during key shopping seasons, such as back to school.

    Additionally, Walmart and Target’s supply chain and fulfillment capabilities are hard to compete with. Convenience plus value has changed the narrative significantly.

  14. Ian Percy Avatar
    Ian Percy

    “Would you like to pay less or more for the same product?” seems to be a very simple question to answer no matter how rich. My humble car lines up at Costco gas just like the ones I can only dream about.

    A few wandering thoughts…

    Is it just me or has anyone else found that the more you pay for clothing, for example, the more quickly it falls apart? The cost to quality ratio is something I’ve never really been confident about. I remember my old Jaguar days when I didn’t need a garage because it was usually at the dealer getting fixed.

    Or maybe what we’re willing to pay more for is creativity and uniqueness – which means we’re paying for talent. I hesitate to buy the shirt at Walmart because I’ll see five others wearing it on the way home.

    And how much of that $4 paid for the avocado goes to the guy who grew it and took all the risk?

    I’ve also never trusted the claim of “discount.” While typing this I got about five emails offering a “discount” on someting. Arguably, the price of something is made-up by those who figure out what the public will pay. Is the MSRP ever exagerated so it can be “discounted?” So I’m posing the idea that perhaps discount stores are among the most trustworthy retailers. I don’t recall seeing “up to 70% off” banners at the Dollar store.

  15. Richard J. George, Ph.D. Avatar
    Richard J. George, Ph.D.

    I have an expression: “Some people need to save money, but everyone likes to save money.” Inflation gave higher income shoppers permission to shop at discount/value retailers. Guess what? They liked the experience & the products purchased. No turning back.

  16. Georges F Mirza Avatar
    Georges F Mirza

    More and more high-income households shopping at dollar stores and other discounters. This trend seems to be driven by opening new locations closer to suburban areas, product upgrades, and social media influencers. Also, many affluent shoppers seem to enjoy the treasure hunt experience of finding great deals at discount stores. It remains to be seen whether this trend will reverse as inflation cools and the economy improves, but for now, it seems that even wealthy individuals are looking to save money on everyday items.

  17. John Karolefski Avatar
    John Karolefski

    It’ simple really. High inflation drove higher-income folks to dollar stores and other discounters. They liked the savings. As inflation eased, these folks still frequent discounters because they like saving money and don’t care what other people think.

  18. Craig Sundstrom Avatar
    Craig Sundstrom

    I’m not sure I’d use the word “stigma”, since – to me anyway – it implies the disapproval of others. For me the primary objections come from self: objection to cheap (i.e. low quality) merchandise, dingy locations and employees and/or customers that I don’t want to be around (for whatever reason).
    So the question becomes: have dollar stores rid themselves of those attributes? In many cases, yes…but not completely; just like WalMart.

  19. Gene Detroyer Avatar
    Gene Detroyer

    I have never shopped in a dollar store. Why? there has never been a dollar store close to several places I have lived.

    Maybe most of the answer to households with six-figure incomes, 45% now shop at dollar stores, up from 39% one year ago, is noted by WSJ personal finance reporter Rachel Wolfe said is deep discounters opening locations closer to the suburbs.

  20. Cathy Hotka Avatar
    Cathy Hotka

    My mother used to recoil in horror when I would brag that my Banana Republic blazer came from Goodwill. No longer. Lower-cost destinations like Shein are proving that customers still appreciate a great deal.

  21. Mark Schwans Avatar
    Mark Schwans

    Dollar stores provide convenient, fast, affordable shopping. They have good selection without being overwhelming; you can easily drive to them; the stores are in good condition; and they serve smaller communities that have first had their retail businesses and old downtowns destroyed. What’s not to like? Why would I pay $7.95 for a B-day card when I can get it for $1.25? Or $10 for batteries when I can get them for $1. My end of school year celebration with silly string? 20 cans for $20. So yeah. The service is fast, friendly, and affordable and beats many other retailer’s experiences who cut labor, killed their assortment, raised prices, and makes it really hard to find things in store, and are slow to get in and out of, especially when you are in a hurry.

  22. Brad Halverson Avatar
    Brad Halverson

    No one likes to leave money on the table, regardless of economic conditions, or affluence. Have seen dozens of retail grocery shopping studies in higher income trade areas repeatedly showing where getting deals is important, even in upscale stores.

    On the flip side, if grocers can prove and communicate value in quality with reasoning for the higher price (grown fresh, made with better ingredients, etc), shoppers also respond to those stores with increased sales.

    The key is, what is the grocery brand promise communicating? And is it communicating well?

  23. David Naumann Avatar
    David Naumann

    For several years now, there has been a continued increase in the number of affluent consumers shopping at discount stores. As more of their peer group admit they shop at discount stores, citing the quality and value, it continues to erode the stigma of shopping at these discount and dollar stores.

  24. Roland Gossage Avatar
    Roland Gossage

    Ultimately customers seek value from every shopping experience, online or in store. Amidst the current economy and high inflation, this means many consumers – even those from a higher income bracket – see value in shopping at budget and discount stores, helping to stretch their spending budgets and make the most of their disposable income. Though some will likely shift away from these shopping habits once inflation cools, this is an opportunity for these stores to gain some potential market share by creating customer loyalty. If high-income customers feel that discount stores provide a convenient and relevant shopping experience, they’re more likely to remain customers long-term.

  25. Anil Patel Avatar
    Anil Patel

    In my opinion, there might be some affluent customers who have set their priorities on saving on dispensable items by going to dollar stores. However, this doesn’t reflect a trend in any way. Customers follow a lifestyle choice, if a dollar store like “Aldi” is a part of that lifestyle then customers will continue to buy from that store, not because of any economic standpoint. Evidently, plenty of discount stores have been opened in different localities which gives easy access to buy dispensable items.

    The shopping habits of customers have changed significantly as nowadays they prefer buying only what they need at the moment and this is why dollar stores are becoming popular. Dollar stores are not inexpensive, but they do offer single-item purchases, which is more convenient for customers than shopping from big stores, where things are normally available in bulk or in a bundle.

  26. Huseyn Abdulla, Ph.D. Avatar
    Huseyn Abdulla, Ph.D.

    The key concept that would explain this trend is value, that is, quality/price. I think the value-seeking attitude has grown significantly among affluent shoppers. I anticipate we will see more of this attitude in the future among affluent shoppers of the Generation Z, given their Internet savviness and ability to use different platforms to reduce information asymmetry and identify best deals.

  27. Lindsey Peters Avatar
    Lindsey Peters

    There’s absolutely less of a stigma around discount/thrift shopping today than there was ten, or even five years ago. For example, in recent years, recommerce has exploded. Recommerce, the online selling of previously owned items to buyers who reuse, recycle or resell them, is growing 11 times faster than traditional retail and is expected to reach $84 billion by 2030. Affluent consumers are prioritizing sustainability initiatives, putting their money where their beliefs are, and the retailers that are winning are the retailers that are taking notice.

30 Comments
oldest
newest
Mark Ryski
Mark Ryski
1 month ago

Everyone loves a bargain — even affluent shoppers. The historic inflation drove high income earners into discount stores, and the great deals and decent store experience keep them coming back. We shouldn’t be so surprised that affluent shoppers also want to get good deals on every day items. While some affluent shoppers may revert back to the pre-inflation behaviors, I expect that a good portion of these new discount shoppers are here to stay.

Dick Seesel
Dick Seesel
1 month ago

The strength of dollar stores among high income customers may come as a surprise, but those shoppers’ visits to Target, Aldi, Walmart and others are longstanding habits. This has only been underlined by the inflationary pressures of the past two years.

I’m not convinced that the market share gains are sustainable among the dollar stores, but cross-shopping in discounters is here to stay as the “moderate to better” retail tier continues to struggle.

Ken Morris
Ken Morris
1 month ago

In a way, discount shopping and upscale shopping are meeting somewhere in the middle. This is both for price and selection. Everyone loves a discount, especially if the quality is there. There are specific items whose high prices don’t translate to quality like paper goods, cards, tape, seasonal decorations, cleaning products. Dollar stores opening in suburban locations gives the affluent buyer the opportunity to selectively shop. This doesn’t mean they aren’t also shopping at Whole Foods as well, but just spreading their purchasing power to a new set of players.

I do think there used to be a stigma for “wealthy folks” about shopping at Walmart. Now that their online presence is significant, everyone shops there. And now all the deep discounters and dollar stores are seeing a similar trend.

Richard Hernandez
Richard Hernandez
  Ken Morris
1 month ago

Ken,
You are spot on.
I was just discussing this last weekend with family. I think wealthy folks shopped at Walmart before, but now there is just more of an abundance of them that shop there on a more regular basis.

John Lietsch
John Lietsch
1 month ago

I’m not convinced that this is a shift any more than I’m convinced Squishmallows is more than a passing fad. We know that higher incomes are more resilient to recessionary periods though I’m not sure that “low” six figures qualifies as “high” income in places like New York and California. Regardless, the article seems to say it all: “hauls being highlighted on social media,” “enjoying the treasure hunt experience and (more importantly), bragging about finds.” It would seem that the primary reason discounters are seeing increased visits are similar to the same reasons some people buy Porsches, Mercedes and BMWs; it’s an economic phenomenon called Keeping Up With The Joneses (or is it the Kardashians?). As with Squishmallows, enjoy the ride.

Allison McCabe
Allison McCabe
  John Lietsch
1 month ago

Totally agree with you John. This is a conversational trend at a point in time. It too shall pass.

Neil Saunders
Neil Saunders
1 month ago

Discount shopping started to lose its stigma quite a long time ago – sometime around the last major downturn during the financial crisis. At that point, there was a big uptick in the number of affluent consumers shopping at value chains. The trend has since been aided by discount players, such as Aldi, improving their stores and becoming more pleasant places to shop. Convenience also plays a major role: in rural areas, stores like Dollar General are local and quick to drive to. That makes them a destination for lots of shoppers.

Jeff Sward
Jeff Sward
1 month ago

There was a stigma attached to shopping at discounters? I never thought of it that way. I like to splurge and I love a deal. But now I don’t have the ability or the propensity to splurge like I used to. Luxury businesses are healthy and discounters are going well. It’s the boring middle market that customers are now shunning. Where’s the value? Where is the emotional high? Where are the $$$ savings? People are being pragmatic about managing their budgets, while still leaving a little wiggle room for the emotional high of the occasional splurge.

Melissa Minkow
Melissa Minkow
1 month ago

Dollar store and discount shopping has absolutely “mainstreamed” across income brackets. I don’t see this shifting back because many retailers are not sacrificing product quality to deliver better prices.

Richard Hernandez
Richard Hernandez
  Melissa Minkow
1 month ago

This. More Dollar stores are moving away from dollar priced products and carrying more expensive products. I wonder if these will eventually be re-named?

Lisa Goller
Lisa Goller
1 month ago

We’re seeing more luxury cars in Walmart parking lots, as consumers across all income levels seek superior value for money.

As the economy improves, some shoppers will stay loyal to discounters. They’re more discerning about value perception and will refuse to habitually overpay for certain products.

Georganne Bender
Georganne Bender
1 month ago

Social media has done a lot to bring down the discount store stigma. Facebook, Instagram and TikTok are full of videos showing shopping hauls from all the dollar-type stores, Target’s Dollar Spot, Big Lots, and Aldi’s addictive “Aisle of Shame”.

I can remember when it was cool to shop at Target, but people of a certain income wouldn’t be caught dead in a Walmart. That’s changed; shopping at Target is still cool and now Walmart is too. Most of the products they sell aren’t exclusive so why not save a buck?

Dave Wendland
Dave Wendland
1 month ago

Discount shopping has become a routine trip for many — regardless of income level. I personally do not believe that the pendulum will swing back the other direction. Discount options have proven both reliable and convenient, while delivering genuine value.

Ryan Grogman
Ryan Grogman
1 month ago

The increase in quality of merchandise at many of these discount retailers plays a large part in attracting value-seeking shoppers of all income brackets. I think Amazon has also contributed to the notion that “more expensive isn’t necessarily better”, and many of the discount stores noted in the article are physical representations of some Amazon product lines which make sense.

Patricia Vekich Waldron
Patricia Vekich Waldron
1 month ago

Nobody wants to overpay, especially for staples, regardless of income level.

Brandon Rael
Brandon Rael
1 month ago

Conscious consumerism is an emerging force, partly attributed to the significant disruptions and chaos brought on during the post-pandemic, inflationary-driven economy. All consumers are always seeking a good deal, and the stigma or wrong perceptions of the off-price/discount retail segment are long gone.

Off-price and discount shopping are no longer limited to one economic class. If you have spent any time outlet shopping, it’s abundantly clear that affluent consumers are searching for the next luxury product deal. Additionally, everyone could benefit by purchasing from discount off-price stores on home purchases, everyday items, and during key shopping seasons, such as back to school.

Additionally, Walmart and Target’s supply chain and fulfillment capabilities are hard to compete with. Convenience plus value has changed the narrative significantly.

Ian Percy
Ian Percy
1 month ago

“Would you like to pay less or more for the same product?” seems to be a very simple question to answer no matter how rich. My humble car lines up at Costco gas just like the ones I can only dream about.

A few wandering thoughts…

Is it just me or has anyone else found that the more you pay for clothing, for example, the more quickly it falls apart? The cost to quality ratio is something I’ve never really been confident about. I remember my old Jaguar days when I didn’t need a garage because it was usually at the dealer getting fixed.

Or maybe what we’re willing to pay more for is creativity and uniqueness – which means we’re paying for talent. I hesitate to buy the shirt at Walmart because I’ll see five others wearing it on the way home.

And how much of that $4 paid for the avocado goes to the guy who grew it and took all the risk?

I’ve also never trusted the claim of “discount.” While typing this I got about five emails offering a “discount” on someting. Arguably, the price of something is made-up by those who figure out what the public will pay. Is the MSRP ever exagerated so it can be “discounted?” So I’m posing the idea that perhaps discount stores are among the most trustworthy retailers. I don’t recall seeing “up to 70% off” banners at the Dollar store.

Richard J. George, Ph.D.
Richard J. George, Ph.D.
1 month ago

I have an expression: “Some people need to save money, but everyone likes to save money.” Inflation gave higher income shoppers permission to shop at discount/value retailers. Guess what? They liked the experience & the products purchased. No turning back.

Georges F Mirza
Georges F Mirza
1 month ago

More and more high-income households shopping at dollar stores and other discounters. This trend seems to be driven by opening new locations closer to suburban areas, product upgrades, and social media influencers. Also, many affluent shoppers seem to enjoy the treasure hunt experience of finding great deals at discount stores. It remains to be seen whether this trend will reverse as inflation cools and the economy improves, but for now, it seems that even wealthy individuals are looking to save money on everyday items.

John Karolefski
John Karolefski
1 month ago

It’ simple really. High inflation drove higher-income folks to dollar stores and other discounters. They liked the savings. As inflation eased, these folks still frequent discounters because they like saving money and don’t care what other people think.

Craig Sundstrom
Craig Sundstrom
1 month ago

I’m not sure I’d use the word “stigma”, since – to me anyway – it implies the disapproval of others. For me the primary objections come from self: objection to cheap (i.e. low quality) merchandise, dingy locations and employees and/or customers that I don’t want to be around (for whatever reason).
So the question becomes: have dollar stores rid themselves of those attributes? In many cases, yes…but not completely; just like WalMart.

Gene Detroyer
Gene Detroyer
1 month ago

I have never shopped in a dollar store. Why? there has never been a dollar store close to several places I have lived.

Maybe most of the answer to households with six-figure incomes, 45% now shop at dollar stores, up from 39% one year ago, is noted by WSJ personal finance reporter Rachel Wolfe said is deep discounters opening locations closer to the suburbs.

Cathy Hotka
Cathy Hotka
1 month ago

My mother used to recoil in horror when I would brag that my Banana Republic blazer came from Goodwill. No longer. Lower-cost destinations like Shein are proving that customers still appreciate a great deal.

Mark Schwans
Mark Schwans
1 month ago

Dollar stores provide convenient, fast, affordable shopping. They have good selection without being overwhelming; you can easily drive to them; the stores are in good condition; and they serve smaller communities that have first had their retail businesses and old downtowns destroyed. What’s not to like? Why would I pay $7.95 for a B-day card when I can get it for $1.25? Or $10 for batteries when I can get them for $1. My end of school year celebration with silly string? 20 cans for $20. So yeah. The service is fast, friendly, and affordable and beats many other retailer’s experiences who cut labor, killed their assortment, raised prices, and makes it really hard to find things in store, and are slow to get in and out of, especially when you are in a hurry.

Brad Halverson
Brad Halverson
1 month ago

No one likes to leave money on the table, regardless of economic conditions, or affluence. Have seen dozens of retail grocery shopping studies in higher income trade areas repeatedly showing where getting deals is important, even in upscale stores.

On the flip side, if grocers can prove and communicate value in quality with reasoning for the higher price (grown fresh, made with better ingredients, etc), shoppers also respond to those stores with increased sales.

The key is, what is the grocery brand promise communicating? And is it communicating well?

David Naumann
David Naumann
30 days ago

For several years now, there has been a continued increase in the number of affluent consumers shopping at discount stores. As more of their peer group admit they shop at discount stores, citing the quality and value, it continues to erode the stigma of shopping at these discount and dollar stores.

Roland Gossage
Roland Gossage
30 days ago

Ultimately customers seek value from every shopping experience, online or in store. Amidst the current economy and high inflation, this means many consumers – even those from a higher income bracket – see value in shopping at budget and discount stores, helping to stretch their spending budgets and make the most of their disposable income. Though some will likely shift away from these shopping habits once inflation cools, this is an opportunity for these stores to gain some potential market share by creating customer loyalty. If high-income customers feel that discount stores provide a convenient and relevant shopping experience, they’re more likely to remain customers long-term.

Anil Patel
Anil Patel
29 days ago

In my opinion, there might be some affluent customers who have set their priorities on saving on dispensable items by going to dollar stores. However, this doesn’t reflect a trend in any way. Customers follow a lifestyle choice, if a dollar store like “Aldi” is a part of that lifestyle then customers will continue to buy from that store, not because of any economic standpoint. Evidently, plenty of discount stores have been opened in different localities which gives easy access to buy dispensable items.

The shopping habits of customers have changed significantly as nowadays they prefer buying only what they need at the moment and this is why dollar stores are becoming popular. Dollar stores are not inexpensive, but they do offer single-item purchases, which is more convenient for customers than shopping from big stores, where things are normally available in bulk or in a bundle.

Huseyn Abdulla, Ph.D.
Huseyn Abdulla, Ph.D.
29 days ago

The key concept that would explain this trend is value, that is, quality/price. I think the value-seeking attitude has grown significantly among affluent shoppers. I anticipate we will see more of this attitude in the future among affluent shoppers of the Generation Z, given their Internet savviness and ability to use different platforms to reduce information asymmetry and identify best deals.

Lindsey Peters
Lindsey Peters
27 days ago

There’s absolutely less of a stigma around discount/thrift shopping today than there was ten, or even five years ago. For example, in recent years, recommerce has exploded. Recommerce, the online selling of previously owned items to buyers who reuse, recycle or resell them, is growing 11 times faster than traditional retail and is expected to reach $84 billion by 2030. Affluent consumers are prioritizing sustainability initiatives, putting their money where their beliefs are, and the retailers that are winning are the retailers that are taking notice.