Key Takeaways

• Dollar Tree is serving more customers with annual incomes of at least $100,000, in part because it's diversified the stores' merchandise and now sells items that cost as much as $7, executives said.

• Another discount retailer, Dollar General, on Tuesday reported doing more business with middle- and high-income households.

• Dollar Tree customers have been buying candy, snacks, drinks, and other items that are typically consumed quickly, and returning more often, the retailer said.

Dollar stores are gaining ground with high-income households, companies have said this week.

Dollar Tree (DLTR) saw 2.6 million new customers in the latest quarter, and people making at least six figures annually fueled much of that growth, executives said on an earnings conference call Wednesday. Dollar General (DG) on Tuesday said it's seeing more middle- and high-income customers. That effect has been seen across retailers who say wealthier households are increasingly searching for value, Walmart (WMT) among them.

Dollar Tree has been expanding its inventory and adding merchandise that costs as much as $7, which CEO Michael Creedon credited with bringing in wealthier customers. Still, 85% of items at Dollar Tree cost $2 or less, the company said.

“We believe they’re loving the expanded assortment that multi-price provides,” Creedon said, according to a transcript made available by AlphaSense.

Dollar Tree Gets More Monthly Repeat Shoppers

Customers are buying items typically consumed right away, such as candy, snacks, and drinks, and returning more frequently, Creedon said. Dollar Tree posted a 9% bump in the number of shoppers who visit a store at least three times per month, he said.

“In the current environment, our low prices and smaller pack sizes are perfect for families trying to manage a tight household budget, and our expanded assortment is attractive to all customers across every income level,” Creedon said, according to the transcript.

Dollar General’s first-quarter results exceeded expectations, but executives warned tariffs may squeeze profits this quarter, sending its stock lower in recent sessions.

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