Inflation may not be rising as quickly as it was a few years ago, but shoppers are still feeling the pain every time they head to the checkout.
That’s made value-focused retailers such as Dollar General increasingly important for families looking to stretch every dollar, especially as we gear up for one of the most expensive times of the year — back-to-school season.
Many families have no choice but to stretch their budgets for back-to-school items because they can’t send their kids to the classroom with empty backpacks. But the cost of school supplies and other essentials is a burden for many.
The typical back-to-school budget rose 11.7% this year to $489 per child, according to JLL.
Deloitte, meanwhile, forecasts that parents will spend an average of $557 per student in grades K-12, making a roughly 6% inflation-adjusted decline from last year as shoppers prioritize necessities over wants.
Dollar General wants to capture a big share of the back-to-school market. And it’s making a strategic pricing decision that’s similar to a tactic Costco is known for.
Dollar General freezes back-to-school prices at last year’s levels
Dollar General announced that every item in its 2026 back-to-school assortment will sell for the exact same price it carried in 2025, the company shared in a press release.
The inflation-proof pricing applies across the retailer’s seasonal school supply lineup, including notebooks, crayons, folders, pencils, glue sticks, and other classroom essentials.
Related: Dollar Tree shoppers keep hitting the same frustrating problem
The company also highlighted that hundreds of back-to-school products remain priced at $1 or less, giving shoppers another reason to make Dollar General their first stop before the school year begins.
“The back-to-school season can put pressure on household and classroom budgets, especially when everything is needed at once,” said Dollar General Division Merchandise Manager Steve O’Brien, Progressive Grocer reported.
“Our focus is on offering the essentials customers rely on at affordable prices, including a wide assortment of items at $1 or less.”
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Can Dollar General’s inflation-proof pricing actually win customer loyalty?
Dollar General isn’t just trying to throw customers a bone. It’s also trying to win their loyalty.
It’s a similar strategy to Costco’s legendary $1.50 hot dog and soda combo — a deal the warehouse retailer has famously refused to change for decades, despite inflation.
While freezing school-supply prices for one season isn’t as iconic, both promotions are built on the same premise: Use a high-profile value promise to strengthen customer trust and encourage repeat visits.
Retail experts say the strategy could resonate well with the consumers Dollar General serves.
“Promotional messaging around savings and affordability will land well as consumers’ budgets remain tight,” retail expert Mark Ryski told RetailWire.
“With the economy rocky and inflation rising, any sale that promises ‘Same Price as Last Year’ is a powerful statement,” Shep Hyken said in a RetailWire analysis. “It doesn’t matter if it’s Back-to-School or anything else. Promise me milk, eggs, and meat are the same prices as last year, and I’m going there to shop.”
For Dollar General, the promotion is less about protecting margins on notebooks and crayons than reinforcing its identity as a retailer that understands the financial realities facing its customers.
A smart play to beat the competition
Dollar General’s inflation-proof deal also comes as competition for value-conscious shoppers has intensified.
Walmart continues to use its massive scale to keep grocery and household prices low while expanding pickup and delivery options, making it a viable option for budget-minded families.
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At the same time, Dollar Tree is working to redefine its value proposition after moving beyond its longtime $1 price point and broadening its assortment with multi-price merchandise.
Against these competitors, Dollar General’s back-to-school promotion gives the retailer something simple and easy to communicate – prices that shoppers already know won’t increase.
It’s a targeted strategy aimed at driving store traffic during one of the busiest shopping periods of the year while reinforcing the chain’s reputation for affordability.
Maurie Backman owns shares of Costco.
