Shopping for groceries and other essentials used to be a fairly boring experience. You’d make a list, grab your haul, and move on with your afternoon.
These days, consumers need to spend more time shopping for groceries and essentials. The reason? Everything is up.
In February, food costs rose 3.1% on an annual basis, according to the Consumer Price Index. The cost of groceries specifically rose 2.4%, while the cost of dining out increased 3.9%.
Of course, price increases like these tend to hurt lower-income households the most. But even higher earners are feeling squeezed.
In a CBS News poll conducted last year, 19% of people with incomes of $100,000 or more rated their financial situation as “bad.” And if prices continue to climb, it won’t be surprising to see higher earners start to make serious cuts.
Dollar Tree acknowledges that everyone is struggling
It’s not surprising that low and moderate earners are having a hard time keeping up with their bills. But even people with more generous wages are feeling the pressure.
A good 92% of consumers cut back on spending in 2025, and that extends to essentials like groceries, according to Resume Now’s 2026 Cost-of-Living Crunch Report.
Dollar Tree CEO Mike Creedon has seen the shift, too. “It doesn’t matter how much money you make, everybody is hurting right now,” Creedon said during a conference call last year.
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He echoed that sentiment during Dollar Tree’s Q3 2025 earnings call. “While the consumer landscape remains uneven, the underlying story remains consistent: all consumers are seeking value.”
“Lower-income households are depending on us more than ever,” Creedon added.
But while that may be the case, Dollar Tree has also noted that a growing number of higher earners are frequenting its stores. And there’s a reason for that.
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Dollar Tree’s new pricing strategy reflects a broad economic shift
Dollar Tree said during its most recent earnings call that it had 3 million more households shop at its stores during the quarter compared to the same time last year. But about 60% of those new shoppers came from households earning more than $100,000.
For this reason, Dollar Tree had embraced a new multi-price strategy. Rather than limiting its offering to the $1.25 to $1.50 price point, Dollar Tree is aiming for a broader assortment of products at higher prices, some hitting the $7 mark.
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“Multi-Price is one of the most important strategic shifts in Dollar Tree’s modern history, and it’s working,” Creedon said.
This shift, however, unearths a harsh reality: Higher-income households are increasingly turning to Dollar Tree because their paychecks aren’t going as far at traditional big-box stores.
In January, overall foot traffic at Dollar Tree was up 0.9% compared to the previous year, according to Placer.ai data.
But it’s not just Dollar Tree that’s seen a recent increase. Dollar General saw a 4.9% uptick in year-over-year foot traffic in January, per Placer.ai. And while the two chains tend to attract different types of shoppers, the trend seems pretty clear.
Consumers are increasingly looking for savings opportunities in the course of their shopping, and they’re willing to frequent discount retailers to save money.
That’s not a bad thing by itself. But it may also indicate that Americans across all income levels are succumbing to economic uncertainty and personal financial worries.
