Dollar Tree and Dollar General have reported higher second-quarter sales as crippling inflation pushed shoppers towards cheaper options.
Similar to recessions in previous years, people with higher incomes are again finding their way back to the bargain stores as a way to save more money, 12 News reported Thursday.
“Dollar Tree and Dollar General are also grappling with rising costs that are rippling through their supply chains. Profits are being squeezed as shoppers narrow their focus on necessities like groceries, which have more slim profit margins,” the outlet continued:
Dollar Tree Inc. reported a second-quarter profit of $359.9 million or $1.60 per share for the three-month period ended July 30. That compares with $282.4 million, or $1.23 per share in the year ago period.
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Dollar General Corp., based in Goodlettsville, Tennessee, reported fiscal second-quarter net income of $678 million, or $2.98 per share, for the three-month period ended July 29. That compares with $637 million, or $2.69 per share, in the year-ago period.
In November, President Joe Biden’s inflation caused Dollar Tree to hike prices by 25 percent on most of its products.
“After 35 years of offering consumers, often ‘low-income consumers,’ everyday products for just a dollar, Dollar Tree customers will have to fork over 25 percent more money, or $1.25, to purchase the majority of goods sold in Dollar Tree stores,” Breitbart News reported.
Americans struggled with higher food prices in July despite Biden’s White House claiming inflation ran at zero throughout that period.
“Compared with a year ago, consumer food prices are up 15.8 percent, the highest year-to-year rate of inflation since 1974,” Breitbart News reported earlier this month.
Meanwhile, inflation and crime emerged as the main issues of concern before the upcoming midterms, according to a Rasmussen Reports survey published this week.
“There is a consensus across the board, as most Democrats, Republicans, and independents identify inflation as a concern,” the Breitbart News article said.
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