Crazy Money! Dollar Store Warning Signs
It’s Crazy Money Day!
During Covid-19, people with higher incomes started shopping at dollar stores. Yet, Dollar General’s sales were down this summer. This is likely due to a variety of factors including rising inflation, stagnant wages, and economic uncertainty. High prices and interest rates have taken a toll and people are spending cautiously. According to the Wall Street Journal, both Dollar General and Dollar Tree customers have prioritized spending on essential items, like food, and less on toys and electronics. In September of 2022, Dollar General’s greatest boost in sales came from people earning between $75,000 and $100,000. Now, the stores are dealing with lower sales and an overflow of inventory. To clear shelves, some products are marked down to just 1 cent. It’s crazy! Sounds like a good place to do some Christmas shopping!
Both stores are attempting to meet increased demand for essentials by diversifying products and enhancing grocery offerings. Historically, dollar stores have been a barometer for consumer sentiment. What we’re seeing is customers spending more on necessities, leaving less to spend on discretionary items. Retailers that stock non-essential goods may face hard times ahead. We may see a dramatic reshaping in the retail landscape. You may require an extra measure of self-control when it comes to spending. Don’t allow the world to dictate what you need. Budget wisely and set your heart on God, thanking Him for all He’s given you.
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