"Dollar Tree's 9,000th store opened last year within a few miles of a Louis Vuitton, a steakhouse selling $525 Wagyu beef and Audi, Porsche and Ferrari dealerships, where the average car costs more than what a typical Dollar Tree shopper makes in a year. Inside, while most everyone is looking for a deal - it's not necessarily because they need one. On opening day, three Range Rovers were sitting in the parking lot."
"Dollar Tree says shoppers who make over $100,000 are driving much of its current growth. Last quarter, 60% of new Dollar Tree customers made at least six figures. While wealthier people come into the discount retailer less often than lower-income ones, they spend $1 on average more per visit, according to the company. That adds up: If those kinds of occasional shoppers went to Dollar Tree just one more time per year, it would translate to an additional $1 billion in annual sales,"
Dollar Tree is opening more stores in higher-income metropolitan enclaves, including a 9,000th location near luxury retailers and expensive car dealerships in Plano, Texas. Almost half of new stores in the last six years opened in wealthier areas, up from 41% in the prior six years. Shoppers earning over $100,000 are a major growth driver; last quarter 60% of new customers made at least six figures. Wealthier customers visit less frequently but spend about $1 more per trip. One additional visit per year from those shoppers could add roughly $1 billion in annual sales. Annual revenue is projected to rise more than 10% in 2025, and the stock has climbed 67% year-over-year. Dollar stores often perform well when the economy is shaky.
Read at The Mercury News
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