Quick Facts
- 60% of Dollar Tree’s 3 million new Q3 2025 customers earn over $100,000 annually, up from 50% in Q1
- Dollar Tree’s Q3 2025 net sales increased 9.4% to $4.7 billion with same-store sales up 4.2%
- Dollar Tree and Dollar General stocks rose 66% and 77% year-to-date, outperforming the S&P 500
Dollar Tree is attracting wealthy shoppers at an accelerating pace. The discount retailer reported that 60% of its 3 million new customers in the third quarter of 2025 came from households earning more than $100,000 annually.
This marks a significant increase from the first quarter of 2025, when high-income households represented 50% of new shoppers. Middle-income consumers earning between $60,000 and $100,000 accounted for 30% of new customers, while lower-income households making under $60,000 comprised the remainder.
“Higher-income households are trading into Dollar Tree; lower-income households are depending on us more than ever,” CEO Michael Creedon Jr. told analysts during the company’s earnings call.
The shift in customer demographics coincided with strong financial performance. Dollar Tree’s third-quarter net sales increased 9.4% year-over-year to $4.7 billion. Same-store sales rose 4.2%, and net income reached $244.6 million, or $1.20 per share, compared to $233.3 million, or $1.08 per share, in the previous year.
Dollar General reported similar trends, with CEO Todd Vasos noting “disproportionate growth coming from higher-income households” in the third quarter. The company’s same-store sales increased 2.5% on a 2.5% rise in customer traffic, while net profit climbed 44% to $282.7 million.
Both dollar store chains have outperformed major retailers in stock performance. Year-to-date, Dollar General and Dollar Tree shares have risen 77% and 66% respectively, handily beating the S&P 500 and larger competitors like Walmart and Target.
The customer shift reflects broader economic patterns. According to Moody’s Analytics research, the top 10% of wealthiest Americans were responsible for 49% of consumer spending in the second quarter of 2025. This “K-shaped” economy sees wealthy consumers continuing to spend while others tighten budgets amid rising costs.
Dollar Tree has adjusted its store expansion strategy to capture this demographic shift. Over the past six years, nearly half of the company’s new U.S. locations opened in affluent ZIP codes with median household incomes higher than regional averages. The chain opened more than 25% of its new stores last year in areas with median household incomes exceeding $100,000.
The company’s 9,000th store opened in Plano, Texas, an affluent Dallas suburb, in May 2025. This strategic positioning reflects management’s recognition of changing customer patterns.
However, the demographic shift presents operational challenges. Traffic at Dollar Tree fell 0.3% in the third quarter, marking the first decline since fiscal 2022, despite gaining new customers. Higher-income households visit less frequently than the chain’s traditional core consumers, affecting overall store traffic metrics.
The trend extends beyond Dollar Tree. Morning Consult Intelligence data shows high-income shoppers increasingly consider dollar stores in their purchasing decisions. The share of high-income consumers who are “absolutely certain” or “very likely” to consider buying from Dollar General, Family Dollar, or Dollar Tree grew from 41% to 49% since October 2024.
Dollar Tree’s multi-price strategy continues to drive results, with CEO Creedon highlighting “an all-time record Halloween season.” The company maintains 85% of its assortment at $2 or less while expanding higher-priced options that appeal to affluent customers.
