More shoppers are turning to discount stores to ‘cut costs’ from inflation
Higher prices are forcing more families to shop at discount stores, according to a recent analysis of consumer shopping habits.
Data from InMarket shows that average US spending on discount groceries or wholesale chains increased 71% from October 2021 to June 2022. The survey also found that during over the same period, spending at traditional grocery stores fell 5.6%.
“I definitely go to dollar stores when I can, like snacks for my daughter for daycare and stuff, just so I can kind of cut costs,” one shopper told FOX’s Lydia Hu. Business in front of a Dollar Tree in Nutley, New Jersey on Tuesday.
Shoppers are also looking for great deals at wholesale stores like Costco, Sam’s Club and BJ’s Wholesale. Sam’s Club’s parent company, Walmart, said in its May results that member revenue grew 10.5% year-over-year.
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“It just gave us better value and a better deal that was there,” another buyer told Hu on “Varney & Co.” “We never really go to ShopRite or Stop & Shop for anything.”
Big-box retailers like Walmart have seen the shift in consumer spending, with the company predicting customers will opt out of buying clothes and expecting profits to fall 11-13% next year .
Although more Americans are turning to discount products, Bank of America President and CEO Brian Moynihan touted consumer strength on Tuesday, citing consumer data for July vs. runaway inflation and recession.
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“Right now, the consumer continues to have money in their accounts, keep spending, and also has the ability to borrow with lines of credit and things like that,” Moynihan said on “Mornings with Maria.” “And that’s good news. Unfortunately, that makes the Fed’s job very difficult.”
In June, consumer spending beat expectations and rose 1.1% from May, according to data released by the US Department of Commerce. Consumer spending also accounts for more than two-thirds of US economic activity.
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Bailee Hill of FOX Business contributed to this report.