Dollar General and Dollar Tree Struggle As Inflation Shifts Consumer Behavior

Dollar store chains, once among the top S&P 500 performers during the Great Recession, are facing a tough year. Shares of Dollar Tree and Dollar General have dropped about 50% in 2024. High inflation has forced lower-income customers to focus on essentials rather than discretionary items. These essentials make up many sales but are generally less profitable. The growth of online shopping has hurt these retailers, as they have struggled to keep pace with e-commerce investments made by competitors. Both chains face ongoing worker safety violations.