Dollar store chains like Dollar General and Dollar Tree are attracting more higher-income shoppers amid economic uncertainty. Dollar General reported same-store sales growth of 2.5% in the quarter, surpassing expectations. Dollar Tree gained 3 million new shoppers, with 60% being high-income households. Five Below also saw significant same-store sales growth.

The rise in dollar store shoppers coincides with economic anxiety and evolving trade policies. Consumer sentiment improved in December, but layoffs have surpassed 1.1 million this year. Dollar store chains tend to perform well in weak economic conditions, with shares of Dollar General and Dollar Tree outperforming the S&P 500 this year.

Dollar General plans major renovations and new store openings in 2026 to capitalize on their recent success. The company plans to execute approximately 4,730 real estate projects, including new store openings, remodels, and relocations. The strategy aims to continue attracting higher-income shoppers and sustaining growth. 1. The stock market reached record highs today, with the S&P 500 closing at 4,500 points for the first time ever. This milestone comes as investors remain optimistic about the economic recovery and corporate earnings. The Dow Jones Industrial Average also saw gains, closing at 35,000 points.

2. In other news, the Labor Department reported that the number of jobless claims fell to a new pandemic low last week, with 340,000 Americans filing for unemployment benefits. This marks a positive trend as the labor market continues to recover from the impact of the COVID-19 pandemic.

3. On the international front, tensions are escalating between the United States and China as the U.S. announces a new arms sale to Taiwan. The $750 million deal includes missiles and torpedoes, further straining relations between the two superpowers. China has condemned the sale, calling it a violation of its sovereignty.

4. Meanwhile, the Federal Reserve is expected to announce plans to start tapering its bond-buying program in the coming months. This move is seen as a signal that the central bank is preparing to tighten its monetary policy in response to rising inflation and a strong economic recovery. Investors will be closely watching for any hints on the timing of the tapering.

Read more at Yahoo Finance: Dollar stores continue to see higher-income shoppers, even as consumer sentiment improves