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Dollar Tree CEO says 'pressured' Americans are hosting smaller parties to save money

4 December 2024 at 13:39
cups and mugs at dollar tree
Dollar Tree says its shoppers this holiday are "buying for need and then buying closer to the need."

Gabbi Shaw/Business Insider

  • Dollar Tree "pressured" shoppers are looking for more ways to save money while celebrating.
  • Interim CEO Michael Creedon said people are cutting back on parties and delaying purchases.
  • The remarks follow recent Target comments that shoppers are waiting until "the last moment of need."

If your holiday gathering seems to have fewer guests this year, you're not alone.

Dollar Tree interim CEO Michael Creedon said a shift is taking place, and not just among the "pressured" lower-income shoppers who represent the company's core customer base.

"When you look at a year ago, they were cutting out big purchases โ€” TVs, things like that," he said during the company's quarterly earnings call Wednesday. "If you look at the early part of this year, they started eating more at home and cutting going out."

"Now they're reducing some parties, and we see that โ€” or the party is not as big, they don't invite as many people as they did โ€” so we're seeing that throughout," he added.

The company is also seeing the shift among middle- and upper- income households who have sought out dollar stores for the combination of convenience and price.

It's one of a few new shopping patterns emerging as US shoppers try to make the most of their ever-tightening budgets.

Creedon also said shoppers are holding off on purchases until right before they plan to use them.

The trend has made for some unusual year-over-year sales comparisons for particular days and weeks, but he said quarterly totals are holding up well so far.

"We saw it with Thanksgiving," he said. "I always take the foil pans, which are such a key component of Thanksgiving for us. The last week was just incredible."

Creedon said the company's outlook for the holiday quarter accounts for shoppers "buying for need and then buying closer to the need," as compared with a higher share of non-essential purchases made more steadily throughout the period.

The remarks follow recent comments from Target CEO Brian Cornell that shoppers are "waiting to buy until the last moment of need, focusing on deals, and then stocking up when they find them."

Cornell said these "resourceful" shoppers still spend, but they're getting more choosy about waiting for discounts, special occasions, or a change in the weather.

Read the original article on Business Insider

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