Dollar General and Dollar Tree report growth amid shifting U.S. consumer spending

American discount retailers Dollar General and Dollar Tree have reported quarterly results that reflect shifting consumer behavior driven by economic uncertainty and high costs for food and fuel. As households face rising living expenses, there is a notable trend of consumers seeking cheaper alternatives for daily necessities, leading to increased foot traffic at discount and club stores.

Dollar General outperformed market expectations, reporting a 33.8% increase in net profit to $550 million compared to the previous year. The company raised its full-year comparable sales growth outlook to a range of 2.5% to 2.9%. Its stock responded positively to these results. Additionally, Dollar General noted that tariff refunds are contributing approximately $0.25 per share to its fiscal year 2026 earnings outlook.

Dollar Tree also saw a 3.7% increase in comparable sales, with average customer counts growing for the first time in four quarters. However, the company's stock declined following a weaker-than-expected profit forecast for the current quarter and a decision to maintain its existing annual revenue targets.

Other retailers, such as Burlington Stores, also reported growth, with quarterly sales rising by 11%. The data suggests a widening divide in the U.S. consumer market, where lower-income groups are reducing discretionary spending in favor of essential goods at more affordable outlets.