Discount stores

Discount Store Gain: Paycheck-to-Paycheck Savings

It’s belt-tightening time for pretty much everyone.

Soaring inflation and rising prices everywhere – at the pumps, in the aisles – mean that dollars just aren’t going as far as they used to, or even as far as 2021.

To that end, it’s no surprise that many of us have chosen to shop at discount stores to get what we need.

Source: PYMNTS.com

PYMNTS research, asking more than 2,100 people about their shopping habits, found that more than half – 56% – had shopped at a discount store in the past month (measured in February).

As we can see in the graph on the left, a significant number of consumers also visited discount stores even though they did not make a purchase, at 12%. This data point involves individuals and families walking through brick-and-mortar doors to see what’s on offer and compare prices.

It’s the graph on the right that indicates how firmly the pivot to finding cheaper products is. Statistics show that more than half of all income groups — not just low-income people on less than $50,000 a year — shopped at discount stores.

This includes, perhaps surprisingly, consumers who earn more than $100,000 per year. And within that income group, a larger percentage — an additional 14% — are walking the aisle, even if they’re not making purchases. Perhaps the deal can be a matter of when, rather than if.

After all, research published last week shows that a growing percentage of high earners are living paycheck to paycheck. Of the latest sample of individuals and their buying habits as shown above, more than 42% say they live paycheck to paycheck with no difficulty paying their bills. Just over 21% say they live paycheck to paycheck with at least some difficulty paying their bills

Read here: Nearly Half of Consumers Earn $100,000 a Year Live Paycheck to Paycheck

But even discount stores are getting a bit more expensive, albeit on a lower basis. Earlier this month, amid the announcement of its results, the parent company of the Dollar Tree and Family Dollar discount chain announced that it would roll out product bundles at $3 and $5 in the coming months.

Read here: Dollar Tree or three? Discount retailers with $3 and $5 price points

We’ll know a bit more about the retail landscape, and in particular the situation for discount businesses, when Dollar General releases its results this week. But it’s a safe bet that we’ll see new evidence that all consumers are becoming more price-conscious as they go about their daily shopping.

——————————

NEW PYMNTS DATA: 57% OF CONSUMERS PREFER ADVANCED IDENTITY VERIFICATION AFTER TRIING IT

On:Fifty-seven percent of consumers who used advanced identity verification methods such as voice recognition when contacting customer service say they would do it again. The Consumer Authentication Experiences report surveyed nearly 3,800 US consumers to find out how delivering innovative verification experiences helps businesses deliver superior customer service across all channels.