Americans spend more at value chains

New Empower data shows a marked shift in where shoppers are choosing to spend. The winner? Dollar stores.

Americans are not just bargain-hunting. They’re intentionally adopting smaller basket sizes and shopping more frequently and locally¹. Consumers are pumping the brakes on key categories such as gas spending—driven by economic caution, evolving lifestyles, and emerging technologies (read Fueling the shift). With lingering cost-of-living pressures, dollar stores offer convenience and immediate affordability².

All spending data and analysis below are sourced from Empower Personal Dashboard™.

Dollar stores vs. wholesale clubs: A comparison

New spending data from the Empower Personal Dashboard™ highlights a noteworthy divergence in consumer behavior in early 2025. Dollar stores have shown steady and incremental growth in spending each month, from $25 in January to $30 in May, indicating a slow but persistent uptick in value-conscious shopping. In contrast, wholesale clubs started the year strong, with spending peaking at $508 in January, but have since experienced a notable downward trend, falling by more than 30% to $352 by May (figure 1). According to Empower's Financial Happiness study, more than three in five Millennials and Gen Zers already shop at the dollar store for groceries and household goods (63%).

This shift may signal changing consumer priorities, with shoppers potentially pulling back from bulk purchases in favor of smaller, more frequent buys as economic caution sets in. The data suggests dollar stores are gaining momentum as a go-to option for budget-conscious households navigating inflation and economic uncertainty.

Figure 1: Monthly spend at dollar stores vs. wholesale clubs (January to May 2025)

Source: Empower Personal Dashboard™.

Dollar stores see a resurgence

Between January and May 2025, spending patterns at dollar stores and wholesale clubs have diverged sharply. Dollar stores have experienced a steady upward trajectory, with monthly spending growth climbing from just over 4% in February to nearly 12% by May 2025 (figure 2). This suggests accelerating momentum as budget retailers gain traction.

Conversely, wholesale clubs have seen a reversal. After a brief rebound in March, monthly spending growth plunged, falling more than 20% by May. This steep decline points to a possible shift in consumer confidence or a cooling of bulk-buying behavior, particularly as shoppers reassess their household spending priorities.

These trends underscore a broader shift toward frequent, lower-cost purchases—potentially signaling increased price sensitivity across a wider range of income levels. This also indicates a potential increase in higher-income shoppers looking to stretch their dollars. For instance, Dollar General is luring in more higher-income households as shoppers tighten their spending amid growing concerns around the economy³.

Figure 2: Monthly change in spending at dollar stores vs. wholesale clubs (January to May 2025)
 

Source: Empower Personal Dashboard™.

What’s driving the trend?

• Economic pressure: Still elevated cost of living and relatively stagnant wages are squeezing household budgets, making dollar stores an appealing option⁴.
• Convenience: On an average, there are higher number of dollar stores compared to big box stores and wholesale clubs in a city, which reduce the need for large, bulk-buy trips⁵.
• Product assortment upgrades: Many dollar retailers have diversified offerings, including food, personal care, and even private-label goods with improved quality⁶.

With economic uncertainty still looming, the dollar store segment may be poised to grow further with Americans who are seeking value, proximity, and flexibility. And dollar stores are meeting that need head-on.