Due to President Joe Biden’s inability to control hyperinflation, many of Walmart’s past clients have yet to return, making even their reduced pricing less attractive than shopping dollar stores.
According to Reuters research, foot traffic at Walmart’s 3,573 supercenters and 370 other bargain stores across the United States fell on average by 2.7 percent from June 1 to July 25 in comparison to the same period last year. ( Because of persistent inflation, more wealthy Americans are buying at cheap retailers.)
Aldi, a discount store owned by Germany, had a boost in foot traffic of 11.5 percent. The number of customer visits rose by 4.1 percent at Dollar General.
Foot traffic to discount retailers like Aldi, Dollar General, Family Dollar, and Dollar Tree grew by 8 percent during the second quarter year over year and climbed by 13.2 percent compared to the first quarter of 2022, as per Placer.ai, a location analytics firm.
Related: America is Cracking
Consumer analytics company Numerator reports that the average household income of Walmart shoppers is $73,000 annually. Families making $40,000 or less a year are the majority of shoppers at Dollar General.
Dollar General has expanded its product assortment to reflect the increase in sales outside of its core demographic as a result of the rapid influx of new, higher-earning buyers.
Americans shop at discount retailers due to the cost of fuel – Doug McMillon, the CEO of Walmart, had referred to the retailer as an “inflation-fighter” and a popular option for customers during economic downturns. Nevertheless, as more Americans shop at bargain shops, Walmart’s share of the market as shoppers’ first pick for grocery purchases fell from 27,4 in June to 25,5 in July.
In June, gas prices skyrocketed to an average of $5 per gallon, up from $3.16 per gallon in the prior year. American monthly budgets are being cut by hundreds or thousands of dollars due to high gas prices, forcing many to modify their spending patterns.
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