After a period of growth, US dollar stores are facing a downturn. Dollar Tree shares dropped 20% as the company reduced its outlook for the rest of the year. This was attributed to immense pressures faced by its low- and middle-income customer base. Dollar General also slashed its full-year forecast, resulting in its worst day on record. Dollar General and Dollar Tree have been the fastest-growing retailers in recent years, benefiting from factors such as entrenched poverty, a shrinking middle class, and store closures by rivals. However, these dollar stores have been struggling as low-income customers face difficulties affording basic necessities and as competition from Walmart and other chains intensifies.
