Dollar Tree (DLTR) Expands into Higher-Income Shoppers Amid K-Shaped Economy

Dollar Tree (DLTR) outperforms in a K-shaped economy by broadening its customer base and shifting into higher-income shoppers. In its most recent quarter, store visits rose 3 million YoY, with 60% of new visitors earning at least $100,000. CEO Michael Creedon Jr. said the company serves a broader income range, with over a quarter of new stores opening in ZIP codes where median household income exceeds $600,000. Dollar Tree lifted its base price to $1.25 and expanded its range to include items up to $7, targeting repeat purchases from higher-income consumers. The strategy is projected to add about $1 billion in annual sales.