The CEO of Dollar Tree, Mike Creedon knows what gives the store its competitive edge: affordability — especially as households of all income levels face uncertainty with everyday expenses.
“Our deep value and attractive opening price points not only enable us to best serve our core customer, they also position us to benefit from trade-in behavior as customers across multiple income cohorts become increasingly value-focused,” he said in a Q1 2027 earnings call. “Our powerful combination of value, convenience and discovery continues to resonate with customers across all income levels and a wide range of shopping occasions.”
And Dollar Tree’s new Christmas icon glasses (yes, already) are a prime example of how it’s drawing in customers whose tastes reflect the pricier Anthropologie line up. The store came out with four dupes for the viral icon glasses: a red bow, Christmas tree, gingerbread man and snowman, all for $1.50 each — 94% cheaper than the Anthropologie selection, at $24.
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Inflation changing consumption patterns
Many consumers feel the pinch of rising costs and are changing their behavior — whether it’s shopping at discount stores more often for cheaper alternatives or eating out less often.
McDonald’s CEO Chris Kempczinski says beef prices have doubled over the last five years and the company is struggling to meet its financial targets as customers become less willing to foot the bill with steeper menu prices.
And with President Trump’s tariffs still causing price increases, Americans will have to tighten their belts even more.
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How you can respond to rising costs and economic chaos
You can follow the lead of the high-income shoppers that are turning to discount stores like Dollar Tree for some of their purchases.
Here are some additional cost-saving tips:
- Track your spending to eliminate unnecessary expenses.
- Use coupons, buy in bulk and plan meals around what’s on sale at the grocery store.
- Pay down debt and shore up your emergency fund to be better prepared for a recession or a round of layoffs.
- Consider setting up automated savings to have an extra cushion in your bank account for future price shocks.
What not to do? Don’t stop investing, even amid stock market chaos and even if the market sees further declines.
Economic downturns can be a good time to get into the market as shares of stocks and ETFs are relatively low. If you buy and hold stable investments like S&P 500 index funds, your investments are likely to perform well over time.
You might want to talk to a financial adviser to review your goals and adjust your strategy for the current economic climate.
By taking these steps, hopefully you’ll be able to continue to thrive despite the tough economy that the CEOs of Dollar Tree and McDonald’s are talking about.
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Christy Bieber is a US based personal finance and legal writer who has 15 years of experience. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
