Inflation is driving Americans to bargain chain stores

By ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Dollar Tree and Dollar General have reported higher second-quarter as four-decade high inflation drove more customers to bargain chain stores for everything from lightbulbs to groceries. Dollar stores tend to sell items in small quantities, not big packages, allowing low-income customers to buy a little at a time. As with previous recessions, higher income shoppers are returning to bargain chains as they trade down to cut spending where they can. Meanwhile, clothing chain Gap Inc. withdrew its financial forecast, citing economic uncertainty and its continued search for a CEO.