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Amid food inflation, more shoppers turn to dollar stores for


A man looks at frozen foods for sale at a Dollar Store in Alhambra, California on August 23, 2022.

Frederic J. Brown | AFP | Getty Images

Among all rising costs, sky-high grocery bills have been especially painful.

Although the consumer price index, an inflation gauge that measures the cost of a broad basket of goods and services, started to ease as of the latest reading, food prices were up yet again, the U.S. Department of Labor reported.

Over the past year, food prices overall have risen more than 10%. Egg prices, alone, soared 60%, butter is up more than 31% and lettuce jumped 25%, according to Labor Department data through December.

As a result, consumers are looking for any — and all — ways to save. For some, that means shopping at their local dollar store.

Dollar stores are pulling in more grocery shoppers

Slowly but surely, discount dollar stores’ share of total grocery spending has been creeping up, according to a recent report from Coresight Research. Already, more than 1 in 5 consumers buy groceries at dollar stores, according to Coresight’s weekly U.S. Consumer Tracker.

A separate study published in the American Journal of Public Health also found that dollar stores were the fastest-growing food retailers, in part because they are expanding at an unmatched pace, especially in rural areas.

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To lure shoppers, the country’s category giants — Dollar General and Dollar Tree, which owns Family Dollar — have been adding stores and remodeling with more refrigeration units and expanded grocery offerings, including healthier foods and fresh produce, the Coresight report found.

“If the two retailers continue to improve the quality of their fresh food while maintaining the low prices associated with their brands, there is a high chance it will bolster their value proposition with their existing consumer base and also pull in new customers from higher-priced retailers,” the report said.

‘It’s about making your dollar go a little further’

In addition, the grocery assortment will still be smaller than what you would find at a supermarket or a warehouse club. For example, the selection of fruits and vegetables may be limited to more shelf-stable offerings like bagged salad mixes and bananas, Ramhold said.

Further, with less turnover, you are more likely to find items near the expiration date. “It’s important to check…



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