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Inflation-Pinched Shoppers Are Turning to Discount Stores Ahead of the Holidays

A Five Below Inc. Store As Company Plans Expands To NYC
Photographer: Daniel Acker/Bloomberg

U.S. consumers are increasingly shopping at discount stores, a sign that families are feeling the pinch from highest inflation since the 1990s as the holiday season approaches. 

Spending at discount stores was up 65% last week compared with 2019, and 21% from the prior week, according to Facteus, a firm that tracks credit and debit card transactions. The discount-stores category, which includes Dollar Tree Inc. and Five Below Inc., had the largest increase by far among all types of retailers, Facteus data show.