Discounting is back in fashion, as Americans get tired of paying more toggle caption Scott Olson/Getty Images After two years of paying more for things, Americans are growing more cautious about how they spend their money and are forcing retailers to offer more discounts. Target and Walmart are rolling back prices on grocery items and McDonald's is introducing a $5 meal. And stores like Dollar General, which specialize in discounted items, are attracting more cost-conscious customers.
"It's a cautious consumer," said CEO Todd Vasos, describing Dollar General's typical shopper. "She is definitely making tradeoffs in the store and at the shelf." Dollar General reported better-than-expected profits when it released its most recent quarterly results on Thursday.
The discount chain says it's attracting more middle- and upper-income shoppers, looking for bargains. But Dollar General's lower-income shoppers are often checking out with fewer items in their baskets. Financial strain is real Broader data are showing that people are feeling the strain.
Retailers say customers are pushing back against additional price increases, according to the Federal Reserve's latest "Beige Book," which collects anecdotal information from businesses around...
Scott Horsley.
