Shares of low-priced consumer goods companies, including one dollar stores, have risen sharply since the beginning of this year, which are considered the industry hardest hit by the Trump administration's tariff bombs. Analysts believe this is the result of ongoing uncertainty in the U.S. economy, leading to a surge in demand for low-priced stores among low-income Americans (formerly the main consumer group) and middle-class and low-income families with declining consumption capacity.
As of the 4th, DollarGeneral's share price on the New York Stock Exchange has risen 43.3% since the beginning of the year, while DollarTree's share price has risen 31.1%. Duole Store and U.S. dollar trees are often called "American Big Chuang" because of their low prices. Duolai Store focuses on groceries and household items, while U.S. Tree sells a variety of consumer goods, including household items, groceries and toys at fixed prices (such as $1.25).
The stock price gains of these companies have significantly outperformed the U.S. stock market. The Nasdaq has risen by 12.7% this year, while the S&P 500 has only risen by about 10.8%.
Analysts believe that this phenomenon is an indicator that the American middle class is being affected by a full-scale economic recession. The Wall Street Journal (WSJ) recently reported: "As the economic sentiment of the low-income class in the United States declines, so does the economic sentiment of the middle class." The report also stated: "The sentiment of the middle class (family economic conditions) has changed from 'stability' to 'tension'."
Indeed, according to data released by market research firms, the confidence index of middle-class households with annual incomes between $50,000 and $100,000 in the United States fell by more than 4%.
As the U.S. job market sends a general cooling signal, middle-class consumer confidence is further weakening. The "Vacancies and Employment Change Report" released by the U.S. Department of Labor on the 3rd showed that the number of job openings in the United States in July was 7.181 million, the lowest level in 10 months.
The National Employment Report of the United States Automatic Data Processing Corporation (ADP) showed that last month, the number of private sector jobs in the United States increased by 54,000 month-on-month, a 50% decrease from 106,000 in July.
