Lower-Income Consumers Use Digital Channels to Build Bigger Baskets

Earnings season has revealed a consumer who is not withdrawing from the marketplace so much as recalibrating participation, timing purchases with deliberation and increasingly using digital channels to manage each dollar before it is spent.

Across the past several days, results from Dollar General, Dollar Tree and Kohl’s provide a broad illustration of that recalibration. Across store formats and income segments, it’s apparent, especially, that lower-income consumers are concentrating spending, enlarging baskets and relying on digital tools to reduce uncertainty in both price and timing.

The findings align with PYMNTS Intelligence data, which shows a widening divide in financial experience driven by liquidity pressure. The December Wage to Wallet Index describes a “Mirror Image” economy in which hourly workers face persistent constraints tied to cash flow timing, including delayed pay cycles and fixed costs that absorb a disproportionate share of income. Those conditions can and do alter the cadence of spending. Purchases are delayed, grouped and often synchronized with income events.

During their most recent earnings calls with analysts, retail executives described a shift away from incidental shopping toward more deliberate, consolidated trips. At Dollar General, performance reflected both increased traffic and larger transaction sizes, indicating that shoppers are concentrating purchases during their visits.

The company reported that same-store sales growth included a 2.6% increase in customer traffic and a 1.7% rise in average transaction amount, underscoring the dual dynamic of continued demand and tighter purchasing discipline.

That pattern was echoed at Dollar Tree, where average ticket growth offset declining traffic, which indicates planning as well. The company reported a 6.3% increase in average ticket alongside a 1.2% drop in traffic, suggesting that shoppers are “getting more done per visit” even as they reduce store frequency.

Dollar Tree CEO Mike Creedon framed the environment directly: All consumers are seeking value, but as he noted, “lower-income households are depending on us more than ever. For example, the average spend for lower-income households grew more than twice as fast in the third quarter as the average spend for higher-income households.”

Lower-income consumers are still spending, but with greater intention, often bundling needs into a single trip and prioritizing essentials alongside select discretionary items.

What distinguishes the current cycle is the role of digital engagement in shaping those decisions. Dollar General reported more than 7 million monthly active users on its mobile app, alongside a broader ecosystem of over 100 million customer profiles.

Digital ordering and delivery are key channels that are influencing basket composition. According to company disclosures, delivery transactions tend to produce larger baskets than in-store purchases, reinforcing the link between digital planning and consolidated spending.

Executives emphasized that these tools help consumers align purchases with promotions, price points and immediate needs. The result is a shopping process that begins before the store visit, often on a mobile device, where promotions are reviewed, lists are built and budgets are set.

The expansion of basket size across retailers reflects both necessity and strategy. At Dollar Tree, higher price points introduced through multi-price assortments have enabled larger pack sizes, which appeal to shoppers seeking value per unit rather than per item.

Creedon noted that the company’s growth has been broad-based, with 6.5 million net new households added in the quarter, bringing total reach to 102 million.

Dollar General’s results reinforce that interpretation. CEO Todd Vasos told analysts: “Private brands, the one-dollar price point, and a strong everyday low price—those are the benchmarks for what our customers are looking for.”

The emphasis on essentials, combined with selective discretionary purchases, indicates that households are balancing immediate needs with longer-term planning. The basket becomes a tool for managing both.

At Kohl’s, the same pressures are evident, though expressed differently across a broader assortment. The company reported declining comparable sales and acknowledged ongoing strain among its customers.  CEO Michael Bender said on the earnings call: “We know our core low- to middle-income customers continue to face financial pressure, and they are seeking value.”

Digital penetration rose to 35% of sales, reflecting continued channel shift.

The earnings narratives point to a fundamental change in how lower-income consumers engage with commerce. The shopping trip is less about impulsivity than structure.

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