<div id="readability-page-1">The beauty industry continues to grow — and dollar stores are getting in on the action.Both prestige and mass beauty retail sales grew during the first quarter in the U.S., according to data from Circana. However, growth was value-driven as dollar growth outpaced units, per the research group.A more selective beauty shopper — confronting higher prices in some categories due to heightened fuel costs — could benefit players such as Dollar Tree.“Beauty has absolutely grown in relevance for us over the last few years,” Dollar Tree’s Chief Merchandising Officer Brent Beebe told Retail Dive in emailed comments. “What’s changed is how customers engage with the category.”Social media and digital influencers have encouraged consumers to experiment more and seek out more options in their beauty routines, which Beebe says aligns with Dollar Tree’s “thrill of the hunt” approach to shopping.The retailer’s Q1 net sales increased 7.2% year over year to nearly $5 billion, with comparable store net sales growing 3.5% driven by a jump in average ticket.“I think everyone, in some way, shape, or form, has become a value consumer,” David Schneidman, managing director at Alvarez &amp; Marsal’s Consumer and Retail Group, told Retail Dive. “Between social media selling and then Amazon, people realize that you don't have to buy only expensive products, especially when … there's just so much content online that educates you.”<div><hr/><div>“I think everyone, in some way, shape, or form, has become a value consumer.&#34;<img src="https://imageproxy.pbkrs.com/https://d12v9rtnomnebu.cloudfront.net/diveimages/corporate_site/teampage/square_profiles/placeholder-200.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="200" height="200" original-src="https://imageproxy.pbkrs.com/https://d12v9rtnomnebu.cloudfront.net/diveimages/corporate_site/teampage/square_profiles/placeholder-200.png"/><div>David SchneidmanManaging Director, Alvarez &amp; Marsal’s Consumer and Retail Group</div></div><hr/></div>Higher-income shoppers have been flocking to dollar stores like Dollar Tree and Dollar General for several quarters now, as compounding macroeconomic pressures are pushing consumers to trade down.That bodes well for dollar stores as higher-income shoppers may be feeling more optimistic with their spending expectations, according to spring 2026 data from Alvarez &amp; Marsal’s Consumer and Retail Group.Expected spending this spring diverged between low- and high-household income consumers in several categories such as beauty, the report found, with the wealthier consumer expecting to spend more. Additionally, 43% of respondents said they have simplified their beauty routines over the past year by using fewer steps and products.“The natural expansion [of beauty at dollar stores] is obvious because it's an untapped consumer,” Schneidman said. “With the proliferation of … this K-shaped economy, you need to ensure that you have product that fulfills and price points that fulfill all demographics.”Dollar Tree’s multiprice point expansion over the past few years has helped it bring in new demographics of consumers while also battling inflationary headwinds.Dollar General has also made inroads with higher-income shoppers and is leaning more into beauty, with the company holding a category specific sale event in April.“Everyone wants to save money, regardless of income level, and we’re seeing customers across all levels being more intentional about their spending,” Dollar Tree’s Beebe added. “That absolutely includes beauty and personal care … Beauty is a category where people don’t want to stop buying the product – they just rethink where they buy it.”Luckily for retailers and brand founders, the barrier to entry for creating a beauty product is relatively easy and allows for a wide range of price-points, Schneidman said. Additionally, the category tends to have high loyalty among shoppers and products have longershelf lives than other categories, such as food and beverage.Beauty may not be wholly new to dollar stores, but they’re increasingly cashing in on the diverse range of shoppers the category brings in, Schneidman added.“It's becoming more democratized towards multiple demographics, where there are unique products for the masses,” he said. </div>

DLTR

Dollar stores like Dollar Tree and Dollar General are capitalizing on the beauty industry's value-driven growth. As consumers, including higher-income shoppers, seek affordable options due to inflation and economic pressures, these retailers are expanding their beauty offerings. This shift aligns with a broader trend of 'value consumption' fueled by social media education and a desire for cost-effective routines, allowing dollar stores to attract diverse demographics and increase sales.

Beauty shoppers are hunting for value. Dollar stores are ready.