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Dollar stores, off-price chains and Best Buy all sent the same message: Value matters

By Axios · May 29, 2026 · 3 min read Axios ↗

American shoppers are still spending — but they’re becoming pickier about where their money goes.

Why it matters: Results Thursday from Dollar Tree, Burlington, Best Buy and Kohl’s suggest that consumers are still willing to spend on bargains and small indulgences — yet are becoming increasingly selective as higher gas prices and other everyday costs pressure household budgets.

The big picture: Retailers gaining traction right now are the ones giving shoppers clear value, convenience or a reason to spend.

Dollar Tree CEO Mike Creedon said customers remain “value focused” as higher fuel prices and broader economic uncertainty pressure budgets.
“People still want to treat themselves,” Creedon said, describing Dollar Tree as a “guilt-free” option for shoppers looking for affordable indulgences.

By the numbers: Dollar Tree posted 3.5% comparable sales growth and raised guidance.

Off-price Burlington reported 6% comparable sales growth and lifted its outlook.
Best Buy surprised analysts with 2% comparable sales growth.
Kohl’s posted its best comparable sales performance in more than four years.
Costco reported 9.8% comparable sales growth later Thursday.

What they’re saying: Burlington CEO Michael O’Sullivan offered a simple explanation for the current retail environment: “The customer is voting for value.”

Neil Saunders, managing director at GlobalData, said Dollar Tree’s results suggest financially pressured consumers are cutting some discretionary trips while still relying on value retailers for essentials.
Costco executives said higher gas prices drove record fuel demand during the quarter as shoppers became increasingly price sensitive, though members were still willing to splurge on some higher-end products when the value felt compelling.

Between the lines: Discount and off-price chains continue to benefit from trade-down behavior as consumers stretch tighter budgets further.

Dollar Tree said it sees more value-focused shopping across income groups, while Burlington said shoppers continue to prioritize affordability.
Kohl’s CEO Michael Bender described shoppers as “sitting around their kitchen table trying to make life work” as they juggle gas, food and utility costs.
Lower-priced store-owned brands, expanded coupon eligibility and value-focused merchandising helped bring core customers back into stores, Kohl’s executives said.

Yes, but: Thursday’s earnings also showed consumers are still willing to spend on discretionary products when they feel they are compelling enough.

Best Buy CEO Corie Barry said shoppers remain “value focused and attracted to sales moments,” but are still willing to spend on higher-ticket technology products “when they need to or when there is technology innovation” — particularly in gaming, computing and mobile phones.
Best Buy also said it expects some technology prices to rise later this year as higher memory costs flow through the industry. Some gaming systems have already started raising prices.
Gap Inc. also reported its ninth consecutive quarter of positive comparable sales, helped by stronger performance at Gap and Old Navy.

The bottom line: In this economy, retailers aren’t just competing on price — they’re competing for justification.

Editor’s note: This story has been updated with Costco and Gap Inc.’s earnings.

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