Many Americans are planning to shop at discount retailers this holiday season, VTEX research shows

73% of US consumers say they plan to shop at discount retailers such as Dollar General, Dollar Tree, and Five Below this holiday season, according to new research from VTEX.

According to its survey of 1,000 people, Millennials showed the strongest intent, with 53% stating they are very likely to make discount stores part of their holiday shopping. Social media is also fueling purchase decisions: 28% of respondents have been influenced by TikTok or Instagram holiday shopping content featuring discount stores, a number that rises to 52% among Gen Z.

“Discount store chains are no longer holding an advantage with their competitive pricing alone,” says Mariano Gomide de Faria, Founder and Co-CEO at VTEX.

“They have continued to take noticeable share from Amazon and the big-box giants on value, while social media apps such as TikTok have turned dollar stores into discovery engines for Gen Z. At the same time, Gen X and Millennials, already familiar with these formats, continue to rely on discounters as trusted destinations as the heavy cost of daily life requires them to keep holiday spending in check.”

Other key findings from the VTEX survey include:

61% of shoppers said discount retailers were their top choice for stocking stuffers, followed closely by holiday décor (59%) and party supplies (59%).

26% had already shopped online at discount stores, and another 53% said they would if online prices matched in-store.

Consumers ranked same-day delivery (22%), mobile coupon apps (21%), and buy-online-pickup-in-store (19%) as the most valuable online features.

53% expected to spend $500 or less this season, underscoring the appeal of value driven retailers.

The data points to consumers being willing to stretch their budgets by turning to value driven stores, but they also expect the digital ease, delivery options, and inspiration they get from mass retailers and e-commerce giants.

“Last holiday season was dominated by Shein and Temu. But with tariffs and higher costs reshaping the playing field, this year could be the moment for American discount retailers to win big,” says Mariano Gomide de Faria, Founder and Co-CEO at VTEX.

“Consumers are still laser focused on price, but the real test is whether dollar stores can pair that affordability with digital convenience. If they close the gap between in-store value and online expectations, they won’t just ride the wave of price consciousness; they could redefine who really owns the holiday season.”

2025 RTIH INNOVATION AWARDS

Discount retailers will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now closed for entries with our finalists and shortlists being announced last week, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.