Reasons to Read

Discount and value formats have expanded steadily in US retail, and a mix of demographic, financial and economic forces points to continued support for the segment.

On October 16, 2026, Coresight Research presented insights on the demographic and structural forces powering discount retail at the Premium Member Call.

In this presentation, we provide insights into the rise of discounters among the largest US retailers, who shops at discount banners, financial strain moving to older age groups, the erosion of the middle class, value-seeking across generations, inflation and supply-side expansion, and what separates winning discounters from the rest.

Data in this presentation include:

• Major US retailers’ share of total retail sales, 2023–2025, for TJX, Dollar General, eBay, Aldi, Temu and Ross Stores
• Retailers used by Caucasian, Hispanic and African-American consumers for nonfood purchases, and US population growth by ethnicity since 1995
• Federal student loan balances by borrower age, homeownership rates by age group and the share of population and income by income class
• Consumer survey data on saving behavior and on preferring experiences over products, by generation, and the split of discretionary spending between retail goods and services
• US CPI inflation and US net immigration

Companies mentioned in this report include: 99 Cents Only Stores, Action, Aldi, AliExpress, Amazon (including Amazon Haul), Big Lots, Boohoo, Burlington Stores, Debenhams Group, Dollar General, Dollar Tree, DSW, eBay, Family Dollar, Five Below, Grocery Outlet, Lidl, Nordstrom Rack, Old Navy, Primark, Ross Stores, Save A Lot, Shein, Temu, The TJX Companies, Trader Joe’s and Walmart.

Other relevant research:

• Discount Decades: A Shrinking Middle Class Reshapes US Retail
• Market Navigator: Inside the $1 Trillion US Value Retail Market
• US Fashion Resale: Value, Vintage and Luxury Drive Momentum
• How Generations Actually Shop: Young Consumers Buy Broadly, Older Consumers Buy Deep
• ​​Discount Decades: The Demographic and Structural Forces Powering Discount Retail: Premium Member Call