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As major retailers face challenges, foot traffic and sales at discount stores are climbing

Foot traffic and sales at discount stores are climbing
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As major retailers struggle to stay open, data shows more shoppers are heading to discount stores like Ross because of lower prices.

With a variety of items, discount stores like Ross, T.J. Maxx, and Marshalls have become a popular place for consumers as shoppers hunt for the best deals.

According to a news release from Ross, total sales increased by eight percent, from $21.1 billion in 2024 to $22.8 billion in 2025. Data from Colliers, a global professional services and investment management company, shows foot traffic at discount stores climbed five percent year over year, while foot traffic at department stores climbed just over two percent year over year.

Shopper Gladys Carvajal is redoing her bedroom and expects to save a couple of hundred dollars shopping at Ross compared to major retailers.

"How often do you go to stores like Ross? Oh I'm probably here once every other week. Why do you come here? Just to save money," Carvajal said.

"Oh I'm saving a lot of money, definitely yeah. If you go to Macy's, if you go to any of these other stores, you know you're paying big bucks," Carvajal said.

"This is probably priced at $80.70 at one of those other stores, and over here it's $37, so I'm saving a lot of money," Carvajal said.

Lisa Lorenza also shops at discount stores for consistent pricing.

"You can probably find something on sale somewhere else, but it's the same prices here all the time, and you always find something worth buying," Lorenza said.

Finding those bargains is what experts believe is part of the appeal of shopping at these discount stores, according to Dan Roccato, a finance professor for USD.

"I think we're wired that way as consumers. So we love the treasure hunt, we love the pursuit, and to the extent we get a better price," Roccato said.

Roccato says on the larger scale, this is why some economists believe a recession is looming. When looking at different signals on Wall Street, such as the Walmart recession signal, which compares Walmart's stock performance to that of luxury retailers, it shows it has reached its highest level since the 2008 financial crisis.

However, Roccato says to take that with a grain of salt.

"Walmart stock prices have gone through the roof. It's done quite well over the last year in large part because many consumers, including upper-income consumers, have traded down and are shopping at Walmart. Now that's also an indication that Walmart has upped its game," Roccato said.

While there is still uncertainty regarding the future of the economy, shoppers say right now their main concern is finding ways to keep more money in their wallets.

"Especially of course with the cost of gas right now you gotta try and save every what that you can, and I have to," Lorenza said.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.