How Dollar Stores Became the Surprise MVP of Gen Z Shopping for Beauty
If you think about Gen Z shopping, you may think of thrift stores, Depop shops or even the aisles of Target. But lately, there’s a new store that has been quick to secure young consumers' money, especially when it comes to beauty: Dollar Store.
Yes, the place once a pitstop for birthday store decorations, and paper towels has now turned into an affordable beauty option…complete with makeup dupes, trendy tools and even TikTok-approved finds.
Gen Z Shopping Habits Are Shifting, And Fast
We uncovered this new trend in a recent survey from our Youthtellers (ages 15-27) who revealed that 55% of them shop for beauty products at the Dollar Store multiple times a year. 15% even told us they pop-in monthly to find out what’s new.
And while 23% say they never shop beauty products at these stores, the growing buzz online around shopping here suggests that this number could soon shrink, especially as talk of a potential recession rises among Gen Z.
For many, the main draw of these stores is the affordability. For 75% of the shoppers heading to dollar stores, being able to test new products without wincing at their bank account is the main reason.
Why Gen Z Is Falling for Dollar Store Beauty
This Gen Z shopping trend isn’t just about cost-cutting, though. Almost half (48%) love the ability to try new things without having to make a bigger purchase, and over a third (38%) say that the convenience of these stores helps a lot.
The love of a good dupe also plays a role, with TikTok and other social platforms hyping up the affordable options to prestige products that are trending.
However, there is one key category that is reigning supreme: beauty tools. 93% of our respondents who shop at dollar stores are picking up brushes, blenders and other tools after finding the quality to be the same as more expensive products found at Ulta or Sephora.
After this, nail products come in at (58%), then makeup (47%), hair care (38%) and then skincare (30%). Proving that dollar store beauty finds may not be about replacing the entire routine, but adding in budget friendly options.
The Quality Question
Now, to be fair, the quality perceptions of dollar store finds are mixed, but not disastrous. 63% of our Gen Z shoppers found that the products performed as expected, 25% said it depended on the product and a surprising 13% even found that the products were better than expected.
But the most interesting factor we discovered is that ingredient awareness is a factor to Gen Z shopping decisions at the dollar store. 50% actively avoid certain ingredients, 45% are looking for natural or ‘clean’ ingredients and 35% have figured out how to find formulas that work for their hair or skin type.
Stigma Is Fading
Buying cost efficient items used to be something people would feel ashamed about, as if they were admitting economic defeat. And while 29% of our respondents said they can feel the stigma of shopping at budget stores sometimes, most don’t care (23%) or feel no stigma at all (28%).
When it comes to Gen Z, this generation thrives on mixing high and low fashion. And a dollar store lipgloss paired with Dior blush? It has the same energy as mixing thrifted jeans with designer shoes.
The Bigger Picture for Gen Z Shopping
This shift towards budget buys says a lot about the Gen Z mindset. Now, affordability isn’t about compromise, it’s about strategy. And dupes are the exact same, it’s not bad to find an affordable option. It’s actually a flex. As more people begin to shop at dollar stores, the category could lose its budget reputation and become an intentional part of Gen Z’s beauty ecosystem. And to keep up? Brands might have to create more affordable options or mini versions of their products priced reasonably to keep up with the demand.
It’s clear Gen Z loves testing products, without the consequences and while dollar stores might not take the place of Sephora in Gen Z’s heart, they’re certainly carving out a place for themselves in this generation’s shopping cart.