Dollar Tree and Dollar General are facing significant financial challenges, with both companies reporting substantial declines in stock prices and slashing their earnings forecasts due to a downturn in consumer spending. Dollar Tree's shares dropped over 20%, the largest one-day sell-off in over two decades, after the company acknowledged that inflation and rising interest rates are impacting both low- and middle-income shoppers. Similarly, Dollar General's stock plummeted following its disappointing quarterly results, emphasizing that more than 60% of its sales come from households earning under $35,000, who are increasingly struggling to afford essentials. Analysts suggest that dollar stores, once considered recession-proof, are now losing market share to larger retailers like Walmart and Target, which are also cutting prices. Both companies are attempting to adapt by exploring multi-price formats and diversifying their product offerings, but the immediate outlook remains bleak as economic pressures weigh heavily on their customer bases.