Dollar General has a particularly clear view on the pocketbooks of low-income Americans, given that those shoppers are a core customer base of discount retailers. And some are so financially boring that they can’t afford basic necessities, and the chain was relayed on Thursday.
CEO Todd Vasos said longtime escalating prices narrow down the Lang people at the bottom of the income ladder, and Dollar General doesn’t expect any improvements this year “particularly for our core customers.”
The warning comes as businesses and investors are increasingly concerned about the US economy slowing down. Uncertainty arises From a conflict with the Trump administration’s trading partner.
CEO Todd Bassos told analysts on Thursday in a revenue call. “Many of our customers report that they only had enough money for basic essentials, and we note that some have had to sacrifice even essentials.”
Retailers, which tallyed over $40 billion in 2024 sales for 2024, reported a revival of the trend of high-income shoppers turning into frequent discount stores.
“Some of these negative dynamics will naturally correct as confidence and the economy revives,” commented GlobalData’s Neil Saunders. “The unfortunate thing here is that this doesn’t seem to happen anytime soon.”
Walmart recently drew a similar scenario, saying that some of its customers were short on cash by the end of the month and were shifting to smaller package sizes with consumer goods purchases.
Retailers have recently warned about soft consumer demand amid the president’s concerns Trump’s continued tariffs You can increase the price.
Dick’s sporting goods on Tuesday provided a pessimistic revenue outlook based on customer actions rather than future uncertainty given the president’s trade war. It followed weak guidance from others, including department store chain Coles. Airlines are also reducing revenue forecasts as businesses and consumers curb spending in the face of rising economic headwinds.
