Dollar General Sees Worsening Finances Among Lower-Income Shoppers
18 March 2025 · Uncategorized ·
Amidst the economic disruption caused by Trump's tariff policies, Dollar General has cautioned that financial conditions for American middle- and low-income consumers have worsened.
According to reports from CNN and other foreign media outlets, Todd Vasos, CEO of Dollar General, stated that high inflation had continued to erode the finances of lower-income Americans over the past year. Many are now limited to purchasing basic necessities; Dollar General primarily serves customers earning less than $40,000 annually by offering affordable goods.
While recent data indicates a slower-than-expected increase in the US consumer price index (CPI) for February, rent and essential living expenses have steadily risen over the past few years, placing considerable pressure on consumers' budgets.
Dollar General reported revenue increased by 4.5% year-over-year to $10.3 billion last quarter, with adjusted earnings per share at 87 cents—nearly halved compared to a year ago due primarily to impairment charges from closing stores totaling approximately 81 cents per share. The company has been strategically closing underperforming locations in recent years to improve profitability and plans to close another 96 this quarter while opening 46 new, upscale "Popshelf" stores.
Concerns persist that fluctuating tariff policies since Trump took office may negatively impact consumer demand. If retailers are forced to raise prices due to increased import costs resulting from tariffs, it will further strain consumers' finances—a warning recently echoed by retail chains such as Target and Best Buy.
Ashley Buchanan, CEO of Kohl’s Corporation, also noted that economic uncertainty disproportionately affects low-income earners; those earning under $50,000 are “struggling,” while even individuals making less than $100,000 face financial challenges.
(Translated with permission from MoneyDJ News. Image source: Dollar General)
According to reports from CNN and other foreign media outlets, Todd Vasos, CEO of Dollar General, stated that high inflation had continued to erode the finances of lower-income Americans over the past year. Many are now limited to purchasing basic necessities; Dollar General primarily serves customers earning less than $40,000 annually by offering affordable goods.
While recent data indicates a slower-than-expected increase in the US consumer price index (CPI) for February, rent and essential living expenses have steadily risen over the past few years, placing considerable pressure on consumers' budgets.
Dollar General reported revenue increased by 4.5% year-over-year to $10.3 billion last quarter, with adjusted earnings per share at 87 cents—nearly halved compared to a year ago due primarily to impairment charges from closing stores totaling approximately 81 cents per share. The company has been strategically closing underperforming locations in recent years to improve profitability and plans to close another 96 this quarter while opening 46 new, upscale "Popshelf" stores.
Concerns persist that fluctuating tariff policies since Trump took office may negatively impact consumer demand. If retailers are forced to raise prices due to increased import costs resulting from tariffs, it will further strain consumers' finances—a warning recently echoed by retail chains such as Target and Best Buy.
Ashley Buchanan, CEO of Kohl’s Corporation, also noted that economic uncertainty disproportionately affects low-income earners; those earning under $50,000 are “struggling,” while even individuals making less than $100,000 face financial challenges.
(Translated with permission from MoneyDJ News. Image source: Dollar General)