Low-income Americans’ financial condition has gotten worse over the last year and more shoppers are going without basic necessities.
That’s the worrying message coming from Dollar General, which sells inexpensive items and is thus considered a bellwether for low and middle-income shoppers’ health.
Dollar General’s “core customers” earn under $40,000 a year, and the chain has more than 20,000 stores, primarily in rural areas.
“Our customers continue to report that their financial situation has worsened over the last year as they have been negatively impacted by ongoing inflation,” Dollar General CEO Todd Vasos said on an earnings call Thursday.
Dollar General said its sales at stores open for at least one year increased just 1.2% last quarter as fewer of its primary customers visited to shop because of “ongoing financial pressures.”.
At the same time, Dollar General is seeing middle-income consumers trade down into shopping at stores in recent weeks.
Dollar General also said that President Donald Trump’s tariffs on imported goods may also hurt consumer demand and lead the company to raise prices— straining its customers even further. »
