Dollar General Warns: Finances Of Low-Income Americans Worsening

The financial condition of low-income Americans has deteriorated over the past year, with more shoppers struggling to afford even basic necessities, Nathaniel Meyersohn reported for CNN.

Dollar General’s “core customers” earn less than $40,000 a year, and the chain operates more than 20,000 stores, primarily in rural areas. I Photo: Dollar General

That’s the alarming message from Dollar General, a retailer known for selling inexpensive items and serving as a key indicator of low- and middle-income consumers’ financial health.

Dollar General’s “core customers” earn less than $40,000 a year, and the chain operates 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 a recent earnings call.

“Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities.”

While inflation cooled in February for the first time in five months, high costs in housing, health care, and other essential expenses continue to strain customers’ budgets. Dollar General reported that same-store sales rose just 1.2% last quarter as fewer of its primary customers visited due to “ongoing financial pressures.”

At the same time, the retailer has observed an influx of middle-income consumers trading down to shop at its stores—an indication that financial strain is extending beyond low-income households.

Dollar General also warned that President Donald Trump’s tariffs on imported goods could further hurt consumer demand and potentially force the company to raise prices, exacerbating financial hardships for its customers.