Dollar General CEO Todd Vasos said at the Goldman Sachs Global Consumer and Retail conference that financial strain now spans all income levels, with middle- to upper-middle-income shoppers acting more like lower-income shoppers amid sustained inflation, rising living costs, inflated gas prices and stagnating wages. Vasos said shoppers in the $100,000+ bracket no longer feel high-income and have become more value seeking, shopping discount retailers like Dollar General for essentials, echoing his August second-quarter earnings call comments that the chain's core consumers were in "distress" and "definitely still stretched." COO Emily Taylor said the chain has historically retained trade-in customers and expects that to hold even if gas prices fall and economic pressures ease, citing targeted offers and shopper surprise at its value and assortment breadth. Vasos said Dollar General is renewing its focus on low prices, with 2,000 items at or below $1 and plans to add more of that assortment in the back half of the year. The company notes it is within 5 miles of 75% of the U.S. population, a proximity advantage it expects to keep it afloat whether budgets stay tight or the economy turns.
Dollar General CorporationCEO says high-income shoppers are trading down to discount retailers like Dollar General for essentials, boosting its customer base.
Walmart Inc.
ThredUp Inc