Dollar General CEO Todd Vasos addressed the impact of inflation on the company’s customers during the fourth-quarter earnings call. He noted that customers are struggling financially and are prioritizing value and convenience more than ever. The core consumer of Dollar General is facing economic strain but is becoming more resourceful in managing their budgets in the face of ongoing inflation.
Vasos also mentioned the potential impact of President Trump’s tariffs on consumers, stating that Dollar General had to raise prices in response to previous tariffs but is prepared to mitigate any future impact. The company is closely monitoring economic headwinds, including changes to government entitlement programs like SNAP.
CFO Kelly Dilts stated that the company’s guidance for 2025 takes into account continued economic pressure on consumers but does not factor in potential changes to tariff policy or government initiatives.
In the fourth quarter, Dollar General saw same-store sales growth driven by an increase in average transaction, while customer traffic declined due to financial pressures on their core consumer. The company also announced plans to close certain Dollar General and Popshelf stores and convert others into flagship locations.
Overall, Dollar General remains focused on meeting the needs of its customers amidst challenging economic conditions and is taking steps to adapt to changes in the retail landscape. The company’s shares rose following the earnings announcement.
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