The CEO of Dollar General has admitted that the chain is “not anticipating improvement” for core customers in 2025, amid President Donald Trump’s ongoing foreign trade wars.
Todd Vasos said Thursday that many patrons of the store indicated that "their financial situation has worsened over the last year as they have been negatively impacted by ongoing inflation.”
"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," Vasos said, per Business Insider.
It comes as Trump refuses to back down on his battle with foreign trading partners including Canada and the European Union. It has also been suggested that the U.S. economy is retracting and heading for a potential recession.
On Friday however, Commerce Secretary Howard Lutnick rejected the projections, telling Fox Business that the forecasts were “ridiculous” while reassuring the public that everything is “awesome” right now.
“It’s not that bad!” Lutnick exclaimed, adding that nobody is feeling any “deep pain” at the moment.
Shares of Dollar General were 5 percent higher Thursday morning after the chain issued sales guidance for the rest of the year, though Vasos admitted that the brand is "not anticipating improvement in the macro environment, particularly for our core customer.”
The chain is the latest retailer to take a cautious stance on consumer spending for this year. Others, including Target and Abercrombie & Fitch have also expressed concern, and Walmart executives said last month that they were taking a "measured" outlook on 2025.
According to the Conference Board, U.S. consumer confidence plunged last month, the biggest monthly decline in more than four years. Respondents to the board’s survey expressed concern over inflation with a significant increase in mentions of trade and tariffs.
According to Insider, Vasos said Dollar General was "well-positioned to mitigate the impact in 2025" of the tariffs so far announced, but acknowledged that the situation could change.
He also said that the average customers were struggling, even without the effects of the levies.
Vasos noted that shoppers with higher incomes had continued to turn to Dollar General in an attempt to save money. It follows a trend also seen by retailers including Walmart over the last few years in line with increasing inflation.
