Posted on 08/30/2024 8:34:03 AM PDT by SeekAndFind
Dollar General's stock plunged nearly 30% after it reported worse-than-expected quarterly results.
It's a sign of how dire things have become for low-income shoppers.
It also challenges a widely held assumption about dollar stores.
Things are getting worse for US consumers, and Dollar General is suffering as a result.
The dollar store chain reported second-quarter comparable sales below analysts' expectations on Thursday. Dollar General also cut its sales growth expectations for the rest of the year, warning that its low-income customers have pulled back spending — and that things could get even worse.
The quarter included a "weaker sales environment for our core consumer than we anticipated," CEO Todd Vasos said on the earnings call. About 60% of Dollar General's customers come from households with annual incomes of less than $35,000.
The company's shares plunged as much as 30%.
But it's not just Dollar General suffering. Competitor Dollar Tree also dropped about 10%. The reason: the news challenges a widely held assumption that dollar stores do well in any economy. Vasos told investors on an earnings call four years ago: "We do very good in good times, and we do fabulous in bad times." The 2008-era economic downturn was a case in point, with many middle-income consumers turning to dollar stores in hopes of saving money. But that doesn't appear to be happening — at the moment.
Dollar General's key customers are stretched, Vasos said, citing a company survey. About 30% of respondents said they've maxed out at least one of their credit cards, while 25% said they expect to miss a bill payment in the next six months.
(Excerpt) Read more at msn.com ...
You can still find people who think this is the strongest economy in history. They watch MSNBC.
We are in the midst of a horrible recession. I don’t give a damn what the government numbers are. Take a look at the restaurants and bars and service oriented businesses. They are taking a huge hit because the phony money has dried up.
Part of their problem is that their prices are as high as places like Walmart. People will just go to Walmart and have more variety.
I live rural and people go there to pick up a few things rather than drive far to a Walmart or big box store.
I sometimes shop at a Dollar Store that’s on the edge of a sketchy area. At times there is only one employee in the entire store, at a cash register. I suppose they are having trouble getting help.
Maybe there’s someone in the back looking at cameras. But I’m guessing that the shoplifting there must be significant.
The dollar stores have few items that are values.
A 13 oz. package of cookie item was reduced to 9.25 oz.
The bags of pretzels...
The candy....
$1.35 or more in New England
About 10 days ago, I dropped my wife off at our church for her bible study group. We needed a few grocery items.
I decided to go to one of these stores to minimize driving across while my wife was at church.
Parking at the local discount store was hard to find and so was any fresh fruit or veggies. Wine was from unknown wineries.
That will be the last time we/I shop there.
They probably should have gone to a $2 price point and offered lower per ounce pricing.
The really small packages require extra work and have extra costs.
Dollar Tree is now 1.25 Dollar Tree.
In truth, if you really price shop Dollar General isn’t the best value for the dollar.
Things are bad in the ghetto. Vote for Trump, people!
The name brand items in a DG are often a smaller size than what is sold in the grocery chains.
People are doing better, and don’t have to go to that crap hole.
Here is the problem
Nothing is a dollar anymore
their canned goods are no longer competitive
They have some pretty ugly produce
Their meats, dairy and frozen cabinets are barren
No real incentive to shop there unless you have to walk.
Other than that, Walmart and Grocery Outlet are better options because availability, selection and prices
When chains like Big Lots are closing stores..things are not that rosey.
They’ve always been more expensive than the big boxes. They played the game of being the only store in town and or of convenience. They have shifted from consumer staple to consumer discretionary, and have payed the price. They are another form of 7/11, not cheap at all.
“People are doing better”
How are people doing better? Better than when?
I’m shocked at the number of new applications we are getting every week at our church food bank and the number of people who are saying they have nothing in the refrigerator or pantry. The Biden Harris economy is destroying lives.
Dollar General’s key customers are stretched.
Were from the government and here to help you.
Biden/Harris.
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