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 ...
When I lived in Texas the closest store to my apartment was DG. I watched several times as melanated folks just loaded up their carts and walked right out the door. It was always the melanated folks. It is no wonder they are going under.
> Dollar Tree is now 1.25 Dollar Tree. <
One in my neck of the woods changed its name (or was bought out). It’s now “Five Below”. Everything is $5 or less. Pretty smart move, actually.
But if Harris cheats her way into the White House, inflation will explode. So to be safe, the Five Below folks show also trademark “Twenty Below”.
Nope- Can’t be! The Communist Hill and their partners are reporting this:
“Economic confidence ticks up: Gallup”
https://freerepublic.com/focus/f-news/4261752/posts
Now just who am I to believe?
Shoptlifting is killing these stores. Even in nice neighborhoods the cashiers say it’s out of control.
Dollar General and Dollar Tree have many items more than 1 dollar. No longer the cheapest on block. Even Walmart can be cheaper on many items.
If DT & DG were smart they would start their own house brands. They are big enough to acquire food and paper goods manufacturers as a start.
No one’s yet mentioned Aldi. Walmart is high on a lot of food items. If you have a Winco, they are also low-cost.
Yet they keep building them. Probably been in the works for years and finally set up the permits to get it done but still. Another one is going in near me a mile from another one that isn’t even that old.
Big Lots is considering bankruptcy. They are a step up from the Dollar stores and below Target.
Of the three big ones here in Jasper, Walmart is the cheapest, followed b Kroger and then Ingles. A new Publix is opening in a few months so we’ll see how that fits in the mix. We also have Dollar Tree and Dollar General but their stores are much smaller.
Are there a lot of illegals? Used to be at the church pantries down where I worked in Marietta.
Some probably are but we require them to fill out an application and present ID with an address or utility bill with in the county. If they don’t have one of those, they fill out the application, are given food and are required to have it next month.
Most of what we see are those who can’t or won’t work and can’t make ends meet.
Really cheap rent around here is 1K/month.
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