Dollar General CEO Todd Vasos stated on Thursday that inflation continues to negatively affect the company’s customers, and the macroeconomic environment is not expected to improve this year. During the company’s fourth-quarter earnings call, Vasos mentioned that customers are seeking value and convenience more than ever from the dollar-store chain. Vasos highlighted that customers report their financial situation has worsened over the past year due to ongoing inflation. Many customers only have enough money for basic essentials, with some even sacrificing on necessities. Entering 2025, Dollar General does not anticipate any improvement in the macro environment, especially for its core customer base. Vasos noted that the uncertainty partly stems from the potential impact of President Donald Trump’s tariffs on consumers. When Trump imposed tariffs during his first term in 2018 and 2019, Dollar General had to raise some prices in line with the industry but managed to mitigate the impact back then and is well-positioned to do so again this year. CFO Kelly Dilts mentioned that the company’s 2025 guidance considers continued economic pressure on consumers but does not account for further changes in tariff policy or government initiatives like the Supplemental Nutrition Assistance Program. For the fourth quarter, Dollar General reported that same-store sales growth of 1.2% was driven entirely by a 2.3% increase in average transaction, while customer traffic fell by 1.1% due to ongoing financial pressures. Additionally, Dollar General announced plans to close 96 Dollar General stores and 45 Popshelf stores and convert six other Popshelf stores into flagship locations this year. Shares of Dollar General rose by 5% Thursday morning. — news from CNBC
