Dollar General, Walmart Warn That Low-Income American Consumers Are in Trouble

Dollar General and Walmart are united, at least in one particular manner. Both retailers are now issuing warnings that low-income American consumers are reaching their financial breaking point, as CNN reported.

“Our customers continue to report that their financial situation has worsened over the last year as they have been negatively impacted by ongoing inflation,” Dollar General CEO Todd Vasos said on a March 13 earnings call.

“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,” he added.

Dollar General indicated that its same-store sales numbers ticked upward by just 1.2% last quarter as fewer of its primary customers — those earning under $40,000 per year — were visiting to shop due to “ongoing financial pressures.” At the same time, the company saw spend from middle-income customers trading down at stores in order to save money, which may also indicate macroeconomic turbulence.

The retailer gestured toward President Donald Trump’s tariffs as having held at least some sway in terms of depressed spending, reducing demand while increasing sticker prices. Although Dollar General suggested it was “well-positioned” to deal with the ongoing tariffs, it nevertheless raised prices in response.

Dollar General Isn’t Alone: Walmart Is Also Signaling a Strained US Consumer

Dollar General was joined by Walmart in issuing a serious warning about the overall health of the U.S. consumer, particularly those earning less money.

“You can see that the money runs out before the month is gone,” Walmart CEO Doug McMillon told the Economic Club of Chicago weeks ago, per Axios.

“You can see that people are buying smaller pack sizes at the end of the month,” he continued.

Citing Circana data, Axios noted that convenience stores were also seeing a downward incline in terms of sales, tumbling 4.3% for the year ended February.

“People can’t afford it anymore,” sales representative David Guerino told the Wall Street Journal. “If it’s not a necessity, they’re not as willing to splurge.”

Axios closed out a roundup of the issue by suggesting that analysts and onlookers keep an eye on stock trends and tariff news, as a declining stock market — or further tariffs — could exacerbate the issue further.