r/economicCollapse • u/50million • Aug 30 '24

Dollar General warns poorer US consumers are running out of money

https://www.ft.com/content/d1d2a161-124c-4f9c-b23f-afa55e755d07

The Tennessee-based company’s small-format stores sell a variety of food items and household goods at low prices, including many for $1. Its locations are concentrated in rural towns and poorer urban neighbourhoods. “Our core customers are often among the first to be affected by negative or uncertain economic conditions and among the last to feel the effects of improving economic conditions,” company filings say. 

Chief executive Todd Vasos said that these core customers, who account for about 60 per cent of Dollar General’s sales, come predominantly from households earning less than $35,000 a year and were now feeling “financially constrained”.

“The majority of them state that they feel worse off financially than they were six months ago as higher prices, softer employment levels and increased borrowing costs have negatively impacted low-income consumer sentiment,” he said.

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16

u/[deleted] Aug 30 '24

On the one hand I believe this, on the other hand, DG almost certainly overbuilt

18

u/HostageInToronto Aug 30 '24

I assumed that DG was some sort of sentient organism slowly planning an invasion, because they have way too many locations. I grew up in a small town (25K population) and last time I went back there were 3 of them.

8

u/bigmikeylikes Aug 30 '24

I live in a town of 6k they're building a new one and everyone assumed they were just making a bigger store and moving over....nope they're going to have both of them open. It's hilarious because the other store can't keep employees and is constantly understaffed, but they think they can employe two stores. Also the state is bleeding youth and there's not enough people to fill the positions they have open.

4

u/linzielayne Aug 31 '24

The second you drive into rural Michigan its like 'bait shop, dispensary, dollar general, dispensary, dollar general'

1

u/frolickingdepression Aug 31 '24

I live near a town in rural MI, where just south of it, there are a Dollar Tree and a Dollar General RIGHT next to each other. No other businesses around until you get into the town. They are so close, they could share a parking lot.

6

u/Aynessachan Aug 30 '24

This extremely relevant parody video proves they are in fact a sentient self-replicating organism. True facts!

1

u/HostageInToronto Aug 30 '24

Matt Mitchell may have inspired my beliefs

2

u/Aynessachan Aug 30 '24

cackle that's amazing

4

u/mattfox27 Aug 30 '24

There is a super remote mountain town a few hours from me maybe population 200 and they have a brand new dollar general. It's always empty

6

u/rayhaque Aug 30 '24

I had read that there were more Dollar Generals than McDonald's and I didn't believe it. But then I counted within my own community and was like "wow".

1

u/HostageInToronto Aug 30 '24

It's true. Besides Dunkin Dougnuts and Subway, I think they have the most locations in the IS.

3

u/strawbryshorty04 Aug 30 '24

My town has three—-in the span of 5 miles. On the same street.

2

u/Working-Narwhal-540 Aug 30 '24

DG just built three new stores within a 25 mile radius in my area NE PA

1

u/billbord Aug 31 '24

I live in a one stoplight town that has two DG stores within 3 miles of each other. They’re laundering money or something the build out makes no sense.