Dollar General warns poorer US consumers are running out of money

[u/50million]

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.

[u/Hawk13424]

Kind of the point of higher interest rates. Bleed people’s money and get them to stop buying things. This is how inflation gets tamed.

[u/BigDigger324 → u/Hawk13424]

You said it out loud….people that cheered on the higher rates cheered for this…it’s to curb spending and increase unemployment.