Why are people buying less stuff at the dollar store?

Dollar General is the fastest growing retailer by store count which is very revealing about the state of the US economy, but its customers are getting hit hard by inflation and the cost of living, which means they are spending less money, even at the dollar store. The core customers are purchasing more low margin essential items including food called consumables versus higher margin items like seasonal, home, and apparel. There has been an increase in the number of higher income shoppers.
On June 1st, Dollar General’s stock plunged 20% due to lower-than-expected revenue and profit. Same store sales grew less than half of what analysts expected. Dollar General has been facing labor issues. It was fined more than $21 million by OSHA for safety issues. Employees at Dollar General are not paid very much.
Americans are getting squeezed by inflation. About 1/3rd say they are barely getting by. Low income consumers have been hardest hit, and it’s to the point where its impacting how much they purchase at the dollar store.
It is concerning when even the dollar stores are having issues.
Works Cited:
https://www.ft.com/content/060033af-ad25-468e-a38e-6f6bdc5d563c
https://www.wsj.com/articles/dollar-general-no-longer-downturn-proof-293530e2?mod=Searchresults_pos1&page=1
https://www.cnbc.com/2023/06/01/dollar-general-dg-q1-earnings-report-2023.html
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