Dollar General attracts higher-income customers seeking value, and that shift has driven surprising growth in early 2025. The company reported a 2.4% increase in same-store sales during the quarter ending May 2. This growth beat internal expectations and highlighted a changing customer base.
According to CEO Todd Vasos, more middle- and upper-income shoppers are turning to Dollar General. These customers now make up the highest percentage of value-focused visitors in four years. While the core base remains cautious, the new group is shopping more often and spending more money per trip.
Notably, these customers are also buying more than basic goods. They are spending more on seasonal items, home products, and even apparel. This trend shows that Dollar General continues to meet needs across a wide spectrum of budgets.
To deal with tariffs, the company is adjusting its strategies. It now imports from more countries, which lowers dependency on China. Additionally, it negotiates price concessions with suppliers. When necessary, it redesigns products or finds lower-cost alternatives. As a last resort, it may raise prices slightly, though this is not preferred.
As a result of strong first-quarter results, Dollar General raised its forecast for the fiscal year ending January 30, 2026. It now expects same-store sales to grow between 1.5% and 2.5%. This also increase from earlier guidance shows growing confidence in the future performance.
CFO Kelly Dilts credited the results to the company’s value and convenience strategy. She believes that the strong performance sets the stage for continued success.
Clearly, Dollar General attracts higher-income customers seeking value, and this customer shift boosts long-term growth. As economic uncertainty continues, more shoppers are seeking affordable yet quality options.
In conclusion, Dollar General attracts higher-income customers seeking value, and this trend is reshaping the brand’s future.
For more business updates, visit DC Brief.
