Dollar General has reported a 3.4 per cent increase in first-quarter sales, driven in part by higher-income shoppers seeking value amid rising costs. The discount retailer’s CEO, Todd Vasos, said that customers earning $100,000 or more are “trading in” to the chain to save money.
Soaring petrol prices, exacerbated by the Iran war’s impact on oil shipping, have played a key role in this shift. The national average for a gallon of petrol surpassed $4.50 in May, and while it has since fallen to $4.26, prices remain more than $1.25 above pre-war levels. Vasos noted that when petrol prices hit and sustain above $4, higher-income shoppers begin to trade down.
The company’s $1 price point for certain items has been a “real saviour” for its core customers, Vasos added. Meanwhile, competitor Family Dollar announced the closure of around 350 stores over the past ten months, with plans to shut up to 1,000 underperforming locations. Dollar Tree also saw sales rise 6.7 per cent year-on-year, though this lags behind the 10.7 per cent growth seen in 2025.
Discount stores have gained prominence as inflation surged from 2.7 per cent in February to 3.8 per cent in April, a three-year high. Consumers have responded by cutting streaming services and, in some cases, opting out of employer-sponsored healthcare to save money, with many turning to Walmart and discount chains like Dollar General.
