DOLLAR General’s CEO has said a recent trend in consumer behavior appears to show American shoppers are struggling.
He said a salary once seen as a lifelong dream now isn’t even enough to confidently bankroll basic needs.
Speaking at the Goldman Sachs Global Consumer and Retail Conference, Todd Vasos said gas prices, utility bills, used cars, and food have all lightened the wallets of his shoppers.
He said the issue has gotten so severe that Americans making $100,000 a year aren’t feeling financially stable.
“I would tell you, what we’re hearing more and more from them is ‘I don’t feel like I’m higher income at $100,000 any longer,’ because of all of the headwinds that I just mentioned,” Vasos said, according to Yahoo!.
“So we believe at Dollar General, we’re in a really good position to service all of the different demographics of what we have.”
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The typical Dollar General customer makes $45,000 or less a year and relies on the brand for its bargain bin prices, Vasos said.
But with the average price of gasoline creeping up to $4.476 a gallon, more middle class Americans are turning to discount brands.
“Having 2,000 items at or below $1 is very meaningful for the consumer, always has, but especially in this environment,” Vasos said.
Dollar General isn’t the only brand seeing the chain, as Walmart has also reported seeing wealthier shoppers crossing its threshold for savings.
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The retail chains have been able to hold onto customers through the market changes because they’re staying employed, Vasos explained.
Meanwhile, Dollar General has been facing bans in some US cities critical of what the brand is actually offering their communities.