US retailers have reported a trend of customers cutting back on non-essential items due to financial constraints, with many struggling to afford basic necessities.
According to Dollar General CEO Todd J. Vasos, the company’s sales exceeded expectations in its latest quarter, driven by an increase in budget-conscious shoppers who are trading down to cheaper alternatives within the same category. Meanwhile, Walmart CEO Doug McMillon noted that consumers are buying smaller pack sizes towards the end of the month, indicating a decrease in disposable income.
The trend is reflected in sales data from convenience stores, which fell 4.3% over the past year, according to market-research firm Circana. Sales representative David Guerino attributed this decline to consumers’ inability to afford luxury items. However, McMillon expressed optimism about consumer health, citing consistent growth over the last 12 months.
The outlook for US retailers remains uncertain, with stock market fluctuations and tariff fears potentially leading to reduced consumer spending. As a result, it will be essential to monitor these factors to understand their impact on the retail sector.
Source: https://www.axios.com/2025/03/13/walmart-dollar-general-tariffs