Dollar General Corp. reported higher-than-expected sales for its fourth quarter, despite concerns over high prices affecting lower-income customers. The company’s CEO noted that consumers are increasingly switching to cheaper brands, a trend seen among both low- and middle-income shoppers in recent weeks.
In a surprise move, shares of the discount retailer surged after the announcement, indicating investor confidence in the company’s ability to weather economic pressures. Dollar General attributed its sales growth to strength in its consumables category, which includes staples like food, health products, and pet supplies. The company offset weakness in seasonal and home-goods segments.
The latest earnings results suggest that lower-income customers may not see relief from high prices this year, as consumers opt for more affordable alternatives. This trend is a concern for policymakers and consumer advocates, who fear it could exacerbate income inequality.
Source: https://www.marketwatch.com/story/dollar-generals-stock-climbs-as-sales-beat-with-fewer-shoppers-spending-more-95f4115a