Dollar General is sounding the alarm on the economy

[Yo_Mama_Been_Loggin]

When the economy bites, dollar stores are well positioned to thrive, but even Dollar General's CEO is preparing for the worst this year.

In a call with investors on Thursday after reporting earnings, CEO Todd Vasos explained that the store's core customer is "feeling a little less competent."

"We're positioning ourselves for the back half of the year for a weaker consumer," he said, and to cater to this consumer it will be offering more in-store promotions.

This follows increased promotions at the end of 2018, which factored into the company's profits during the fourth quarter taking a hit. While same-store sales were up 3.2% overall for the quarter, gross profit dropped more than expected thanks to a higher level of markdowns.

-snip-

Analysts are expecting a potential recession to hit the US this year. Earlier this month, Business Insider reported that the likelihood of a major contraction in the economy had increased substantially since December, citing analysis from UBS.

https://www.msn.com/en-us/money/companies/dollar-general-is-sounding-the-alarm-on-the-economy/ar-BBUPaOy?li=BBnbfcL

#TrumpSlump

[House of Roberts]

1. Not surprising given the rise in fuel prices.

Cat food recently went up about ten cents for the 3 ounce cans of Fancy Feast, and similar sized competitors.

[lame54]

2. Dollar General is not a dollar store...

They are actually quite pricey

[flygal]

7. This! And they are not very nice inside. Crowded aislles and not clean at all.

The one near me looks so sketchy. I will never go in. It doesn't surprise me they are doing poorly. They kind of deserve it not keeping their stores up.

[bitterross]

9. Not really the point of the story.

I think the takeaway is we're headed for a crappy last half of the year. While that sucks for people, I'm glad that it will be the lead into the election year. The Trump economy sucks should be on every Democrat's tongue.

[lame54]

11. Actually...

It implies the slowing economy will have more people shopping dollar stores

Dollar General is often mistaken for a dollar stores like Dollar Tree and the 99 cent store

[marybourg]

3. They may have to become

$.50 General

[kimbutgar]

4. Gymboree, Payless shoes and Charlotte Russe going out of business in the Malls

I went shopping to get a birthday present the other day and going out of business signs for three of these stores in my local mall. Now if the economy was booming like the orange maggot says why are these stores closing? Sears and JC Penney look they are just hanging on. It’s not that people are buying online it’s that they are careful in spending the little money they have. The cost of living is going up and one party is totally against raising the minimum wage. Yet those struggling in the red states will vote repuke because of the scary socialism which might actually help them!

We live in crazy times with a lot of stupid people who support the orange turd.

[rurallib]

10. two of those were victims of vulture (or Mitt Romney) capitalism

not sure about the third, but I wouldn't be surprised.

It seems to be a very contagious disease.

[kimbutgar]

12. Yes Lbo's, where they take the cash assets out of a company, saddle it with loans, walk away with

Corporate management “ retention bonuses “ and bankrupt the company. Romney is the ultimate vulture. kB Toys was his early victim.

[UpInArms]

5. In some small towns in rural America

They are the only store ... variety and grocery ... for a 30 to 45 mile radius

[shanti]

6. A lot of made in China junk

that's probably the reason. That stuff has gone up. Same as Dollar Tree and 99 Cent store.

[Kaleva]

13. I shop at the Dollar General at least once a week and I don't see that.

[FloridaBlues]

8. Perhaps they built too many stores. There's one every several blocks in fl!