Shoppers turn to discount stores to find everyday wants, necessities as prices continue to rise
RALEIGH, N.C. (WTVD) -- Large retailer Dollar General has plenty of reasons to celebrate as the store posted a strong earnings report for the first quarter of 2025. In a Tuesday earnings call, CEO Todd Vasos said the company saw net sales increase by 5.3 percent to $10.4 billion.
In the call, Vasos said shoppers continued to frequent the store and cited, "Consumer spending could be pressured by tariff-related price increases."
In a press release, the company, which operates more than 1,100 stores in North Carolina, only behind Texas and Georgia, also said it is "well-positioned to serve our consumer in a variety of economic environments."
Several shoppers told ABC11 they spend their money at Dollar General due to its convenience in the community and prices.
"I don't need a whopping bag of candy for $3. I can go get a bag of candy that's a little small Hershey's bar for $1.25," said Kaye King. "It's cheaper than paying for a large bar I don't need. Some prices are lower than others."
In Franklin County, shopper Yuriana Galvez said she buys household essentials at her local Dollar General and enjoys the deals they offer through the mobile app and via coupons.
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"It's pretty relieving actually," she said. "I'm not just stressed about overspending. It's a lot more convenient and affordable."
Vasos said that according to a survey, his stores are seeing more middle and high-income earners spend their money at his locations.
"We believe these behaviors suggest that higher income customers are looking to maximize value while continuing to shop for items they want and need," said Vasos on the earnings call.
Meanwhile, North Carolina State University economics professor Michael Walden said this type of consumer behavior is not unusual.
"I'm not surprised at all this phenomenon is happening. It happens all the time that people tend to react and being more conservative in their spending, more frugal in their spending," said Walden. "And obviously that benefits some stores and hurts other stores."
Dollar General said it plans to open 575 stores in the U.S. in 2025.
