Dollar General (DG) , which has over 20,000 stores across the U.S., recently spotted a concerning shift in customer behavior.
In the discount retailer’s first-quarter earnings report for 2025, it revealed that its same-store sales increased by 2.4% year-over-year during the first few months of this year. However, according to recent data from Placer.ai, the average number of customer visits per Dollar General location remained flat.
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During an earnings call in June, Dollar General CEO Todd Bezos said the company recently conducted a survey that revealed its core customers are “financially constrained.”
Related: Dollar General suffers major boycott from customers
“During our recent customer survey work, 25% of DG customers reported having less income than they did a year ago, and nearly 60% of our core customers noted that they felt the need to sacrifice on necessities in the coming year,” said Bezos. “While our core customer remains financially constrained, we have seen increased trade in activity from both middle- and higher-income customers.”
He also warned that President Donald Trump’s tariffs (taxes companies pay to import goods from overseas) could further impact consumer spending, as the trade policy could result in higher prices in Dollar General stores.
“The tariff landscape remains dynamic and uncertain, and there is a higher degree of variability in potential outcomes around tariff-related impacts, including on consumer spending, cost of goods, and the supply chain,” said Bezos.
Dollar General makes unexpected move to attract frugal customers
Amid this significant threat to sales, Dollar General has announced that it is cutting prices on over 1,000 essential items for the entire summer after it previously reduced prices on 200 products, according to a recent press release.
Dollar General said the price cuts will impact 40% of the items in categories such as “food, health, and wellness products, beauty and personal care items, and household cleaning supplies.”
Related: Dollar General CEO flags alarming shift in customer behavior
In addition to these price cuts, Dollar General is launching its “7 Days of Savings” sales event, which will offer customers discounts of up to 50% off one featured item each day between July 6 and July 12.
The discount retailer will also offer back-to-school deals this summer, such as 30% off digital coupons for teachers. Dollar General customers can also expect summer promotions that include weekday $5 off $25 digital coupons.
“With kids home from school, there’s often additional meal prep and a desire for additional activities,” said Chief Merchandising Officer Emily Taylor in a press release. “Our discount offers are designed to enhance affordability on the items our customers need and want.”
Dollar General faces major threats
The move from Dollar General comes as it faces a major boycott from consumers for cutting its diversity, equity, and inclusion policies.
It also follows one of its top competitors, Target, deciding last month to make back-to-school shopping “more affordable” for consumers by “maintaining last year’s prices on must-have supplies.”
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Also, Target kept over 1,000 back-to-school items under $5 and will roll out discounts for students and teachers through its Target Circle app.
It is no surprise that retailers are launching generous deals this summer to attract price-conscious shoppers. Many consumers are battling a higher cost of living and worry about tariffs wreaking havoc on their finances.
A recent survey from market research company Numerator found that 88% of consumers are concerned about the impact of tariffs, while 64% are worried that tariffs will raise prices on everyday goods.
Also, 81% of consumers are adjusting their finances or shopping habits in response to tariffs, which includes delaying nonessential or expensive purchases, buying fewer imported goods, searching for sales and coupons, and switching to shopping at lower-priced retailers and discount stores.
Related: Target announces generous offers to win back customers
