Dollar General CEO says even $100K earners feel squeezed by inflation, gas prices

### Dollar General CEO Says Inflation Is Putting Pressure on Even Six-Figure Households

Persistent inflation and elevated gasoline prices are putting financial pressure on a broader range of American households, with even consumers earning six-figure salaries becoming more cautious about their spending, according to Dollar General CEO Todd Vasos.

Speaking at the Goldman Sachs Global Consumer and Retail Conference, Vasos said the retailer is seeing changes in shopping behavior across income groups rather than only among the lower-income consumers traditionally associated with discount stores.

Vasos said households in middle- and upper-middle-income brackets are increasingly adjusting their purchasing patterns as the cost of necessities remains elevated. He described the pressure as widespread across different income levels.

Dollar General has long monitored gasoline prices as an indicator of how its core customers may change their shopping habits. Vasos said the retailer has historically observed a noticeable shift when gasoline prices move above roughly $4 per gallon.

At that point, customers tend to make more frequent trips to stores while spending less on each visit. Rather than making larger shopping trips, shoppers may purchase only the products they need immediately and return to stores several times during the month.

The trend can also encourage consumers to choose retailers closer to their homes in an effort to limit fuel expenses. Dollar General has an extensive store network, with Vasos saying approximately 75% of the U.S. population lives within five miles of one of its locations.

The company considers consumers earning $100,000 or more annually to fall into its higher-income customer category. Vasos said that even these households are increasingly feeling financial pressure from inflation, gasoline costs and other household expenses.

Despite the challenges, Vasos characterized the American consumer as broadly resilient. He said employment remains an important factor supporting household finances and that consumers who continue to have jobs and sufficient income generally find ways to adjust their spending.

For Dollar General, those adjustments could bring more customers into discount retail as households across income brackets look for ways to control expenses.

The retailer continues to offer a wide range of low-priced products, including roughly 2,000 items priced at $1 or less. Such products can become more attractive to consumers attempting to reduce the cost of routine purchases.

The broader financial pressures facing American households are reflected in other consumer research as well. A Harris Poll survey found that higher incomes do not necessarily translate into a sense of financial security for many Americans.

The survey reported that nearly one-third of people earning six-figure incomes said they felt financially stretched. A majority also viewed a $200,000 annual income as providing financial stability rather than significant wealth.

Rising fuel prices can add to those pressures by increasing transportation costs throughout the economy. Higher gasoline and diesel prices can raise the cost of moving goods, contributing to expenses for retailers and consumers alike.

As household budgets become tighter, some consumers are also turning to credit cards and other forms of financing to cover everyday expenses. Buy now, pay later services have increasingly been used by consumers across income groups, including households earning more than $200,000 annually.

The combination of inflation, fuel costs, housing expenses and consumer debt has contributed to a broader shift in how Americans assess financial comfort.

For discount retailers such as Dollar General, the changing behavior presents both a challenge and an opportunity as consumers who previously may not have relied heavily on discount stores begin paying closer attention to prices.

Vasos said the company expects consumers to continue adapting their purchasing decisions as economic conditions evolve, with proximity, convenience and low prices remaining important considerations for shoppers facing higher everyday costs.