Dollar General CEO Says Even $100,000 Earners Are Shopping Like They're Broke, While Company Posts Record Quarter

Dollar General CEO Todd Vasos told investors at Goldman Sachs' Global Consumer and Retail Conference on Tuesday, September 15, that financial stress has spread well beyond the chain's traditional low-income customer base.

"Even that middle to upper-middle is acting more like a lower-income shopper these days," Vasos said, according to a transcript published by Seeking Alpha. He classifies households earning $100,000 or more as "high income" customers, and said they now show the same behavior pattern as everyone else once gas prices approach or cross $4 a gallon: shoppers stay closer to home, visit stores more often, and buy less each trip.

ZeroHedge reported that gasoline is running above $4 a gallon nationally and diesel above $6 a gallon, and tied Vasos's comments to what it called a broader "fuel crisis." That framing comes from ZeroHedge's own reporting; no other source reviewed here independently verified those national price figures. Vasos himself did not cite a specific current national average in the transcript. He described a behavioral threshold his company has tracked for years.

ZeroHedge also reported that Jefferies food analyst Scott Marks flagged new pressure on convenience-store customers in August as gas and diesel prices climbed, and that Senate Majority Leader John Thune raised the idea of diesel export restrictions this week as the Trump administration looks for ways to bring fuel prices down ahead of the midterms. ZeroHedge noted U.S. refining capacity is already running near 98%, and that it remains unclear whether the administration will pursue a federal fuel tax suspension.

The trade-down is showing up in the numbers

The stress Vasos described isn't new. On Dollar General's fiscal second-quarter earnings call on August 27, executives said "trade-in from customers earning $100,000 or more continued across consumable and nonconsumable categories," according to a transcript published by TradingKey. That same call showed net sales up 5.2% year over year to $11.3 billion, same-store sales up 3.5%, and diluted EPS up 33% to $2.48. Tariff refunds, after reinvestment, added roughly $0.25 to EPS.

Dollar General raised its full-year outlook after that quarter, now projecting sales growth of 4.0% to 4.3% and EPS of $7.80 to $8.00. The company also plans to resume share buybacks in the current quarter, targeting up to $700 million in repurchases in the second half, funded with cash on hand.

Vasos is describing a squeezed consumer. At the same time his company's own results show traffic growth, basket growth, and a 29.2% jump in operating profit. A retailer built around trading customers down to cheaper options tends to benefit when customers trade down. Both facts came from Dollar General's own disclosures.

The $1 price point is back in fashion

According to a report from couponsinthenews dated September 3, Dollar General now carries more than 2,000 items at or below $1 across its more than 21,000 stores, and sales in its dedicated "Value Valley" sections rose 16% over the prior quarter. "The consumer is relying more and more on that $1 price point," Vasos said, according to that report. "Even in that middle and upper-middle income level, they're actually moving to a lot of these $1 price points, too."

Dollar Tree, which abandoned its namesake $1 price years ago in favor of a $1.25 base, brought back a selection of $1 items for a 40th-anniversary promotion this summer and is now considering making it permanent. "When we can offer a $1 item and still deliver the value and economics we're looking for, we'll absolutely do that," Dollar Tree CEO Michael Creedon told investors, per couponsinthenews. Family Dollar has also rolled out a rotating set of $1 "WOW" items.

Separately, Retail Dive reported that Dollar General is among several chains, alongside Gap, Ulta Beauty, and Kohl's, investing in AI tools for supply chain and customer experience during the back half of 2026, part of an industry-wide push Bain & Co. partner Aaron Cheris said every retailer now feels pressure to pursue for its board and investors.

ZeroHedge reported that Thune's diesel export restriction idea surfaced this week and that the administration is weighing refining capacity measures, but no policy has been announced and no timeline has been set. Dollar General's next earnings report, covering fiscal Q3, will show whether the trade-down accelerates, plateaus, or reverses once the holiday season and any federal fuel action play out.