new York
Cnn
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The financial situation of low -income Americans has worsened in the past year and more buyers are without basic necessities.
This is the disturbing message from Dollar General, which sells cheap items and is therefore considered a bell tower for the health of low -income and average income buyers. Dollar General’s “main customers” earn less than $ 40,000 per year, and the channel has more than 20,000 stores, mainly in rural areas.
“Our customers continue to point out that their financial situation has worsened in the past year because they have been negatively affected by current inflation,” CEO General Dollar General, Todd Vasos said on Thursday. “Many of our customers report that they have only enough money for basic essentials, some noting that they had to sacrifice themselves even on the necessities.”
Inflation cooled In February for the first time in five months, but housing, health care and other costs remain high and reproduce customer budgets.
Dollar General said that its sales in stores open for at least a year only increased 1.2% in the last quarter, as less of its main customers visited to shop for “current financial pressures”.
At the same time, Dollar General sees average income consumers negotiate in stores in stores in recent weeks. It is a sign of the financial pressure on the Americans who make a little more money.
Dollar General also said that President Donald Trump price On imported goods, can also harm consumers’ demand and bring the company to increase prices – the maintenance of its customers even more.
The company said it was “well positioned” to mitigate the impact of prices, as in 2018 and 2019, although it increased prices and then compensate for the prices.
Many companies note a slowdown in consumers between income levels due to inflation, prices and a wobbly stock market. In a Interview with Fox News Trump refused to exclude the possibility of a recession on Sunday, contributing to a Stock market sale this week.
Delta airlines has reduced its profit prospects Monday, warning that the deterioration of the confidence of companies and consumers affects travel demand.
But low -income customers, and retailers who welcome them are the most vulnerable to inflation and economic changes.
Between September 2023 and September 2024, high income households increased spending by 12%, while households in the working class and the middle class decreased their expenses during the same period, according to Moody’s Analytics.
Kohl (KSS) said on Tuesday that sales could drop up to 6% this year, sending its shares decreasing by 25%. Economic uncertainty has wreaked havoc low -income consumersKohl CEO Ashley Buchanan said an appeal on Tuesday with analysts.
Consumers who earn less than $ 50,000 per year are “quite limited,” she said, and “it’s also quite difficult, quite difficult” for customers earning less than $ 100,000 per year.