Dollar General Surges as Discount Retailers Benefit from Value-Seeking Consumers
Dollar General shares rallied 11% Thursday after posting third-quarter earnings that crushed estimates, signaling resilient demand from budget-conscious shoppers. The discount retailer reported $10.65 billion in revenue with same-store sales climbing 2.5%, while EPS of $1.28 far exceeded the $0.93 consensus.
CEO Todd Vasos noted 'disproportionate growth' from higher-income households during the earnings call, yet emphasized low-to-middle income consumers remain 'stretched'—driving sustained demand for value-oriented retail. The trend mirrors Walmart and Dollar Tree's recent outperformance, as inflation-weary shoppers trade down across income brackets.
Retail's new reality crystallizes: when wallets tighten, discounters win. Dollar General's stock surge—outpacing the S&P 500—reflects this fundamental shift in consumer behavior more than transient market sentiment.
