Why Dollar General is finally feeling slower consumer spending

Even the US's largest chain of dollar stores is feeling the pinch as consumers pull back on spending.

Dollar General's typical consumer"is under greater pressure than we have seen in quite some time," CEO Jeffrey Owen said on the company's first-quarter earnings call on Thursday. The retail chain cut its outlook for same-store sales for all of 2023. It also said that earnings for the year will be flat or down up to 8% over last year. Dollar General previously said that it expected earnings to rise as much as 6% for the year.

The reason for the change: Dollar General's already budget-conscious shoppers are pulling back. Owen said that tax refunds were lower than expected. That gave Dollar General shoppers less fun money to spend than expected. As a result, many patrons drew down spending on discretionary items, a category that includes non-essential products like electronics and toys, Owen said. Instead, that money went to essential purchases like food and household goods. While Dollar General is expanding its selection of

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