Dollar General faces declining traffic and rising prices

Dollar General's CEO, Todd Vasos, stated that the company does not expect economic conditions to improve in 2025. He noted that many customers are struggling financially and can only afford basic necessities due to ongoing inflation. In the fourth quarter of 2024, Dollar General saw a 1.1% decline in customer traffic, but a 2.3% increase in average transaction size. The company plans to close 96 stores this year, reflecting the challenging retail environment. Vasos emphasized the need for resilience among customers facing economic pressures. The company is monitoring potential impacts from government programs and tariffs that could further affect its operations.