Dollar General’s CEO is preparing for a weaker economy in 2019.
CEO Todd Vasos said on Thursday that the store’s core customer is “feeling a little less competent” than 2018. “We’re positioning ourselves for the back half of the year for a weaker consumer.”
The chain is still growing at a rapid rate. Having opened hundreds of stores in 2107 and 2018, it will be opening 975 more in 2019.
When the economy bites, dollar stores are well positioned to thrive, but even Dollar General’s CEO is preparing for the worst this year.
In a call with investors on Thursday after reporting earnings, CEO Todd Vasos explained that the store’s core customer is “feeling a little less competent.”
“We’re positioning ourselves for the back half of the year for a weaker consumer,” he said, and to cater to this consumer it will be offering more in-store promotions.
This follows increased promotions at the end of 2018, which factored into the company’s profits during the fourth quarter taking a hit. While same-store sales were up 3.2% overall for the quarter, gross profit dropped more than expected thanks to a higher level of markdowns.
“We proactively invested in promotional activity to drive traffic and …read more
Source:: Businessinsider – Finance