Dollar General Gets Aggressive On Price

After a disappointing second quarter, Dollar General is taking steps to boost sales, according to CEO Todd Vasos.

Dollar General saw a sales growth of just 0.7 percent a share in the second quarter of 2016, compared to a forecast of 2.6 percent.

“[T]he 0.7% 2Q16 comp gain was [Dollar General’s] weakest same store sales performance in over 10 years dating back to a Q4 2015, when it posted a 1.6% decline,” Retail Metrics analyst Ken Perkins wrote in a note to clients Thursday, according to Retail Dive.

Vasos said that Dollar General understands and aims to target the low-income consumer who might not have a lot discretionary income to spend.

“As for our core consumer, we operate with the reality that it is always challenging for her to stretch her budget given the pressures on her income and spending,” Vasos told Retail Dive. “We have seen an ongoing contraction in core consumer all out with retail spending as reflected in the Nielsen Panel data.”