Dollar General has seen growth in a key customer area, driven by the challenging economy.
Citigroup analyst Paul Lejuez asked about those wealthier customers during the chain’s first-quarter earnings call. “You talked a bit about the trade-in customer in the $100,000-plus range
We hear a lot of companies talk about gaining customers trading down in that income level. I’m curious where you think your customer is coming from,” he asked. Dollar General CEO Todd Vasos was direct in his answer. “I would tell you that the trade-in is really coming from the same areas that we’ve seen over the years at an accelerated rate right now.
And that’s really from the drug and the grocery side of the business is where we really see the most trade-in. That continues,” he said. He noted that Dollar General has continued to add customers in the $100,000-plus income range “and that continues as we moved into Q2 at an accelerated rate,” he added.