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Discount stores tend to perform well amid an economic turmoil – as seen in the early months of the COVID-19 pandemic as well as the 2008 financial crisis – as cash-strapped consumers seek cheaper alternatives to ease the burden on their wallets.
Dollar General, which typically sells products for $10 or less, has cashed in on the surge in store traffic by doubling down on its fresh produce and frozen food offerings that has also helped the chain attract a slightly higher-income consumer cohort.
The company now expects fiscal 2022 same-store sales to rise 4% to 4.5%, compared with its prior forecast for 3% to 3.5% growth.
Dollar General said same-store sales rose 4.6% in the second quarter, beating analysts’ estimate for a 3.9% increase, according to Refinitiv IBES data.
