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Dollar General CEO says consumers making $100,000 a year don't feel high income anymore
fortune.com • • business
Key Points:
- Inflation since the COVID pandemic has significantly reduced the purchasing power of $100,000 incomes, leading even higher earners to seek bargains at discount retailers like Dollar General and Walmart.
- Dollar General CEO Todd Vasos noted that middle to upper-middle income shoppers are behaving more like lower-income customers due to sustained inflation and rising costs, including gas prices now averaging $4.476 per gallon.
- Rising expenses in energy, utilities, vehicles, insurance, food, and caregiving are squeezing budgets across income levels, with many six-figure earners feeling financial pressure despite their earnings.
- Consumers remain resilient primarily because of steady employment, and Dollar General’s low-priced items, many under $1, provide critical affordability in the current economic climate.
- Surveys and expert analyses suggest that traditional income thresholds for financial security are outdated, with some arguing that the real poverty line is closer to $140,000 due to the high cost of living.
