The CEO of the discount store said Donald Trump’s tariffs could make essential items more expensive
A CEO of a discount store is the latest in a long line-up of businesspeople who are voicing concern over Donald Trump’s aggressive tariffs.
American shoppers are already grappling with sky-high grocery bills, and experts are warning that the situation could get even worse due to the president’s ongoing ‘trade war.’ Leading economists and key figures in the retail and agriculture sectors are sounding the alarm over the potential for further economic strain.
Todd Vasos, CEO of Dollar General, has raised concerns about a ‘deteriorating’ financial climate, worsened by inflation. The retail giant has seen a slight dip in store traffic, with a one percent drop in footfall, as revealed in their 2024 fourth-quarter earnings report.
In a recent report, Todd Vasos, CEO of Dollar General, revealed the tough reality many of their customers are facing. He said, “Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,” as reported by The Daily Mail.
Looking ahead to 2025, the outlook isn’t much brighter. Vasos emphasized that the company’s core customers are under increasing financial strain, now more than ever, and are seeking ‘value and convenience.’
The Dollar General boss is also sounding the alarm about the impact of President Trump’s stringent tariffs on imported goods, warning that prices on Dollar General products could rise as a result. Earlier this month, Trump imposed a 20% tariff on goods from China and 25% tariffs on products from Canada and Mexico.
Economists are predicting that the average American household could end up paying an extra $830 to $1,072 annually for groceries, as the US’ top three trading partners supplied nearly half (40%) of all imported goods last year. Mexico alone accounted for two-thirds of vegetables and nearly half of fruit and nut imports to the US in 2023. And it’s not just Dollar General bracing for a price hike—executives at Kroger and major retailers like Target are warning that customers will ultimately bear the cost.
When President Trump imposed tariffs during his first term, Dollar General raised its prices, and Vasos reassured investors that the company is ‘well-positioned’ to handle the impact this time around too.
“Given the already stressed financial condition of our core customer, we are closely monitoring these [tariffs] and any other potential economic headwinds, including any changes to government entitlement programs,” said Vasos.
Despite these challenges, the retail giant, with approximately 20,000 locations across the US, is still forging ahead. However, 96% of its stores—along with 45 of its pOpshelf locations—are closing due to financial pressures. While this represents less than 1% of its total store base, many of these urban locations have become increasingly difficult to operate.
Even with the closures and rising costs, Dollar General plans to expand its customer base by growing its delivery service to up to 400 stores.
