The news: Dollar General’s low prices helped it grow penetration among shoppers of all income brackets in 2025, and that trend is poised to continue this year as value takes precedence and rising gas prices threaten purchasing power and consumer sentiment.

By the numbers: Dollar General’s same-store sales rose 4.3% YoY in Q4 2025, the fastest pace in three years, thanks to an uptick in both traffic (up 2.6%) and average transaction amount (up 1.7%). Notably, the retailer reported growth in discretionary categories like apparel, home products, and seasonal items, as well as in consumables.

Shoppers were especially responsive to the retailer’s dollar offerings.

• Comparable sales for Dollar General’s “Values Valley” selection, a rotating assortment of 500 items priced at $1, soared 17.6%, far outpacing total comparable sales growth.
• Sell-through rates were highest in the quarter for seasonal items at the $1 price point, reinforcing shoppers’ fixation on value.

Zoom out: Despite the uptick in momentum, Dollar General issued a relatively cautious outlook for the year ahead, joining retailers such as Walmart, Carter’s, and Bath & Body Works in adopting a more conservative stance. The company expects same-store sales to grow 2.2% to 2.7% this fiscal year, a slowdown from 3% growth notched in 2025.

That could reflect concerns about the health of its core lower-income customer, who remains under greater financial pressure from slowing wage growth and the rising cost of living.

• February marked the first time that spending growth among lower-income households surpassed wage growth since March 2022, according to Bank of America data—although that could reflect a temporary fiscal boost from tax refunds.
• After-tax wage growth was just 0.6% in February for lower-income households, compared with 4.2% for higher-income ones, the largest gap since BofA began tracking the metric in 2015.

Implications for retailers: Deepening uncertainty will benefit Dollar General, as rising gas and grocery prices drive consumers to value-oriented retailers that can offer sharp pricing on everyday essentials.

While pressure on its core consumer will persist in 2026, the retailer is betting that weakness there can be offset by its growing penetration among higher-income shoppers, who are responding favorably to its convenient delivery options and upgraded stores.

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