Dollar General drops a bomb in the United States: it will directly impact prices

Summer arrives full of changes for American consumers, especially for those who rely on discounts to make their money go further. One of the retail giants has made an unexpected decision that could set a trend among competitors in the sector.

Dollar General, with more than 20,000 stores in the United States, has announced a price cut on more than 1,000 products throughout the summer. This announcement comes after detecting worrying signs among its customers: although comparable sales rose by 2.4% in the first quarter of 2025, store visits haven't increased. According to its CEO, Todd Vasos, a significant portion of its shoppers are in an increasingly tight financial situation.

Massive cuts for basic products

The company has confirmed that this summer, reduced prices will be seen on about 40% of its items within key categories such as food, health, beauty, personal care, and cleaning. The intention is clear: attract both its regular clientele and new shoppers looking to save. "Our customers are making sacrifices, even on basic needs," Vasos explained in a call with investors, "25% of them say they have less income than a year ago."

In addition to the price cuts, Dollar General is launching its "7 Days of Savings" campaign, with daily discounts of up to 50% between July 6 and 12. Back-to-school promotions will also be applied, such as digital coupons with a 30% discount for teachers. During summer weekdays, additional discounts will be offered with $5 off coupons for every purchase over $25, reports The Street.

Emily Taylor, chief merchandising officer, explained: "With kids at home, expenses increase, and our offers aim to make daily life easier for families." The company had already reduced prices on 200 products, and with this new wave of discounts, it seeks to position itself as the most affordable option in the face of inflation and tariffs.

A challenging context for the retail sector

The economic situation in the United States has caused consumers to adjust their shopping habits. A study by Numerator reveals that 88% of shoppers fear that tariffs will raise prices, while 81% are changing the way they spend. Many are delaying non-essential purchases and opting for cheaper chains.

The outlook becomes even more complicated with the possibility of the return of tariffs pushed by former president Donald Trump. "The tariff scenario is uncertain and could increase costs for both the consumer and the supply chain," Vasos warned. This situation threatens to make products more expensive in Dollar General stores and across the sector.

This tension is compounded by the recent controversy over cuts in diversity policies within the company, which has led to a boycott by certain consumer groups. Meanwhile, competitors like Target have announced similar measures to keep prices low on school products, making it clear that the battle for savings is in full swing.