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Dollar General forecasts tepid 2025 due to strained consumer spending

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Dollar General on Thursday forecast annual sales and profit targets below estimates, joining a growing list of retailers that have signalled a grim year as still-high inflation and economic uncertainty dent consumer spending.
Dollar General has forecasted a tepid outlook for 2025, attributing the cautious forecast to strained consumer spending. The discount retailer, which caters primarily to low-income shoppers, has noted a shift in consumer behavior due to economic pressures such as inflation and reduced government benefits. This has led to a decrease in demand for non-essential items, impacting the company's sales growth. Despite these challenges, Dollar General is focusing on cost management and operational efficiency to navigate through the economic downturn, while also planning to expand its footprint with new store openings. However, the company anticipates that the overall retail environment will remain challenging, with consumers prioritizing essential purchases over discretionary ones.

Read the Full Reuters Article at:
[ https://www.msn.com/en-ca/money/topstories/dollar-general-forecasts-tepid-2025-due-to-strained-consumer-spending/ar-AA1AQpcx ]