Dollar General Stock Tumbles After Earnings Fall Short

[Lynyrd Skynyrd]

Dollar General (DG) stock has plummeted by over 25% in pre-market trading after the discount retailer missed its profit and revenue estimates for the second quarter. The chain also cut its full-year outlook, with CEO Todd Vasos citing "financially constrained" consumers as a major factor for the store's overall softening sales figures.
https://finance.yahoo.com/video/dollar-g...17393.html

This is an economic red flag when the poor can't afford groceries at Dollar General.

One alternate explanation is that 25% of their customers are finding better values elsewhere. The dollar stores have higher profit margins than regular supermarkets,  especially when they have been charging more for smaller packages. The dollar stores also often sell suspect food from China.

People that have transportation and the grocery budget to afford larger quantities can shop at discount supermarkets and get better value.

[Maxmars]

The only thing that makes me cautious when I go to the Dollar General, or the Dollar Store, or similar place, is the big mystery about the supply chain.

Where do the products come from, how long have they been shipped around... products that have been "shed" by large retailers get shunted to dollar store discount offerings... and while much of it is cheaper, it is not necessarily 'better.'  For example buying a 12-pack of pens and half of them are dried out, or buying a package of sponges that break up and crumble as you use them...