1139 ET - Dollar General has seen more growth from its consumables category than its nonconsumable categories as discretionary spending has softened, which in turn is weighing on profitability, CEO Todd Vasos says on a call with analysts. "The lower margin sales have pressured our overall gross and operating margins," he says. Consumables sales mix has climbed to 82%. Dollar General would like to get that figure back to about 80% and intends to increase nonconsumable mix by at least 100 basis points by the end of 2027, the CEO says. To do so, it will try to build on its brand partnerships, upgrade rotational home assortments, reallocate space in the home category and inject some newness into its product displays, Vasos says. (dean.seal@wsj.com)
(END) Dow Jones Newswires
March 13, 2025 11:39 ET (15:39 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.