In the competitive world of discount retailing, Dollar General Corp. is leaning into its namesake price point with renewed vigor. Chief Executive Todd Vasos recently highlighted that items priced at exactly $1 are outperforming the rest of the chain’s inventory, signaling a strategic pivot amid economic pressures on low-income consumers. This insight comes as the retailer navigates a challenging environment where shoppers are increasingly budget-conscious, opting for value over variety.

Vasos, who returned to the helm in October 2023 after a brief retirement, emphasized this trend during the company’s latest earnings call. According to a report from Business Insider, these dollar deals are emerging as a “secret weapon” for Dollar General, driving traffic and sales in an era of persistent inflation. The focus on $1 items isn’t just nostalgic—it’s a calculated response to data showing stronger demand for ultra-affordable essentials like cleaning supplies, snacks, and household goods.

Reviving the Dollar Legacy Amid Economic Headwinds
This emphasis on low-price leaders aligns with broader consumer shifts observed in recent quarters. Dollar General’s second-quarter 2025 earnings, as detailed in a transcript from The Motley Fool, revealed a 5.1% increase in net sales to $10.7 billion, bolstered by a 2.8% rise in same-store sales. Vasos noted that traffic grew by 1.5%, attributing much of this to value-driven purchases, including those $1 staples that resonate with core customers earning under $35,000 annually.

Yet, the strategy extends beyond mere pricing. The company is modernizing its approach, expanding digital initiatives and fresh grocery offerings to compete with giants like Walmart. A 2021 interview with Vasos, covered by Business Insider, foreshadowed this evolution, positioning Dollar General as a one-stop shop in rural and underserved areas where convenience is key.

Leadership Changes and Financial Realignment
Vasos’ leadership has been pivotal in stabilizing the company after a turbulent period. Following the abrupt departure of his successor, Jeff Owen, in 2023—as reported by CNN Business—Vasos stepped back in to orchestrate a turnaround. Recent moves include appointing Donny Lau as the new chief financial officer effective October 2025, succeeding Kelly Dilts, according to a press release from StockTitan. This transition aims to sharpen financial strategy, with Vasos serving as interim CFO in the meantime.

The retailer’s comeback plan, outlined in a Supermarket News article, emphasizes better inventory management and enhanced shopper interactions. By reducing self-checkout options and focusing on staff-assisted service, Dollar General has curbed shrink and improved margins, with gross profit rising to 31% in the first quarter of 2025.

Attracting a Broader Customer Base
Interestingly, this $1 focus is drawing in higher-income shoppers seeking deals amid economic uncertainty. A June 2025 update from Business Insider noted that delivery initiatives and low prices are attracting a “new and diverse” customer set, including those from households earning over $100,000. This diversification is crucial as core customers, per Vasos’ March 2025 comments in another Business Insider piece, are sacrificing even necessities due to tight budgets.

Expansion continues apace, with over 20,500 stores now operational, including a new location in tiny Hartly, Delaware, as per Supermarket News. Despite rising construction costs—up 40% in six years—Dollar General raised its full-year 2025 guidance, projecting 4.3% to 4.8% sales growth.

Outlook for Sustained Growth
Looking ahead, industry insiders see this $1 strategy as a linchpin for Dollar General’s resilience. By doubling down on affordability while innovating in groceries and digital, the company is positioning itself to weather economic volatility. Vasos’ track record, including a growth spurt during his prior tenure as noted in a 2022 Supermarket News report, suggests this approach could restore investor confidence and drive long-term profitability in a sector where value remains king.