Dollar General's leadership reported in Q1 2026 earnings that the company's core customer base is financially squeezed — they're cutting back on groceries and household goods, driven partly by high gas prices eating into their budgets. This matters because DG's entire business model depends on these low-income shoppers; if they keep pulling back on essentials, it signals broader economic stress in households earning under $35k annually. The company did beat analyst expectations this quarter and raised guidance, but that growth came from wealthier shoppers trading down to discount stores — suggesting a bifurcated market where the poorest customers are actually getting worse off even as DG's overall sales grow.