CompetitionWalmart's market share gains will continue to pressure Dollar General, making a recovery very tough.
Consumer DynamicsDollar General's core customers, who predominantly earn less than $35k annually, are experiencing pressures, leading to weaker sales than anticipated.
Financial PerformanceGross margin declined by 112 basis points year-over-year to 30% due to increased markdowns, inventory damages, unfavorable mix, and increased shrink.