Consumer sentiment hits record low as shoppers stay price-conscious

Dollar General associates are likely to see smaller baskets and more price checks as a record-low consumer sentiment reading keeps shoppers locked on value. The University of Michigan’s preliminary May index slipped to 48.2 from April’s 49.8, while current conditions fell to 47.8 from 52.5, a sign that customers felt worse about the present even as expectations edged up to 48.5.

About one-third of consumers spontaneously mentioned gasoline prices, and about 30% mentioned tariffs. Joanne Hsu said the reading was essentially unchanged because current conditions worsened even as expectations improved. “Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump,” she said. Year-ahead inflation expectations eased to 4.5% from 4.7% in April, and long-run inflation expectations dipped to 3.4% from 3.5%.

For workers, the message is straightforward: the shopper walking into a Dollar General is more likely to look for essentials, compare shelf tags and hesitate before adding extras to the cart. That can mean more questions about private-label options, more scrutiny of promotions and more pressure on whoever is covering register and floor at the same time to explain value fast. Hsu said the May reading matched the trough reached in June 2022, and the University of Michigan said it was, in the preliminary report, the weakest consumer sentiment reading ever recorded in the survey’s history.

Dollar General has benefited when shoppers trade down. The company reported on March 12 that fiscal fourth-quarter 2025 net sales reached $10.9 billion, up 5.9%, and same-store sales rose 4.3% as customer traffic increased 2.6% and average transaction amount rose 1.7%. Todd Vasos has tied that performance to the chain’s mix of value and convenience in rural communities, and the company has said fiscal 2026 same-store sales are expected to grow 2.2% to 2.7%.

That makes execution on the sales floor more important, not less. Clear pricing, stocked basics and quick answers about deals matter most when shoppers are cautious, because a consumer base this selective can turn a missed sign, an out-of-stock item or a confusing promotion into a lost basket. For Dollar General workers, weak sentiment does not mean customers stop coming in. It means every trip becomes a tighter, more deliberate test of whether the store delivers value at the shelf.