John Spry, professor of finance at the Opus College of Business, talked to KSTP about the potential effects of tariffs on Dollar General. The retailer has seen record-breaking sales and increased profits, but voiced concerns about the future.
From the story:
The company says its operating profit increased 5.5% to $576.1 million.
The retailer released a statement, which said in part, “While the company’s first quarter 2025 financial results exceeded its internal expectations, uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior.”
“There’s a lot of uncertainty,” notes John Spry, a finance professor at the University of St. Thomas. “There’s a betting market for recessions.”
Spry says for Dollar General, the issue is magnified because of where the products it sells are manufactured.
“Stores like Dollar General buy about 40% of what they sell directly as an import that come over on a container ship, from, usually Asia,” he explains. “The cost of their inventory is a big question mark, because you don’t know what the tariffs are and don’t know if the courts will allow the tariffs.”
Spry says the good news for the retailer is that its stores are seeing more customers, beyond those looking for deals, or who may be low-income earners.
