Dollar General Plans to Pass on Some Savings to Consumer

Dollar General Corp. said deflation is beginning to show up in discretionary categories, and in some cases the company plans to pass this on to customers with lower prices.

The discount retailer largely serves lower-income shoppers who in recent years have been hit with higher costs for goods ranging from clothing to groceries. This has made maintaining prices, which for many products are $1 or less, a challenge for Dollar General and competitor Dollar Tree Inc.