U.S. dollar stores expect higher sales as inflation turns shoppers frugal

(C) Reuters. FILE PHOTO: A view of a Dollar General store in Mount Rainier, Maryland, U.S., June 1, 2021. REUTERS/Erin Scott/File Photo

(Reuters) – Dollar General Corp (NYSE:DG) raised its sales forecast for the year on Thursday, as more Americans turn to discount store shopping with inflation at a four-decade high.

The discount store operator forecast fiscal 2022 same-store sales to increase 3% to 3.5%, compared with its prior outlook of an increase of around 2.5%. Analysts on average were expecting an rise of 2.3%, according to IBES data from Refinitiv.

Dollar General raises annual sales forecast