Dollar General hurt by deflation, Wal-Mart & food stamp decline

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Dollar General, like Wal-Mart, has made price investments

Dollar General Corp.’s disappointing results Thursday can be attributed to a few factors, including deflationary forces, a decline in food stamp benefits, and, according to analysts, price investments from Wal-Mart Stores Inc.

Dollar General DG, -4.97% expanded its analysis of the impact of deflation beyond the “commodity cost of milk and eggs… to average unit retail price deflation,” said the company’s chief executive, Todd Vasos, on the Thursday earnings call, according to the FactSet transcript. The company found that the impact was greater in the third quarter than the second.

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