Dollar General (NYSE: DG) CEO Todd Vasos told the Goldman Sachs Global Consumer and Retail Conference that Americans earning six figures no longer behave like high-income shoppers.

Vasos explained that sustained inflation since the COVID pandemic has eroded the purchasing power of $100,000 to a degree that is fundamentally changing how those earners spend.

The comments came as the national average price of gasoline has climbed to $4.476 a gallon, up sharply from $3.189 a gallon one year ago, according to AAA.

President Donald Trump’s war on Iran has disrupted global oil markets, while the price of diesel has soared to $6.50 a gallon, making goods transported by truck increasingly expensive.

Vasos described Dollar General’s core customer base as those earning less than $45,000 a year, noting that this group dramatically shifts its shopping behavior once gas prices reach $4 a gallon.

When fuel costs spike, these shoppers tend to buy closer to home, visit stores more frequently, and purchase less on each trip, adapting to uncertainty week by week.

“But the interesting thing with this economy, because of the other sustained headwinds of inflation over the years that have passed, even that middle to upper middle is acting more like a lower-income shopper these days,” Vasos said.

Beyond energy, costs across utilities, new and used vehicles, insurance, food, and caregiving have all risen significantly, squeezing households at every income level.

“I would tell you, what we’re hearing more and more from them is ‘I don’t feel like I’m higher income at $100,000 any longer,’ because of all of the headwinds that I just mentioned,” Vasos added.

Dollar General sees its pricing model as a competitive advantage in this environment, with Vasos noting that “having 2,000 items at or below $1 is very meaningful for the consumer, always has, but especially in this environment.”

Walmart (NYSE: WMT) has previously reported that more affluent customers are shopping at its discount stores, a trend now extending further down the retail chain to deep discounters like dollar stores.

Vasos said consumer resilience remains intact largely because employment levels have held up, allowing shoppers to continue adapting despite persistent cost pressures.

The latest U.S. retail sales report supports that view, showing a better-than-expected 1.2% increase in August and a 1.1% gain when gasoline sales are excluded.

A Harris Poll survey found that 64% of six-figure earners said their income is not a milestone for success but merely the bare minimum for staying financially afloat.

Even those earning $200,000 or more have adopted financially cautious habits, with 64% using rewards points to pay for essentials and 50% using “buy now, pay later” plans for purchases under $100.

Michael Green, chief strategist and portfolio manager for Simplify Asset Management, published a widely circulated Substack post arguing that the real poverty line should be set at $140,000.

“If the crisis threshold, the floor below which families cannot function, is honestly updated to current spending patterns, it lands at $140,000,” Green wrote, challenging conventional economic benchmarks.

Dollar General’s positioning across a broad demographic spectrum is something Vasos views as a strategic strength as financial anxiety spreads further up the income ladder.