Dollar General CEO Todd Vasos said on Thursday that inflation continues to hurt the discounter’s customers and that the macroeconomic environment won’t improve this year.

On the company’s fourth-quarter earnings call, Vasos said customers are expecting value and convenience “more than ever” from the dollar-store chain.

“Our customers continue to report that their financial situation has worsened over the last year, as they have been negatively impacted by ongoing inflation. Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,” Vasos said. “As we enter 2025, we are not anticipating improvement in the macro environment, particularly for our core customer.”

Dollar General’s core consumer is “always strained” due to their economic status, but also resourceful, Vasos said.

“We’ve started to see where [our customer is] getting her sea legs, if you will, on the additional inflation that’s been very sticky out there, and she’s starting to understand her budgets even more,” Vasos said.

Part of the uncertainty, Vasos said, stems from the potential impact of President Donald Trump’s tariffs on the consumer.