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.

Low-income Americans’ financial condition has gotten worse over the last year and more shoppers are going without basic necessities.

Tariffs and potential changes to government entitlement programs present potential further headwinds for core customers, said CEO Todd Vasos.

Dollar General joined a growing list of retailers warning of weak annual sales and profit, and said its consumers were struggling to afford some essentials as high inflation and economic uncertainty dent their spending power.

Dollar General (DG), often seen as a barometer for the economic health of value-conscious consumers, delivered mixed financial results in its latest earnings report, yet CEO Todd Vasos pointedly warned investors about deteriorating consumer conditions.