After years of prolific growth, US dollar stores have hit a downturn.
Dollar Tree shares plunged 20% Wednesday after the company cut its outlook for the rest of the year, citing “immense pressures” on its low- and middle-income customer base. Dollar Tree also owns the long-struggling Family Dollar chain. The stock slump came on the heels of Dollar General slashing its full-year forecast, sending shares to their worst day on record last week.
Other companies have also recently pointed to low-income customers’ weakness, including McDonald’s. Strategic mistakes Economic challenges aren’t the only reasons the two chains are in turmoil. Both companies have made strategic missteps. Historically, most of Dollar General’s sales have come from its “consumables” division: low-margin food, cleaning and household supplies and personal care products. In recent years, Dollar General has focused on growing the discretionary side of its business.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer says Dollar General has Walmart to blame for ugly earningsShares of Dollar General plummeted 25% Thursday following the release of its earnings.
Read more »
Dollar General shares plummet as Walmart, Target take bite out of profit“To regain foot traffic, Dollar General will likely need to cut prices and increase promotions,” an analyst with CFRA Research said.
Read more »
Dollar General CEO says ‘financially constrained' consumers partially to blame for softer demandDollar General's stock slid by more than 27% on Thursday after the company's second quarter earnings missed analysts' expectations amid soft consumer demand.
Read more »
Walmart, Dollar General Shoppers, Take Caution: Candy May Be Contaminated With SalmonellaDigital destination for sophisticated men & women. Live your best life with expert tips and news on health, food, sex, relationships, fashion and lifestyle.
Read more »
Candy sold at Target, Walmart, Dollar General stores recalled due to salmonella threatCandy products sold throughout the United States at Walmart, Target, Dollar General and other stores have been recalled due to a risk of Salmonella bacteria contamination.
Read more »
Dollar General, Dollar Tree, Kroger charge millions in ‘cash-back’ fees: How they do itWalmart, Target, CVS, and Walgreens offer the service for free.
Read more »