Posted on 04/10/2014 11:57:36 AM PDT by Responsibility2nd
NEW YORK (AP) — Dollar stores are feeling the pinch from mounting financial pressures on low-income shoppers.
Family Dollar said Thursday that will cut jobs and close about 370 underperforming stores as it tries to reverse sagging sales and earnings. The discount store operator will also permanently lower prices on about 1,000 basic items.
Family Dollar Inc., which operates 8,100 stores, did not provide details on how many jobs it would cut.
~SNIP~
Dollar General, the nation's largest dollar-store chain with 11,100 locations, offered a weak profit outlook last month after reporting weak fourth-quarter sales. And Dollar Tree, which operates about 5,000 locations, missed profit expectations for the holiday quarter in February.
Family Dollar has stumbled even more than its rivals because it has made mistakes in pricing, merchandising and the locations of its stores, analysts say. Still, the industry's problems are a big departure from a few years ago, when Family Dollar and other chains packed in customers and expanded rapidly by catering to cash-strapped people during the Great Recession.
(Excerpt) Read more at tbo.com ...
Family Dollar and Dollar General are next to each other in Clearwater, SC.
——then what does that say?——
One might argue the obvious........ as the economy has improved those with more money choose to go to stores wit better but more expensive stuff for sale
“I much rather go into one of those stores if I need to pick up a gallon of milk or a couple of other items than the Wally Mart a couple of block down. I can get in and out much faster.”
I use it the same way; how can they stay in business with customers like us? If I was to buy groceries that cost $160 in Wal-Mart at a dollar store, I’d easily pay $200+; they really aren’t a bargain at all - just convenient.
0bamacare saved everyone $2,500, so what happened?
I remember when Motel 6 started, a room was 6 dollars.
Bad. When the discount stores are hurting, it means it’s really bad.
“0bamacare saved everyone $2,500, so what happened?”
Duh; we’re all shopping at Macy’s now.../s
Walmart is more expensive than Dollar General for a lot of things. If Walmart wants to compete for market share, its margins may go down, which won't be good for the stock. The Walmart formula was superior logistics + superior IT. These days, everyone has the same logistics and IT, perhaps in part due to Walmart alumni getting jobs at the other chains.
People can’t afford the dollar stores now?
How can that be? The economy is booming - only 6.7% unemployment and countless $millions saved for families due to 0bamacare.
/EXTREME sarc
...as the economy has improved...
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I slept late this morning, I must have missed that.
The one item that Family Dollar had that was really good (and I’m not joking) were the Family Dollar branded bleach toilet disks. They worked the best - no scrubbing needed. Then sometime last year, they disappeared.
I actually went out of my way to go to Family Dollar just to buy that one item. That stopped.
So glad we’re entering another “summer of recovery”...
We have a Dollar Tree near us and it’s always busy. I recently discovered that they actually sell groceries for a dollar.
I remember five and dime stores that actually sold things for a nickel or a dime, now a dollar store has nothing that sells for a dollar. Next up, the five and ten dollar store?
In suburban Las Vegas, often the only store left in strip malls were the Dollar stores. It may still be that way.
As for the rest of the country, besides saturation, the economy is improving. Shoppers moving up to Walmart, Walmart shoppers to Target, Target shoppers to boutiques.
The vacuum: Dollar stores.
I’ve never tried them; that’s a shame that they stopped stocking the one thing worth shopping for...
When I’ve been there, it seems most shoppers are just picking up a couple of essentials (they are convenient for that). Occasionally, a shopper would wheel up a full cart - and you got the impression “we” were paying for it...
But... but.... the “recovery!!!”
0bamacare saved everyone $2,500, so what happened?
________________________________________________
“If you like your dollar store, you can keep your dollar store.”
Hadto chuckle at that comment.
Family Dollar said Thursday that will cut jobs and close about 370 underperforming stores as it tries to reverse sagging sales and earnings. The discount store operator will also permanently lower prices on about 1,000 basic items.
Family Dollar Inc., which operates 8,100 stores, did not provide details on how many jobs it would cut.
http://abcnews.go.com/Business/wireStory/family-dollar-cut-jobs-close-370-stores-23270169
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