Margin Pressures Cause ‘Indigestion’ for Dollar Stores

Margin Pressures Cause ‘Indigestion’ for Dollar Stores

“We continue to believe that [Dollar General, Family Dollar and Dollar Tree] are each entitled to grow its market share for years to come. However, it is clear that the gravy train has become a bit less benevolent as of late." — Aram Rubinson, analyst, Nomura Equity Research

The transformation of dollar stores from general merchandisers to consumables sellers is fueling rapid growth for the industry, but it’s coming at a price.

Both Dollar General and its rival, Family Dollar Stores, in recent weeks have reported that their earnings were slowing as the increase of lower-margin consumable goods as a percentage of th

Register to view the full article

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish