Econ Dollar Tree finacial news not good

[Mac11FA]

Looks like things are not boding well for Dollar Tree or their investors! Our company was tasked with a project at a new site in NC and now I see why it kept getting pushed back!

Dollar Tree to close up to 390 Family Dollar stores - finance - att.net

Dollar Tree to close up to 390 Family Dollar stores in 2019

start.att.net

 

[Grunk]

I wonder if the improving economy has anything to do with this. Better economy = better jobs and/or pay = no more shopping at the dollar store maybe?

 

[Mac11FA]

I wonder if the improving economy has anything to do with this. Better economy = better jobs and/or pay = no more shopping at the dollar store maybe?

Dollar tree is a true $1 store and Family Dollar is more like a low priced convenience store. The stores have a refrigeratorated section and expanded selection over the Dollar Tree although things cost more than a Dollar. I can see the popularity in more rural locations as a better option than a gas station store and cheaper. Unfortunately, most people are better shoppers and maximize their dollar when doing the weekly shopping. Also, they built too many stores too quickly.

 

[Mac11FA]

This quote from the article says a lot:

"While prices are lower at Dollar Tree, Neil Saunders, managing director of GlobalData Retail, noted that Family Dollar has a more urban customer who has a lower income than the average Dollar Tree shopper. Most of the purchases at Family Dollar are done on a strict budget, he added."

 

[Mac11FA]

This is even more revealing and nothing to do or show better economy:

"Dollar Tree Inc., based in Chesapeake, Virginia, acquired Family Dollar in 2015 for almost $9 billion. The move was expected to bolster its business and better compete with chains like Walmart and rival Dollar General Corp. But Family Dollar, hurt by unkempt stores and uninspiring assortments, has struggled and pulled down the parent company's earnings. And the company is under a lot of pressure from activist shareholder Starboard Value Hedge Fund to sell Family Dollar or expand prices at its Dollar Tree stores."

 

[Grunk]

Yeah, I grew up in NC with Family Dollar stores around and they were not impressive. The only thing I remember them having going for them was they were in a lot of little towns that literally had no place else to get things.

 

[dial1911]

I like dollar tree because everything is a dollar... I don't like family dollar though.

Actually shop at diablos tree pretty often.

 

[Jcountry]

I don't understand Dollar General at all..... Those things are going up everywhere. There is one about 3 miles from my house and another about 3 miles the other way..... WHY? I've been in there, and ain't nothing special going on.