Posted on 03/13/2024 7:55:43 AM PDT by george76
Dollar Tree can't keep up with Bidenflation, changing consumer habits, and competition from other discount retailers — and will close nearly 1,000 of its Family Dollar locations around the country. The company announced the move this week following disappointing quarterly results
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"struggling to deal with a shift in consumer spending to lower-margin essentials from higher-margin discretionary products
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Even discount items .. are now out of reach for many Americans who have shifted their buying habits to even "lower-margin essentials" like food and gas.
The mainstream media keeps telling me the economy is booming, but Family Dollar can't cut it in an age when moms are forced to give up the $8 Maybelline Fit Me Concealer so they can put a couple more gallons of gas in the car to get to work in the morning.
It isn't like all of those lost Family Dollar sales simply disappeared into the ether. Some, maybe even most, went to competitors like Walmart. But the big tell here about the actual state of the economy is that discount shoppers didn't move up-market from Family Dollar to Target, but down-market from Family Dollar to Walmart and Dollar Tree.
Even Dollar Tree isn't what it used to be. Inflation forced the company to raise its famous dollar-for-everything price to $1.25 on most items back in 2021. Dollar Tree CEO Michael Witynski said at the time that "the additional price point [allows us] greater flexibility to manage the overall business, especially in a volatile, inflationary environment." But mostly it let the company generate enough revenue to keep growing. Those growth days, at least for the company's Family Dollar outlets, appear to be over.
(Excerpt) Read more at pjmedia.com ...
But in 1950 the federal hourly minimum wage was only 75¢ !
The Family Dollar here is not just jun, but the aisles are so cluttered that you can’t walk through the store without tripping on things.
I was born in 1951. As a teenager I remember getting a coke and bag of peanuts for a quarter, nickel candy bars and dime Eskimo Pies..
Jaysus! THAT’S the stuff of nightmares, LOL!
“Americans aren’t stupid. I, like many others, will continue to go to the pure Dollar Tree stores and skip the other two pretend dollar stores altogether. Just my two cents.”
Glad for your 2-Cents! I have a Dollar Tree near me and I get some really good deals on (non-China) items there.
I guess even in retail ‘Dollar Store Business’ there are Winners and Losers. Makes sense. Someone is going to do it better than the other competitors.
May the cream continue to rise to the top! ;)
Dollar Tree has always been a better bargain than Family Dollar. Dollar Tree has always been a true dollar store (or $1.25 store now), in that virtually everything in the store was $1.00 and is now $1.25. Family Dollar is more of a discount store, and not particularly competitive with places like Wallmart. Only a small fraction of their merchandise was ever $1.00. I became familiar with both, a few years back, when I was experiencing some lean economic times. Dollar Tree was always the better value.
five below
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