Dollar Tree and Dollar General Report Sales Gains as Shoppers Cut Costs
The biggest dollar-store chains in America say they have seen more customers visit their stores in recent months, with shoppers trying to stretch every dollar they spend in an uncertain U.S.economy.Dollar General, the sector’s largest retailer, with more than 21,000 stores across the country, said on Thursday that comparable stores sales were up 3.5 percent in its most recent quarter.
The company reported its fifth straight quarterly rise in store traffic, which was up 2 percent.Customers also spent more per transaction at Dollar General, and the company raised its financial guidance for the remainder of the year.“Our core customers continue to be financially constrained, with a variety of factors impacting their budget,” Todd Vasos, the chief executive of Dollar General, told investors and analysts on a conference call.“Most notably, higher and more volatile fuel prices have forced customers to further prioritize purchases with a focus on value and affordability.”Americans have been wrestling with persistent inflation, giving them sticker shock at the gas pump and at the supermarket.
They have also struggled with the economic uncertainty brought on by higher housing costs and a fragile job market.This month, many of America’s biggest retailers, including Walmart and Home Depot, said consumers had been frugal and searching for the best deals.A section within Dollar General stores called Value Valley, which is a dedicated area with a rotating selection of $1 items, performed much better than the retailer’s average merchandise.
Comparable sales rose more than 16 percent last quarter in those aisles, and the company is boosting the presence of that section in more than 9,000 stores.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you f...