No. of Recommendations: 1
"The state of some Dollar General stores over the course of this year has been unhelpful to converting new shoppers into bigger spenders and to increasing basket size more generally," Neil Saunders, managing director of GlobalData Retail said in a note to clients on Thursday.
"While few consumers expect Dollar General to be a place of great inspiration, basic shopkeeping standards ' such as not having aisles completely blocked by cages of merchandise, which are a function of excess inventory ' are important," he added.
With more discount store options to choose from and chains like Walmart focusing on price, there are fewer reasons for these consumers to have to switch to Dollar General
https://stocks.apple.com/AirI9lw3sRe22Pgo8R_RSWwThe lackluster results are especially surprising given that other value-focused retailers, including Walmart (WMT) and TJX Cos. (TJX), have thrived as shoppers seek to stretch their budgets in response to inflation and high interest rates.
Why, then, have dollar stores failed to reap those benefits? To Jefferies analyst Corey Tarlowe, it comes down to a mix of company-specific and macroeconomic challenges.
'They have some operational hurdles that they're in the midst of overcoming, and it's hindered results a little bit,' he told Barron's.
Both Dollar General and Dollar Tree are in the early stages of new investment strategies, including spending on higher wages, store remodeling, supply-chain improvements, and efforts to fight theft. Other competitors, including Walmart, are further along in their investment cycles, he said.
https://stocks.apple.com/AZ59DivhqS4K-_4nkLyGpvA 