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Dollar Stores' Success Slows As Consumers Avoid All But Essential Items

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Dollar Stores' Success Slows As Consumers Avoid All But Essential Items  Empty Dollar Stores' Success Slows As Consumers Avoid All But Essential Items

Post by Guest Thu Jul 14, 2011 10:55 am

Some Americans have become concerned enough about their finances that even a spending spree at the local dollar store now seems excessive.

Following the the economy's dive into the recession, dollar stores like Family Dollar, Dollar Tree and Dollar General saw significant increases in sales and profits. But that successful run might be over, as all three companies failed to meet quarterly earnings targets, according to the Wall Street Journal. The weak numbers are only the latest example of American consumers tightening their belts.

Due to a variety of factors including high gas prices and stagnant wages, Americans are coming to rely on dollar stores more for essential items, like food and cleaning products, than discretionary items like apparel and home decorations, which have higher profit margins and account for much of dollar stores profits, according to the WSJ.

http://www.huffingtonpost.com/2011/07/12/dollar-store-boon-may-be-over-consumers-essential_n_894964.html

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