CONNECT WITH US
eCommerce

eCommerce

Dollar stores gain as Americans stretch budgets

Retail Dive – E-commerce logo

Published on

Add as a preferred source on Google
Dollar stores gain as Americans stretch budgets

Dollar General and Dollar Tree both reported second quarter increases in average ticket and traffic amid a tough macroeconomic backdrop.

The CEOs of both major U.S. dollar stores on Thursday said consumers were focused on “value and affordability” in the second quarter — a dynamic benefiting Dollar General and Dollar Tree’s earnings.

Dollar General’s Q2 net sales jumped 5.2% year over year to $11.3 billion, according to a company press release. Its 3.5% same-store sales increase reflected a 2% increase in traffic and a 1.5% increase in average transaction amount. The company's earnings exceeded its own expectations even before considering the benefit of tariff refunds, CEO Todd Vasos said in a statement.

Meanwhile, Dollar Tree reported total sales grew 7% year over year to $4.9 billion. Same-store sales increased 3.7% due to a 3.3% jump in ticket and a 0.4% increase in traffic.

Heightened gas prices particularly benefited traffic to Dollar General, which has a stronghold in rural communities across the country.

“The sales lift was driven by both traffic and a slight uplift in basket values,” GlobalData Managing Director Neil Saunders said in emailed comments. “The former dynamic got a small boost from higher gas prices which, especially in rural areas, make the proximity and shorter drive-times of Dollar General stores a bit more attractive. We have seen this dynamic play out before and, essentially, it acts as a recruiting tool for Dollar General.”

That benefit is expected to continue lightly across the year as gas prices remain somewhat elevated, Saunders added.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.