Dollar Stores Become New Norm. DG Lowering Prices Again
Yes Dollar Stores Become New Norm .. However Walmart Pulls Some Customers Away For a Spell.. Now Dollar General Is Going To Lower Their Prices Again In Trying to Pull Folks Back!
Dollar Stores become new norm unlike during the 1980’s, when kids made fun of a person, or their buddies parents for buying generic paper towels, garbage bags or fudge sticks from the generic section of Grocery Stores. That was then, this is now … the landscaped has completely changed. Today we have entire stores with generic like products (along with better packaging.. colors and all) and everyone is shamelessly …even proudly flocking to them.
Within the past 10-12 years even the common upper scale soccer Mom is doing much of her shopping for lower ticket items at these so called Dollar Stores. So much has changed within the past 10-11 years that at this point, one might even comment to the contrary in saying it’s poor budgeting if they notice your purchasing all your towels, detergents, shaving cream, and cleaning solutions at higher level places. In today’s tight economy it is common for people to stop at two places for their groceries/cleaning supplies. First: A fairly decent establishment for their most purchased food items. Immediately after A Dollar Store of sorts on the way home for everything other than that including cleaning supplies, and general hygiene products has become common practice.
Walmart and Target took notice and in turn have lowered their prices over the past year in order to try to deter this 2 stop shopping situation. Three chains are now locked in fierce competition over small ticket items, generally $5.00-6.00 and lower. We know you’ve noticed the same same price scale for items within this price range ($5.00-6.00 and below) at these three chains over the past year. Dollar Stores (mainly Dollar General and Family Dollar), Walmart, and to a point Target… The reason is two fold: 1. People are shopping smarter than ever for general house hold items due to budget constraints and less free spending cash. This means instead of spending $8.00 on a 42 ounce bottle of top end Era liquid laundry detergent at Finest… consumers are opting for lesser known brands for $5.00 wherever the nearest dollar section or Dollar Store may be 2. Competitive prices for products that are $6.00 and under is something that is helping keep costs low on these sort of items between all those chain’s.
Items such as cleaning supplies, mouthwash, shampoo, toothpaste etc. are being snagged in two and three value packs more than ever to save 75 cents. Walmart and Dollar Stores over and now even Target are going head to head over purchasing items for cleaning and general hygeine.. With that noted, Now Dollar General has actually said it is going to lower their over all prices even more in an attempt to pull back consumers. Why? One reason: The tide started to switch back to a single store shopping experience mainly Walmart in it having close enough to Dollar Store prices making it once again possible to get all shopping done in one location for very close to the same price as if the shopping list was divided within two places. Dollar General announced would add many more products between $1 and $5, while marking down several current items.
Dollar General said it expects to improve it’s sales , over 2013 sales by this approach as much as 9% in 2014. Supposedly the harsh winter hindered sales in many sectors of the economy in 2013-2014. Dollar General had less than optimal, though not horrid reports for last years sales because of it. With that said the company has picked up sales momentum again starting last April (2014) and their stock is doing well. There is no sign of the Dollar chain in any serious trouble. Instead, there is a clear approach in them staying competitive with bigger stores such as Walmart (and to a degree Target).
In a VERY open attempt at keeping the public informed of their endeavors and in displaying that indeed they are forward moving the company hosted a major organizational conference call consisting of their plans for the public to listen to! It was held on Tuesday June 3, 2014 labeled by the conference ID 46320647. To hear it online go to Dollar General.com and find Investor Information> Conference Calls>Investor Events. The conference call will be available to listen to at any time through June 17, 2014 online or by simply calling 1-855 859-2056. Keep the ID 46320647 handy if you plan on giving Dollar Generals Major Company Conference Call a listen online or via phone.
Times have long since changed from the days of when only high-top Nike tennis shoes and real name brand Oreo cookies were acceptable.
Latest Buzz –
More financial specifics on Dollar Generals Financial Situation and Plans found on the link below:
Dollar General’s (DG) CEO Richard Dreiling on Q1 2014 …
http://seekingalpha.com/
Dollar General Corporation (DG) Q1 2014 Earnings Conference Call June 3, 2014 10:00 a.m. ET Executives Richard Dreiling – Chairman and CEO David Tehle – EVP.
Posted by Latest Buzz -
on Jun 6 2014. Filed under Latest Buzz.
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