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Americans are reluctant to buy even stores "dollar store"
After a strong performance recorded over the period of the recession, retailers flights in the USA, known as the "total dollar stores", are beginning to slow the growth in sales and profits. "Wall Street Journal" notes that can be seen as a sign that even the cheap toys and treats are now already out of reach of some
Consumers. In recent m and s outlet weeks, Dollar General, Family Dollar Stores Inc. and Dollar Terry - three major networks in the United States where they sell discounted products especially - did not meet the revenue targets set for the quarter. Three networks mentioned that one of the main reasons for the slowdown is due to transportation costs due to rising fuel prices. Additionally , the claim is that the customers are regulars of shops, hit the high unemployment rate, wage stagnation and rising gas prices, prefer to focus on the purchase of food and other basic products such as detergents, m and s outlet which have profit margins m and s outlet are relatively low.
"This sector was nirvana during the recession as consumers chose to save," explained Wall Street m and s outlet Journal "Adrienne m and s outlet Shapira, retail analyst at Goldman Sachs in the area," But now, buyers are working attitude, Bonkristit. Rise in inflation led to a decline in purchases of luxury, and it painful. "
Although the three networks continue to report sales growth in stores open more than a year, a big rival like Wal-Mart or Target can only envy, but with a slowdown in growth as Dollar General, m and s outlet Family Dollar and Dollar freshly recorded m and s outlet price of 5.4%, 4.7% and - 7%, respectively, compared to last year.
"We m and s outlet have 228 items that are priced just one dollar we believe are very important customers, and we chose not to raise their prices," said Dollar General CEO Rick Driling Speaking to analysts at the beginning of June. "It m and s outlet may sound silly, but the item is sold dollars comes suddenly in - $ 1.15 is a big change for our customers. "
Fresh dollar has the best performance among the three leading networks, and has the highest growth rate in stores open more than a year and the smallest decline in profit margins. The main reason for this is probably the fact that a dollar less familiar fresh food rivals does not hold all the clothes. However, mainly focuses on network products, seasonal decorations for parties and they all sold for just one dollar. In addition, m and s outlet half of the net new customers have a family income of more than 70 thousand dollars. m and s outlet
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