Dollar stores have historically seen great success during times of economic uncertainty and high unemployment. Dollar General and Dollar Tree hosted earnings calls on Thursday. Dollar General posted triumphant numbers, while Dollar Tree saw a dip thanks to dampened Easter sales.
In a note regarding Dollar General's earnings, managing director of GlobalData Retail Neil Saunders wrote that the chain has succeeded by opening locations in "rural or suburban areas which are underserved by other operators." Saunders credited that strategy with positioning the company to post a 21.7% jump in same-store sales and a net sales increase of 27.6%.
that while Family Dollar "delivered strong same-store sales with a 15.5% increase," Dollar Tree itself saw sales plummet due to "lower Easter holiday sales" of candy and other discretionary items.reported that the retailer beat expectations, and saw sales rise to $6.29 billion, up from last year's $5.81 billion in sales.
"We can see a correlation of the stimulus dollars being released and an increase in our basket size," he said.
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