Business lovers can often be the sign of a retailer in a time of fight. For example, we take Kohls, who closed about two dozen business at the beginning of this year Disappointing winning report this week.
Dollar General is this trend. The Fortune 500 discount dealer said on Thursday during his Earnings report In the fourth quarter, which ended at the end of January, there were 96 locations, but net sales actually increased by 4.5% to $ 10.3 billion. For the entire financial year 2024, net sales rose by 5.0% to $ 40.6 billion. From lunchtime daily, the stocks rose by more than 3.5%.
Dollar General in the second half of the fourth quarter in the 2024 financial year recorded stronger traffic growth Placer.ai provided to Assets. Consumers were possibly more cost-conscious after the holidays and were looking for discount retailers, Elizabeth Lafontaine, research director at the Intelligence and Foot Traffic Software Company Placer.ai Assets.
“Last year there was an appetite of consumers on cheaper and value -oriented offers that could only grow against the background of the decreasing consumer mood and potential changes to shopping behavior,” said Lafontaine.
The data from Placer.
Nicole DehoratiusA professor of professional practice Columbia Business SchoolIn this era of inflation prices, families are looking for paths to use the best of their budget and shopping in shops such as Dollar General enables them to do so.
“The pressure on family budgets – has revived the electricity economic uncertainty– It is probably continued and as retailers who can offer their consumers added value Assets.
At the end of February the University of Michigan’s Consumers index Came with his Squeeking reading Since November 2023. Consideration regarding inflation and the pollede of President Donald Trump imposed on the trust of consumers and also sent the activity of shares in recent weeks.
Todd Vasos, CEO of Dollar General,, however, seemed confident that the discount retailer can survive all the effects on the tariffs.
“We believe that we are well positioned to alleviate the effects (the tariffs) in 2025,” said Vasos during the win on Thursday. “We were able to successfully weaken the tariff effects in 2018 and 2019.”
However, Vasos admitted that in 2018 and 2019 the company “achieved the sales price increases together with others in the entire industry”.
“In view of the already emphasized financial situation of our core customer, we monitor these and other potential economic headwinds, including changes to the state claims programs,” said Vasos.
Now other discount dealers, including Walmartshow signs of the fight. Although Walmart achieved another quarter of growth At the end of February, his forecast for 2025 was poor, which at that time plunged stocks. The Walmart shares fell by 18% by 18% per share compared to their 19th February.
“Our outlook suspends a relatively stable macroeconomic environment, but admits that there are still uncertainties related to consumer behavior and global economic and geopolitical conditions,” said John David Rainey, Chief Chief Financial Officer von Walmart, during the company’s profit at the end of February.
Shares for Dollar treeAnother Fortune 500 discount retail chain has also dropped by 15% since the beginning of the year.
Dollar General also plans to expand in 2025. Part of the company plan to close almost 100 stores of underperformance – which was less than 1% of the company’s entire business point – to provide new business resources. The company plans to open 575 shops and convert around 4,250 in 2025.
This story was originally on Fortune.com
