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Dollar Store News
Dollar Stores Continue to Gain Food Shoppers
In the Dollar Store world, Dollar General (DG) and Dollar Tree
continue to perform the best in terms of sales comps and profitability. ...
Dollar Tree (DLTR) announced their recent earnings, and Wall Street likes what
it sees . Dollar Tree reported strong earnings on a +12 % sales gain. Net
margins continue to improve driven by expanded offerings of branded and private
label foods. Consumers continue to favor these low price leaders along with club
stores Costco (COST) and BJ's (BJ), and extreme value stores like Aldi and Save-Alot
(subsidiary of Super Valu (SVU).
The price sensitive consumer appears to be here to stay, and
food products are the main driver of traffic for the non-traditional grocery
stores. Dollar Tree announced a strong +6.6% increase in traffic in the latest
quarter.
Discount food retailers are seeing similar overall strength in customer traffic
as consumers continue to diversify their food shopping occasions from
traditional grocery stores. Grocery store leaders Whole Foods (WFMI) ,Super Valu
and Kroger (KR) continue to feel sales pressure from the discounters with the
perception of value being the key consumer decision criteria.
In the Dollar Store world, Dollar General (DG) and Dollar Tree continue to
perform the best in terms of sales comps and profitability. Dollar General
generates 11.5 billion in annual sales and they posted a +13% increase in sales
in the latest quarter. Family Dollar (FDO) has sales of $7.5 B but slower growth
at +4%.
Dollar Tree ranks third in total sales with $5.1 billion in annual sales. 99
Cents Stores has the lowest mix of food and generated +4% growth on $1.35 B in
sales. Dollar Tree and Dollar General have the strongest net margins at 9% and
8% respectively. All are expanding the amount of food products being offered and
that is helping drive traffic for the total dollar store universe.
The trend towards improved traffic at dollar stores driven by food purchases
should continue throughout 2010. Of the 4 main competitors we like Dollar Tree
best for its strong growth and reasonable valuation. Dollar General also
continues to perform well and has the largest market share, but sports a
slightly higher PE (23 versus 17) than Dollar Tree, despite similar growth
projections. We think the discount/value trend will continue, making both Dollar
Tree and Dollar General good stocks for potential buys.
Dollar Tree, Inc. Reports Record Results
Fourth Quarter 2009 Earnings Per Share Increased 32.2%, to $1.52
CHESAPEAKE, Va., Feb 24, 2010 (BUSINESS WIRE) -- --Fourth
Quarter 2009 Operating Margin Increased 210 Basis Points, to 14.0%
--Fiscal Year 2009 Earnings Per Share Increase 40.7%, to $3.56
Dollar Tree, Inc. /quotes/comstock/15*!dltr/quotes/nls/dltr (DLTR 56.90, +0.13,
+0.23%) , the nation's leading operator of discount variety stores selling
everything for $1 or less, reported earnings per diluted share of $1.52, for the
quarter ended January 30, 2010 ("fourth quarter"), an increase of 32.2% compared
to the $1.15 earnings per diluted share reported for the quarter ended January
31, 2009. Consolidated net sales for the fourth quarter were $1.56 billion, a
12.4% increase compared to $1.39 billion reported for the quarter ended January
31, 2009. Comparable-store sales increased 6.6% for the quarter.
"We are very pleased with our 4th quarter and full year 2009 financial
performance," said President and CEO Bob Sasser. "Dollar Tree achieved record
sales and earnings and I am especially proud of the significant improvements in
our operating margin and inventory productivity. Customers like our convenient
locations, friendly shopping environment and exciting merchandise value. In
2010, we expect continued positive results from our focus on merchandise
productivity, keen management of supply chain and back office expenses and
investment in initiatives and merchandise to thrill the customer. Dollar Tree is
well positioned for continued growth."
Operating margin increased 210 basis points for the quarter to 14.0%. The
improvement was driven by a 150 basis point increase in gross margin and a 60
basis point reduction in Selling, General and Administrative expenses.
During the fourth quarter 2009, the Company repurchased 0.8 million shares of
its common stock for $38.5 million. Year-to-date, the Company has repurchased
4.3 million shares for $193.1 million. At the end of the fourth quarter, $260.6
million remain under the $500 million share repurchase program authorized by the
Board of Directors.
For the year, sales totaled $5.23 billion, a 12.6% increase year-over-year, on a
comparable store sales increase of 7.2%. Operating margin increased to 9.8% in
2009, from 7.9% one year ago. Diluted earnings per share were $3.56, an increase
of 40.7% from diluted earnings per share of $2.53 in 2008.
The Company continues to grow. During the fourth quarter, Dollar Tree opened 7
stores, closed 4 stores, and expanded 1 store. For the year, the Company opened
240 new stores, closed 25 stores and expanded or relocated 75 stores. Retail
selling square footage at fiscal year end was 32.3 million, a 6.6% increase
compared to a year ago.
Inventory Accounting Change
The Company uses the retail inventory method to assign cost to store
inventories. Since inception, the Company has employed one inventory pool for
this calculation. Effective January 31, 2010, the first day of fiscal 2010, the
Company will use approximately 30 inventory pools in its retail inventory
calculation. This change was made possible by the Company's investments in
information systems. It will facilitate improved decision-making and further
enhance our assortment planning process.
As a result of this change, in the first quarter 2010 the Company expects to
record a non-recurring, non-cash charge to gross profit and a corresponding
reduction in inventory, at cost, that is currently estimated at approximately
$28 million, or $0.20 per diluted share. This impact accumulated over the
23-year history of the Company, and is included in our guidance. There will be
no effect on prior periods related to this change in inventory accounting.
Guidance
The Company estimates sales for the first quarter of 2010 to be in the range of
$1.29 - $1.33 billion, based on positive low -to- mid single digit comparable
store sales, and 6.3% square footage growth. Diluted earnings per share are
expected to be in the range of $0.57 to $0.65, including the aforementioned
non-cash charge relating to the inventory accounting change. Absent this charge,
earnings per diluted share for the first quarter 2010 would be expected to range
from $0.77 to $0.85. The Company reported earnings per diluted share of $0.66
for the first quarter 2009.
For the full year, the Company estimates sales will range from $5.59 - $5.76
billion. This estimate is based on a range of low -to -mid single digit positive
comparable-store sales, and square footage growth of approximately 6.3% for the
year. Fiscal year 2010 diluted earnings per share are expected to be in the
range of $3.76 to $4.03, including the non-cash charge relating to the inventory
accounting change in the first quarter. Excluding the charge, earnings per
diluted share for the full year 2010 would be expected to range from $3.96 to
$4.23. These estimates assume no impact from potential additional share
repurchase activity in 2010.
On Wednesday, February 24, 2010, the Company will host a conference call to
discuss its earnings results at 9:00 a.m. EST. The telephone number for the call
is 888-819-8015. A recorded version of the call will be available until midnight
Wednesday, March 3, and may be accessed by dialing 888-203-1112, and the pass
code is 1696485. International callers may dial 719-457-0820 and the pass code
is 1696485. A webcast of the call will be accessible through Dollar Tree's
website, www.dollartreeinfo.com/investors/news/events.
Financial Reporting Schedule
Beginning with the first quarter of fiscal 2010, the Company will announce
financial results on the third Thursday following quarter end. Along with this
change, quarterly net sales and comparable-store sales will be reported as part
of the Company's quarterly financial results. The Company will no longer report
quarterly net sales and comparable store sales in a separate press release.
Dollar Tree, a Fortune 500 Company, operated 3,806 stores in 48 states as of
January 30, 2010, with total retail selling square footage of 32.3 million. To
learn more about the Company, visit www.Dollartree.com.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This press release contains "forward
looking statements" as that term is used in the Private Securities Litigation
Reform Act of 1995. Forward looking statements address future events,
developments or results and typically use words such as believe, will,
anticipate, expect, intend, plan, forecast, or estimate. For example, our
forward looking statements include statements regarding total and
comparable-store sales and earnings for future periods, our plans for square
footage growth and our estimated non-cash charge to inventory. Among the factors
that could cause actual results and outcomes to differ materially from those
contained in such forward-looking statements are: general economic conditions,
activities of competitors, inflation and fuel and labor costs, weather, changes
in law or regulations, and foreign currency fluctuation. A further list and
description of these risks, uncertainties and other matters can be found in the
company's annual report and other reports filed from time to time with the
Securities and Exchange Commission. For a discussion of the risks, uncertainties
and assumptions that could affect our future events, developments or results,
you should carefully review the "Risk Factors," "Business," and "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
sections in our Annual Report on Form 10-K filed March 26, 2009 and our
Quarterly Report on Form 10-Q filed November 24, 2009. In light of these risks
and uncertainties, the future events, developments or results described by our
forward looking statements in this document could turn out to be materially and
adversely different from those we discuss or imply. Dollar Tree cautions that
the foregoing list of important factors may not be complete, and we are not
obligated to release publicly any revisions to any forward looking statements
contained in this press release to reflect events or circumstances occurring
after the date of this report and you should not expect us to do so.
Tired of bad news? Here's some good news.
It may go down as the year of lost jobs, but good things
also happened in Hampton Roads’ economy in 2009. Forget
about the layoffs and plant closings for today. As the
nation suffered in the recession, Hampton Roads hurt less.
First-time homebuyers lifted the housing market thanks to a
tax credit from Uncle Sam. Trader Joe’s opened at Hilltop,
and penny-pinching shoppers flocked to Dollar Trees
everywhere. It cost less to fill up your gas tank, and the
air got clearer at your local eateries and watering holes.
And it turned out that those big cranes down on the
waterfront may be worth hundreds of millions – if not
billions – of dollars to the state. Here’s a look at what
The Pilot’s business news team thinks are the top “good
news” stories of 2009:
____
Our economy is among the strongest
Facing the worst downturn in more than a half-century,
some Hampton Roads businesses scrapped or postponed
projects. Some laid off employees.
The region, however, has weathered the recession better
than many parts of the country did. In a series of reports
on economic activity in the nation’s 100 largest metro
areas, the Brookings Institution, a think tank based in
Washington, D.C. , said the Virginia Beach-Norfolk-Newport
News region ranked among the top 20 areas in performance.
Hampton Roads was one of only a half-dozen where the
output of goods and services surpassed their pre-recession
peak by the summer of 2009, noted Brookings’ Metropolitan
Policy Program in a report for the July-through-September
period. The Brookings program evaluates the strength of
metro areas according to changes in their employment and
jobless rates, output of goods and services, and home prices
Dollar General Posts Profit as Sales Rise 13%
Dollar General Corp. returned to profitability in the third
quarter, springing back from prior-year legal costs, while the discount chain
continued to attract more shoppers and improve sales and margins.
For the quarter ended Oct. 30, revenue jumped 13% to $2.93 billion, reflecting
sales growth of roughly 15% for consumable and seasonal items, its largest
categories. Same-store sales climbed 9.2%
The Cheap Issue: Dollar-store shopping spree
We tend to check out dollar stores around the holidays (there's no better
place to find dirt-cheap Christmas cards and gift wrap) but not so much the rest
of the year.
So with an eye toward saving a buck all year round, we scoured the local
discount-store scene with a $30 budget to see how much stuff we could find that
we could realistically use in our day-to-day lives. And we found plenty —
brand-name cleaning supplies and cosmetics, pricy-looking home decor items and
lots of everyday necessities like flashlights, screwdrivers and scissors.
A tip: Be sure to pay attention to the prices listed on the store shelves.
Many so-called dollar stores actually price lots of merchandise at $5, $10, $20
and above. —Brittany Kress, Shelley Mann & Melissa Starker
All prices $1 unless otherwise noted
Dollar Depot And More Changes Ownership
As if Dolly Boling didn't have enough to do - she is currently
serving as treasurer for the Bonners Ferry Chamber of Commerce, treasurer for
Friends of Downtown, treasurer for the Holiday Fund and is a member of the Hall
Mountain Fire Volunteer Fire Department Auxiliary - she recently purchased one
of downtown Bonners Ferry's busiest businesses, Dollar Depot And More.
Although she has been the manager of Dollar Depot And More for six years (she
originally helped stock shelves before the store was open for business ) this
dynamo of a business woman is determined to change the image of what people
sometimes flippantly refer to as "the dollar store."
"I want to get away from the dollar store image," emphasized Dolly. "This was a
dollar store originally but only for about three months before Vi Sims bought
the business. We added the "And More" phrase to designate that we carry higher
quality merchandise than you would get at a typical dollar store."
Under her capable management, Dolly is determined to, in her words, "stay the
friendly downtown store we've always been." She is planning to continue doing
business with the discount wholesalers whom she has been previously working
with, but in addition, she plans to add merchandise that shoppers could purchase
at places such as Wal-Mart and Target.
"I want to carry general merchandise where people can come and look for what
they need, things that they might previously have had to travel to Sandpoint to
get. I try to have three price points so that the store will attract all levels
of shoppers," she remarked.
Because Dollar Depot And More has the largest square footage of any other store
in Bonners Ferry except for the grocery stores, Dolly is considering widening
her hefty inventory even more to include such items as undergarments, socks,
belts, scarves, hats, gloves and handbags.
"When I go to the big shows to buy my inventory, I have a lot of New York
designers available to me," she said. "They bring their discounted items to the
shows and I am able to pick them up for a reasonable price."
With the knowledge that Bonners Ferry isn't Rodeo Drive (and doesn't want to
be), Dolly plans to keep her clothing items to things that regular people would
wear for "every day general use."
Dolly is passionate about her business and is committed to creating greater
access to good quality items for Boundary County residents.
"I couldn't see bailing on this business opportunity," she added. "Bonners Ferry
needs this store and that is why I took the plunge. I take customer suggestions
very seriously. In fact, I keep a list of items that customers ask for and if a
particular item is asked for enough times, I'll try to find it."
An ardent proponent of buying locally, Dolly related that spending dollars
locally is crucial for the local businesses, hers included.
"My invitation is for people to come in regularly. We get new freight all the
time and there are always new things to see. My dream is that in seven years,
one of my employees will want the store and it will just keep being handed
down," she concluded.
Dollarama sees opportunity to grow by 30 to 40
stores per year as IPO gets underway
By Kristine Owram (CP) – 3 days ago
TORONTO — Dollarama Inc. (TSX:DOL), betting the surge in sales it has enjoyed
during the recession will have staying power when the economy recovers, intends
to expand its presence by 30 to 40 stores a year for the foreseeable future.
In a prospectus filed as part of an initial public offering, Canada's largest
discount retailer said it sees "opportunity for significant growth" as it
becomes a publicly traded company.
Currently, the Montreal-based retailer operates 585 stores across the country,
but said it sees the potential for at least 900 based on its current per capita
penetration rate in Quebec, which is much higher than in the other provinces.
Discount retailers have fared very well during the recession as consumers look
for deals on consumables, toys and household necessities. Dollarama, for
example, recorded a seven per cent increase in same-store sales in its fiscal
second quarter.
However, whether they can continue their growth once the economy begins to
rebound is an open question.
Retail analyst Wendy Evans, founder of Evans and Company Consultants Inc., said
there's room for expansion in the dollar-store sector as long as they continue
to offer a wide variety of products.
"Probably as the economy improves and the market expands, I guess that the
prices may go up a little bit more and they'll be able to expand their
assortments more broadly," Evans said.
"Whether the growth will be as good as previously I don't know but I think
there's still lots of opportunity for new stores.
John Williams, president of retail consultant J.C. Williams Group, said he
thinks the dollar-store market is "close to being saturated" as other mass
merchants start to offer similar prices to stay competitive.
But he said stores like Dollarama should be able to maintain at least a portion
of the new customers they gained during the recession.
"When times get good again some people will go back to their old ways, but there
will be a portion of the population that says, 'Well, that dollar greeting card
will be just fine."'
The stock market seems to agree. Shares in the company added 81 cents or 4.4 per
cent to $19.26 in their first few hours of trading.
Dollarama said it is in the process of setting itself apart from its dollar
store competitors - including Buck or Two, Dollar Giant, Dollar Store With More,
Everything For a Dollar and the Great Canadian Dollar Store - through its
consistent product offerings at multiple price points.
"Many Canadian dollar stores have a market positioning similar to close-out
retailers, offering a 'treasure hunt' type shopping experience. Product
selection and availability at these retailers change frequently and are often
inconsistent, largely as a result of a sourcing strategy focused on importers
and liquidators," the company wrote in its prospectus.
"Some dollar stores, including Dollarama, have differentiated themselves by
offering a more consistent product selection which includes everyday household
needs and a selection of nationally branded products, as well as an assortment
of unique and seasonal items. This strategy is intended to drive customer
loyalty and repeat traffic."
In addition, the company recently broadened its single $1 price point to include
items priced at $1.25, $1.50 and $2.
In the quarter ended Aug. 2, items priced above $1 represented 24 per cent of
Dollarama's sales and the company said the new price points contributed
significantly to its comparable-store sales growth of seven per cent.
"Since the introduction of multiple price points, comparable store sales have
been driven both by an increase in units sold and by an increase in average
selling price," the company said, adding that it intends to expand the range of
products available at different price points.
In the second quarter of its fiscal 2010, the company saw profits of $25.7
million, down from $26 million for the same period a year earlier.
Sales jumped nearly 15 per cent to $303.4 million from $264.3 million as
consumers sought to spend on cheaper goods because of the recession.
Dollarama is the biggest operator of discount retail stores in Canada and
employs approximately 12,000 people. Its product offering is approximately 37
per cent consumable products like cleaning supplies and snacks; 47 per cent
general merchandise including kitchenware and toys; and 16 per cent seasonal
products such as Valentine's Day and Halloween merchandise.
The company said Thursday it hoped to raise $300 million in its initial public
offering of 17.1 million shares at an IPO price of $17.50. It said this money
will be used to repay debt.
Based on the initial public offering price, Dollarama's market capitalization
will be approximately $1.3 billion.
Andrew Willis and Boyd Erman
Globe and Mail Update
Thursday, Sep. 10, 2009 08:00PM EDT
Canada's biggest
dollar-store chain, which expanded and prospered while
consumers pinched their pennies, now plans to go public
as the economy heals and markets thaw. Dollarama Group
LP, the Montreal-based chain with 585 stores, plans an
initial public offering of more than $250-million this
fall, cashing in on its success during the recession,
investment banking sources said.
The deal marks the continued thawing of an IPO market
that froze during the financial crisis. It also gives
its majority owner, Bain Capital LLC, a much-needed win.
An IPO from a name-brand company such as Dollarama
would mark the third large corporate debut on Canadian
public markets in as many months, marking the end of a
nine-month drought in IPOs that began in 2008. Insurer
Genworth MI Canada Inc. and power company Magma Energy
Corp. went public on the Toronto Stock Exchange this
summer, raising $850-million and $100-million
respectively.
A number of companies have also sold stock recently
as investors bet on a full-fledged recovery. WestJet
Airlines Ltd. raised $150-million this week, and
investment bankers said Dollarama would make much the
same pitch to potential shareholders.
Discount and dollar stores have generally been able
to make sales gains in the recession as cash-strapped
consumers look for bargains.
Dollarama recently hired advisers to work on the sale
of 25 to 30 per cent of the company, sources said. The
chain is 80 per cent controlled by Boston-based Bain,
which purchased its stake in 2004 from chief executive
officer Larry Rossy in a deal that valued Dollarama at
$1-billion.
Bain is expected to target its IPO campaign at
Canadian investors, as domestic retailers such as
Shoppers Drug Mart Corp. and Loblaw Cos. Ltd. draw
premium valuations compared with U.S. peers. As the
leading player in its sector, Dollarama will attempt to
claim the same lofty status. Bain was a minority owner
of Shoppers when the drugstore chain went public in
2001.
“Bain will be selling from a position of strength.
The chain is doing well in a tough environment,” said
one investment banker who follows Dollarama but is not
working on the IPO.
Spokespersons for Dollarama and Bain declined to
comment.
Since the buyout five years ago, Bain and Mr. Rossy
have doubled the number of stores, and boosted sales and
profit by rolling out new lines at higher prices. Not
everything in Dollarama costs a buck these days: Since
February, shelves have been stocked with plenty of items
priced at $1.25, $1.50 and $2.
Privately owned Dollarama reported financial results
yesterday – the company's debt trades on U.S. markets –
and sales were up 14 per cent to $303-million in the
most recent quarter compared with 2008, in part because
the chain opened 54 new stores over the past year.
Same-store sales rose 7 per cent, while quarterly
operating profit was flat at $35-million. Dollarama has
$460-million in debt.
RBC Dominion Securities and CIBC World Markets were
major lenders to Bain on the 2004 buyout, and sources
say these two investment banks are expected to play
leading roles in an IPO.
Bain, a $60-billion (U.S.) fund, is not the only
private equity fund selling a stake in a discount
retailer. Rival Kohlberg Kravis Roberts & Co. filed late
in August for a $750-million IPO for its U.S. chain
Dollar General Corp., with analysts pegging the value of
the whole company at up to $10-billion.
Dollar General is much bigger than Dollarama, with
almost 8,600 stores and quarterly revenue approaching
$3-billion.
“Bain wants to move ahead of the Dollar General IPO,
while capitalizing on that buzz with investors,” said
another investment banker familiar with the fund's plan,
but not working on the IPO. He added that the fund will
not initially get private equity's traditional
15-per-cent-plus expected annual returns on its
Dollarama investment, but said: “Bain isn't really
cashing in. They are getting liquidity, but still plan
to ride with the company, as they did with Shoppers.”
KKR, Bain and the Ontario Teachers' Pension Plan, the
former owners of Shoppers, sold their stakes in the
drugstore chain over several years, after buying the
retailer in 1999.
Closings prompt executives to become their own
bosses
Bruce Smythe learned about Menchie's Frozen Yogurt during a visit last
fall to California to see two of his children.
The prepare-it-yourself yogurt shop with its "fun, family atmosphere" made such
an impression on the president and COO of ImagePoint that he decided to buy
franchise rights to the concept as an investment for his kids.
full article
USA Corporation Receives 2009 Best of
Greenacres Award
I am
pleased to announce that Zone USA Corporation has been selected for the 2009
Best of Greenacres Award in the Discount Stores category by the US Commerce
Association.
In recognition of your achievement, a 2009 Best of Greenacres Award has been
designed for display at your place of business. You may arrange to have your
award sent directly to Zone USA Corporation by following the simple steps on the
2009 Best of Greenacres Award order form. Simply copy and paste this link into
your browser to receive your award:
Each year, the US Commerce Association (USCA) identifies companies that we
believe have achieved exceptional marketing success in their local community and
business category. These are local companies that enhance the positive image of
small business through service to their customers and community.
Also, a copy of the press release publicizing the selection of Zone USA
Corporation has been
printed. The USCA hereby grants Zone USA Corporation a
non-exclusive, royalty-free license to use, reproduce, distribute, and display
this press release in any media formats and through any media channels.
An Award Code has been assigned to your company that can be used on our website
for quick access to your award information and press release.
Sincerely,
Ashley Carter
Selection Committee Chair
US Commerce Association
Dollar Stores performing well in Current Economic
Crisis
Customers that have been hit economically are not the only ones
that have profited from Dollar Stores. Dollar Store stocks are outperforming
other retail stores, making them a good bet for investors, despite our current
recession. More Dollar Store News
#9
Dollar Store Holiday and Christmas Season
Many dollar stores and retail shops in general started their Christmas
sales early to bring up sales.
We think they beat the numbers of other retailers in getting shoppers even
though it is no surprise that we have a down economy and people are reducing
drastically their holiday budgets. Almost 70 percent of shoppers say the dismal
economy will change very much the way they shop, according to Deloitte’s 23rd
Annual Holiday Survey. And if all goes the way it has, Dollar Store and Discount
stores are expected to be the most popular destinations of this Holiday and
Christmas season. Dollar Store
Weekly column #46 by Michael Warshower.
Dollar Store News in Indiana
As retailers are getting tight and shutting down
stores, dollar stores are still growing in large numbers, filling the gap for
many store shoppers looking to save money on everything they can from hardware
to toys to cleaning products.
"Dollar stores are one of the few stores right now that are expanding. They
typically do well when the economy is not going well," said Mark Perlstein, a
principal at Sitehawk Retail Real Estate Group in Indianapolis.
Dollar Store News 8
How
is the the financial turmoil affecting dollar stores and new store openings ?
These last 2
weeks have shown that the United States will have to drastically make changes in
regulating financial institutions, lending policies, and Wall Street firms. In
our industry we have been affected in many ways as dollar store shoppers are
picking and choosing what they buy very carefully and new dollar store owners
that are entering
Dollar
Store News 7
Couple say
dollar store makes sense
 Posted
on Sun, Nov. 28, 2004
New owners give up other careers, say the market is
favorable
LEIGH PRESSLEY
SPECIAL CORRESPONDENT
GASTONIA - For
some folks, this is a time of year to reconnect with family and friends,
celebrate with neighbors and reflect on blessings.
For others, it's an
overwhelming stress-fest, consumed by juggling tasks including decorating
the house, mailing holiday cards, baking cookies, attending parties and
buying presents.
Dollar
Store News 2
|
THE BUCK SHOPS HERE
Dollar stores, once the domain of lower-income households, are reaching out
to -- and snagging -- higher-income customers
Sunday, December 05, 2004
By Ronette King
Business writer
Steve Dooley is a modern sort of guy taking care of himself in a modern
retail way.
A part-time graduate student who works two part-time jobs to support
himself, he's a regular shopper at the Family Dollar store on South
Carrollton Avenue, cruising the aisles among the college students and
working moms.
Dollar Store #3
|
Police seek suspect in dollar store heist
ARKANSAS DEMOCRAT-GAZETTE
Posted on Wednesday, September 14, 2005
SPRINGDALE — Police are looking for a man who they believe
tied up a store clerk Monday evening after robbing a store.
No one was injured in the robbery at the Dollar General Store at 507 E.
Emma Ave., Springdale police Cpl. Chris McCarville said Tuesday. The incident
occurred at 7:15 p.m.
The clerk said the man walked into the store and went directly to the
office in the back of the building, reports state. The man then pulled a knife
and demanded money from the clerk.
He tied the clerk up after stealing an undetermined amount of money,
McCarville said. She was found a short time later by another employee.
Dollar
Store News 1 |
Dollar Tree plants a new seed: Occasions party-planning
store
CHESAPEAKE - Dollar Tree Stores Inc. is testing a new concept called
Occasions that specializes in products for parties and events.
Occasions took over a former Dollar Tree store space at Volvo Parkway Shopping
Center, just up the road from the retailer's headquarters, in late September.
It's the only store of its kind, for now. It focuses on party planning - from
invitations and decorations to plates, cups and napkins - with extras such as
fancy chocolates, candles and toys thrown in.
Occasions isn't beholden to the "everything's $1" mantra of its company's
namesake chain. Its prices range from 49 cents for a sheet of scrapbooking paper
to $83.95 for a pair of crystal champagne flutes.
"With the price point restriction lifted, we can get a little more creative,"
said Tom Mills, the Dollar Tree vice president overseeing the new concept.
Occasions carries plastic tabletop items, for example, that would be too
expensive for Dollar Tree to sell for $1, Mills said.
Occasions is the first original concept for Dollar Tree since its own founding
in 1986 as a spinoff from the toy store chain that preceded it. Dollar Tree,
which sells plenty of gift wrap and paper plates in its own 3,232 stores, saw
the party arena as an underserved market, Mills said.
A pack of 20 fancy gold-colored plastic plates costs $8.49 at Occasions.
Cocktail napkins featuring a margarita glass and the phrase "Livin' the lime
life!" runs $2.29 for eight. A $14.99 price tag hangs on a pi?ata shaped like
popular children's character Dora the Explorer.
Dollar
Store News 4 |
Closings prompt executives to become their own bosses.
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Neilsen Information
Cheap Americans Are Here to Stay
When you see a Bentley parked outside of a 99 Cents Only store, as one Los
Angeles resident did recently, it’s pretty easy to see why it will be a long
climb back for retailers.
At the high end and the low end of the scale, American
consumers are struggling with high unemployment, lower home and stock prices,
and historic debt levels. So it’s not surprising that they want a dirt-cheap
price these days and they're finding it at Dollar Tree (DLTR).
The Chesapeake, Virginia-based discounter, which has a
market cap of $4.57 billion, sells a range of products including beauty aids,
beverages, stationary, and balloons – all priced at $1 or less.
On Wednesday, Dollar Tree reported a 51% bump in its fiscal
second-quarter earnings, beating estimates, raising guidance for the full year,
and thrilling investors, who moved hard into the company. The stock was up more
than 6% in afternoon trading.
In fact, investors clearly think the retailer is a good deal
right now. The stock has moved higher, up 14% in the past three months. The
question is whether Dollar Tree looks poised to continue doing well even when
the tough times pass. As the financial crisis eases, and some kind of normal
functioning returns to our economy, will cash-strapped consumers still make a
bee-line for a bargain-basement retailer like Dollar Tree?
Analysts believe they will, and they’re telling clients to
buy the shares.
“Dollar Tree is moving towards our bull case and from our
base case,” wrote Morgan Stanley analyst Mark Wiltamuth in a research note. “We
believe the new customers Dollar
Tree is capturing in the downturn will continue shopping there in an upturn.”
Wiltamuth rates Dollar Tree “Overweight” with a price
target of $52.
Over at Standard & Poor’s, retail analyst Jason Asaeda is
similarly bullish. “We see DLTR's expanded assortment of everyday necessities
driving healthy growth in store traffic from new customer gains and increased
shopping frequency,” Asaeda wrote.
The analyst lifted his target price to $59 from $50.
For a technician’s perspective, we checked in with Katie
Stockton, chief market technician at MKM Partners. She noted that Dollar Tree
managed to reach a new all-time high this week, exceeding long-term resistance
at its 2007 and 2000 highs.
“There is room for a phase of outperformance versus the S&P
Retail Index (RLX), which Dollar Tree stores has lagged year-to-date,” Stockton
argues. “The relative strength comparative is in a long-term uptrend, which
suggests pullbacks be viewed as buying opportunities from a technical
standpoint.”
Former resistance near $46 now can be considered initial
support, the technician added.
It’s not hard to understand the attraction of discount
chains right now like Dollar Tree, Family Dollar Stores (FDO) or Wal-Mart (WMT).
Understandably nervous consumers are looking for bargains, as they save more and
work off a big debt load.
Joseph Battipaglia, chief investment officer at Washington
Crossing Advisors, notes that the household debt to income ratio is 40% higher
than the last consumer-led recession in 1990-91, and the debt to equity ratio
for households is also 40% higher.
Little wonder then that consumers are snapping shut their
wallets: According to a survey released by Deloitte LLP last month, 32% of
Americans said they are saving more, up 10% from a year earlier.
And even as the initial aftershocks of this financial
upheaval abate, and high-pitched panic moderates to general unease, the dramatic
change in how consumers think about spending and saving won’t quickly revert to
the carefree habits of the go-go years.
“[T]he shift in aggregate spending, savings, and attitudes
about debt are likely a longer-term, secular shift and not easily reversed,”
Battipaglia wrote in a recent research note.
This shift should work to the benefit of discounters like
Dollar Tree.
It’s not the only dollar store seeing opportunity in the
new era of cheap. Dollar General filed to raise as much as $750 million in an
initial public offering as KKR, owner of the discount retailer, plans to take
advantage of a rebound in equity markets.
Business At Dollar Stores Booming During Economic Recession
As many try to find their way in a tough economy, some are turning to discount
stores for relief. Well that relief is transferring into multi-million dollar
profits for a national dollar store. WFMZ's Dwayne Parker has the story.
>> REPORTER: Kim Silcox is doing her back-to- school shopping for her son at the
dollar store.
>> KIM SILCOX: Because with the way the economy is right now you got to stretch
your dollar as far as you can.
>> REPORTER: Kim is one of many customers increasing the popularity of dollar
stores in a tough economy. The Dollar Tree just announced an almost 12% increase
in2nd quartersales that translates into a consolidated net sales total of $1.22
billion dollars.
>> SHELLE DAVIS: At Dollar Tree we believe we have a good mix of things people
need which are your basic consumable stable items, but in a recovering economy,
in a down economy or a booming economy people still want to celebrate life and
who doesn't like to save money?
>> REPORTER: Now the Dollar Tree says its leading selling categories are No. 1
Health and Beauty. No. 2 cleaning products No. 3 Party Supplies. And No. 4 Food.
>> WENDY LIEBMANN: Dollar stores take a bite out of Wal Mart, especially in
communities where they both live together-kind of their entry price point-I go
to the dollar store first and then I fill out when I go to Wal- Mart.
>> ERIC SOLA: Your dollar goes far at the dollar store.
>> REPORTER: Dollar Tree representatives also attribute their multi-million
dollar profits to in-store technology provides detailed information of products
soled in its over 3,500 stores, as well as their efficiency in keeping products
stocked. And as for Kim, her bill came to just over $30 dollars.
>> KIM SILOX: More for your money basically, more for your money.
>> REPORTER: With the money she saved, she said she'd treat her son to some ice
cream. Saving money and reaping the rewards.
Ten tips for back-to-school shopping on a budget
The National Retail Foundation says that the average family with kids in
grades K through 12 will spend $548.72 on school merchandise this year,
including clothing, shoes, school supplies, and electronics.
There are some strategies that parents can use to keep their school supply
expenses within their budget. Here are some suggestions:
1. Watch the sales carefully. Discount and office supply stores often sell
school supplies at a loss to get you in the door. Last year, it wasn’t unusual
to find rulers for one cent, for instance.
2. Reuse school supplies from last year whenever possible. Just because it’s a
new school year doesn’t mean you have to go out and buy a new backpack, lunch
box, ruler, or scissors if last year’s is in good shape. The same thing applies
to shoes and school uniforms – don’t assume you have to start the new year with
all new apparel.
3. Check prices online. From school uniforms to shoes to calculators and more,
you can find school supplies of all kinds online, frequently shipped free and
sometimes without sales tax.
4. Investigate sources of gently-used school uniforms. Goodwill Stores often
have donated uniforms in good shape. Consider uniforms handed down from older
siblings or from neighbors. Check out garage sales.
5. Give your teenager a budget and let him decide how to best spend it. He may
be willing to wear shoes from Payless or Kmart in return for being able to buy
two pairs of trendy jeans. Discourage fad clothing that may be costly to replace
when it’s no longer in style.
6. Shop at dollar stores. You may find some items substantially cheaper at a
dollar store. Most dollar stores have a good selection of pens, pencils,
markers, and folders.
7. Keep a copy of your child’s supply list with you. Mark off what you’ve
already bought so you don’t buy duplicates, and you’ll have a record of what you
still need to buy if you come across a sale.
8. Don’t procrastinate too long. The selection of school supplies at the
discount stores will be picked over before school starts, and you may end up
having to pay more elsewhere.
9. Consider off-brands. Unless your school specifies the brand of glue or
crayons your child requires, you may find store brands or lesser-known brands to
be substantially cheaper than what you usually buy.
10. Sign up online for newsletters for your favorite retailers. They often send
subscriber-only coupons you can use online or in store for additional savings or
private sales events.
Back-to-school can be an expensive time, but with a little planning, you’ll be
able to get everything you need within your family’s budget.
Cutting college costs
College is expensive enough these days. The cost of tuition seems to go up
each year. Fighting rising tuition costs is like fighting higher taxes; it is an
art form that’s usually left to the professionals. Furthermore, on top of it all
come the extra costs associated with education: the books, supplies and
transportation. These costs are rising each year also. Usually college students
are on tight budgets, and these extra costs cannot be tolerated. So, here are
some ways to skirt those costs.
Books are a college student’s highest cost aside tuition. New books range from
$100 - $300 for each class. A full time student will take 3 to 4 classes at a
time. Do the math. You’ll find that a semester’s worth of books could top $1,200
or more. There are a few ways to bring this cost to its knees. Many students are
buying used books from others who’ve taken the courses before. Buying used saves
at least half if not more. It can sometimes be aggravating, though, when trying
to read through someone’s highlighted passages or coffee stains. Another way to
get books at cut-rate pricing is to use an online media source called Half.com.
Half.com is associated with Ebay, but is far more user friendly. Half.com is a
conglomeration of media sellers (books, movies and music). On Half, you can find
the exact book you need via the ISBN number (that’s the number under the bar
code), author or title. You are able to choose the quality of the item (brand
new, like new, very good, good and acceptable). For books with brand new
quality, students will save at least 50% from bookstore prices. For books with
acceptable quality that are worn and marked inside, students can expect to pay
10 cents on the dollar or less. Students are also able to choose the quality of
the seller. Sellers earn a rating based on buyer reviews and number of items
sold. This is done to inspire confidence that buyers will receive their books on
time and in the agreed upon condition. Half.com is an incredible source for
savings.
The frenzy of buying school supplies is upon us. Ads are brightly colored to get
people in the stores and buying backpacks, binders, paper, pens, agendas,
portfolios, notebooks, book covers, file keepers, staples, report covers and
more. This expense can add up fast. You can’t avoid the need for these items,
but you can duck the exorbitant price tags. First, go to the Dollar Store.
Savings from the Dollar Store is compounded when it comes to paper goods. That
is where the consumer saves the most money. Second, go to Good Will. Besides
grandpa’s checkered golf pants, you may find great deals on the occasional
binder or folio. Also, try shopping off-season and see what you can pick up on
clearance racks in the Targets and K-marts. Sometimes, there’s a
school-sponsored shopping event that may prove helpful. Furthermore, check
online shopping sources like Rebates4All.com in which students can find a sale
plus get an automatic rebate too.
Finally, there’s the cost of transportation. It is possible to use up to a
gallon of gas a day just going to school and back. Plus there’s the added
upkeep, maintenance, and wear on your vehicle. Put some thought into carpooling.
Carpooling also provides a forum where students help each other in various
subjects on the way to school. Furthermore, riding the bus will help the student
cut transportation costs. This also provides an atmosphere in which the student
can read, study or get organized on the way to class. Another point of view for
saving money on transportation cost is to shop online for books and school
supplies. Not only does this cut your costs, it helps the environment too.
The way things are, prices will only go up. If you can find away around this
phenomenon, you’ll be ahead of the game with money in your pocket, though
tuition tries to stab at that. Nonetheless, students can stay on their budgets
by saving on ancillary college costs. Book savings comes via used sales or
online media sources. Students can save up to 90% or more this way. School
supply costs can be minimized with off-season purchases, Dollar Store shopping
or the occasional Good Will find. And the transportation alternatives not only
provide for cost savings, but for class prep which has a value all its own.
Tips for back to school
August is here and it is that time again folks: Back to School!! This is the
time where families are purchasing new clothes and supplies and teachers are
finalizing their syllabus and brainstorming ideas for the school year. This
month can be especially stressful when it boils down to being cost efficient in
the pursuit of being ready to begin the 2009-2010 school year.
The need for school supplies ranks high on the list for teachers, parents, and
students alike. There are quite a few ways to save your pennies as summer comes
to a close. For example, The Dollar Store is a great for stocking up on
supplies. Pens, pencils, highlighters, notebook paper, and other supplies are
available for purchase. Stores such as Target, Walmart, and Office Max generally
will have a period of time when school supplies are at their lowest.
The Orlando Sentinel posted a list of events in the Orlando area that offer free
shots, school supply give aways, and more. See the link below for more
specifics:
http://blogs.orlandosentinel.com/news_education_edblog/2009/07/a-roundup-of-area-backtoschool-events.html
Outside of the supplies, new clothes are staples for the start of a school year.
However, the lure of a stylish new look can be punishment to the wallet. There
are ways to fashion your wardrobe without going bankrupt. If stores such as
Hollister or Abercrombie are outside of your budget, look to establishments like
Kohl’s and Old Navy for your trendy needs. Associated Content has put together
more tips for all your back to school needs (http://www.associatedcontent.com/article/887895/back_to_school_clothing_tips_for_keeping.html).
Start this school year off right and save money while looking your best and
stocking up on supplies to succeed in the classroom!
HOUSTON (KTRK)
-- While most retailers are suffering their worst
downturn in 20 years, dollar stores are seeing record profits.
[SUPERSAVER BLOG: Learn daily ways to save cash ]
Many believe it's because higher-income shoppers who weren't
dollar store fans before are checking them out now.
ABC13 Super Saver and single mom, Erin Libranda has spent
years shopping for bargains
But, now that saving is "chic," she's noticing a new trend:
first-time dollar-store shoppers who are surprised by what they find.
Erin went to three different Houston dollar stores to find
what she considered "surprise" deals.
Her first stop was the 99 Cents Only store, where everything
is under a dollar, including a 100% silk tie, with the tag still on it from the
original store, as well as little boy's swim trunks.
"All of the cards are 69 cents, all of the bags are 79
cents," Libranda said. "There are high-quality bags, normally $4 to $5 in the
stores."
Her next stop is Dollar General. But, not everything there is
a dollar. And Erin found some of the prices to be high; however, she did find
some good deals, like a pool cover-up for $4.50, among other items.
Her final stop was Family Dollar, where she found deals on
home décor, like a king size comforter set for $40, paintings for $10, and a
lamp for $12.
In all, three different dollar stores, each hoping their
deals will keep the first-timers coming.
HOUSTON (KTRK)
-- While most retailers are suffering their worst
downturn in 20 years, dollar stores are seeing record profits.
[SUPERSAVER BLOG: Learn daily ways to save cash ]
Many believe it's because higher-income shoppers who weren't
dollar store fans before are checking them out now.
ABC13 Super Saver and single mom, Erin Libranda has spent
years shopping for bargains
But, now that saving is "chic," she's noticing a new trend:
first-time dollar-store shoppers who are surprised by what they find.
Erin went to three different Houston dollar stores to find
what she considered "surprise" deals.
Her first stop was the 99 Cents Only store, where everything
is under a dollar, including a 100% silk tie, with the tag still on it from the
original store, as well as little boy's swim trunks.
"All of the cards are 69 cents, all of the bags are 79
cents," Libranda said. "There are high-quality bags, normally $4 to $5 in the
stores."
Her next stop is Dollar General. But, not everything there is
a dollar. And Erin found some of the prices to be high; however, she did find
some good deals, like a pool cover-up for $4.50, among other items.
Her final stop was Family Dollar, where she found deals on
home décor, like a king size comforter set for $40, paintings for $10, and a
lamp for $12.
In all, three different dollar stores, each hoping their
deals will keep the first-timers coming.
HOUSTON (KTRK)
-- While most retailers are suffering their worst
downturn in 20 years, dollar stores are seeing record profits.
[SUPERSAVER BLOG: Learn daily ways to save cash ]
Many believe it's because higher-income shoppers who weren't
dollar store fans before are checking them out now.
ABC13 Super Saver and single mom, Erin Libranda has spent
years shopping for bargains
But, now that saving is "chic," she's noticing a new trend:
first-time dollar-store shoppers who are surprised by what they find.
Erin went to three different Houston dollar stores to find
what she considered "surprise" deals.
Her first stop was the 99 Cents Only store, where everything
is under a dollar, including a 100% silk tie, with the tag still on it from the
original store, as well as little boy's swim trunks.
"All of the cards are 69 cents, all of the bags are 79
cents," Libranda said. "There are high-quality bags, normally $4 to $5 in the
stores."
Her next stop is Dollar General. But, not everything there is
a dollar. And Erin found some of the prices to be high; however, she did find
some good deals, like a pool cover-up for $4.50, among other items.
Her final stop was Family Dollar, where she found deals on
home décor, like a king size comforter set for $40, paintings for $10, and a
lamp for $12.
In all, three different dollar stores, each hoping their
deals will keep the first-timers coming.
Yes, Family Dollar Profits Jumps again 33%
NEW YORK (Dow Jones) -- Discounter Family Dollar Stores Inc. said Wednesday that
its fiscal second-quarter profit rose 33%, aided by shoppers seeking bargains in
the economic downturn.
The company also gave third-quarter and full-year profit forecasts that exceeded
Wall Street expectations.
Executives said on a conference call that Family Dollar has seen more trips and
higher average purchases from its core low income customers but also has won
additional visits from more middle income customers. The company has expanded
its product assortment, adding more traffic-driving consumable items while
paring back on discretionary products as apparel sales continued to be soft. It
also has made stores reduce clutter to make it easier to shop.
"The dollar store businesses continue to outperform in the weak economy," said
Deutsche Bank analyst Mike Baker.
Discounters including Wal-Mart Stores Inc. have outperformed the other industry
segments with shoppers cutting back on non-essential items, trading down and
seeking value on basic items, analysts have said.
Net income rose to $84.1 million, or 60 cents a share, from $63.3 million, or 45
cents, a year earlier. Sales in the quarter ended Feb. 28 rose 8.7% to $1.99
billion.
Comparable-store sales climbed 6.4% as the company increased, for the third
straight quarter, customer traffic and the amount shoppers spent on each average
transaction. The discounter, which operates more than 6,600 stores in 44 states,
said food and other consumable items led the demand increase.
Second-quarter gross profit margin widened to 33.7% from 32.7% after the company
lowered seasonal discounts and reduced inventory theft and freight expenses.
Family Dollar forecast full-year per-share profit of $1.90 to $2 with sales up
5% to 7% and sales at stores open at least a year increasing 3% to 5%. It sees
third-quarter earnings of 54 cents to 58 cents a share.
Analysts polled by FactSet Research estimated, on average, per-share profit of
60 cents in the second quarter, 50 cents in the third quarter and $1.89 for the
year.
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