Invest2Growcom
Oct 15, 3:21 AM
$DLTR Hot inflation is helping DLTR today. Shares near 121.76, up about 4.71 percent, while much of the market sold off.
September inflation accelerated to 3.7 percent, and gasoline jumped 9.1 percent from the month before. That kind of squeeze tends to push investors toward retailers that help households stretch budgets, and discount names like Walmart, Costco, Dollar General, Ollie's, and BJ's were all higher too.
I see it as a defensive rotation plus a bet on shoppers trading down to cheaper essentials.
The flip side is worth remembering. The same pressure can hit Dollar Tree's core customers, which can shrink basket sizes, and higher merchandise, labor, and transportation costs can eat into the benefit.
So I'd want to see traffic gains outweigh those costs.
Follow me for more on the retail names.
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