Dec. 5 at 6:46 PM
Dollar Tree and Dollar General can’t rely on
$1 pricing anymore due to inflation and tariffs, but shoppers haven’t been deterred. Both stocks have surged—Dollar General is up about 80% this year and Dollar Tree more than 60%.
Dollar Tree beat earnings expectations, with same-store sales rising 4.2%, and customers are embracing higher-priced items, even around
$7. The chain added three million new households, most from incomes above
$100,000, highlighting wealthier shoppers trading down for bargains.
Executives across retail, including Walmart and Procter & Gamble, say consumers are becoming more value-focused, a trend that favors discount stores. Analysts expect Dollar Tree’s earnings to rise 16% next year, and the stock trades at a discount to the S&P 500. The sale of its struggling Family Dollar unit could further boost performance.
$DLTR $DG $WMT $PG $SPX