Dollar Tree Buying Family Dollar

storewanderer
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Re: Dollar Tree Buying Family Dollar

Post by storewanderer » March 6th, 2019, 6:25 pm

Brian Lutz wrote:
March 6th, 2019, 3:57 pm
Dollar Tree is planning to close up to 390 Family Dollar stores in 2019 and rebrand up to 200 more to Dollar Tree stores. High rents seem to be the main culprit:

https://komonews.com/news/business/doll ... -172603848
390 stores sounds like a lot of stores but when you have 15,000 stores, it isn't really that many stores...

With that said I am not surprised to see this. Family Dollar continues to underperform. They just don't seem to generate much foot traffic.

In my area both Family Dollar and Dollar General have some "disaster" stores that have most aisles blocked by unpacked freight, mostly empty and messy shelves, and absolutely filthy floors, doors, counters, etc., and both have a smaller number of very neat and very clean stores. I haven't yet figured out what the correlation is.

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Re: Dollar Tree Buying Family Dollar

Post by wnetmacman » March 6th, 2019, 7:07 pm

storewanderer wrote:
March 6th, 2019, 6:25 pm
In my area both Family Dollar and Dollar General have some "disaster" stores that have most aisles blocked by unpacked freight, mostly empty and messy shelves, and absolutely filthy floors, doors, counters, etc., and both have a smaller number of very neat and very clean stores. I haven't yet figured out what the correlation is.
Isn't that the decor package?

I've sen the back rooms in some of these; the front is a palace in comparison.

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Re: Dollar Tree Buying Family Dollar

Post by storewanderer » March 6th, 2019, 10:34 pm

wnetmacman wrote:
March 6th, 2019, 7:07 pm
storewanderer wrote:
March 6th, 2019, 6:25 pm
In my area both Family Dollar and Dollar General have some "disaster" stores that have most aisles blocked by unpacked freight, mostly empty and messy shelves, and absolutely filthy floors, doors, counters, etc., and both have a smaller number of very neat and very clean stores. I haven't yet figured out what the correlation is.
Isn't that the decor package?

I've sen the back rooms in some of these; the front is a palace in comparison.
At least they are consistent? I am amazed how profitable Dollar General is. It just goes to show if you put up a cheap structure, on dirt cheap land, staff it with one or two employees, and price your items below the rest of the immediate area, you will draw in enough traffic to turn a profit. Despite not having a neat, clean, well stocked store. Despite questionable inventory control. Despite everything.

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