Buyers abandon the general dollar, the data show - this is why
The retailer at a reduced price has trouble bringing customers to its stores.
The retail apocalypse can show signs of improvement, but that does not mean that retailers do not struggle. Recent financial reports of large companies such as Target ,, Macy And Home Depot all showed a clear drop in sales in all areas. From now on, the latest financial income from Dollar General reveal that the reduced price retailer also loses customers. Read more to find out why buyers abandon Dollar General.
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Dollar General is "not satisfied" with his latest income.
As with the other retailers, the latest financial results of Dollar General are worrying.
In a August 31 Press release , General Corporation Dollar published data for the second quarter of its 2023 fiscal year, which ended on August 4. According to the press release, sales of store stores in the retailer decreased by 0.1% compared to the same quarter last year.
Although it may not seem much, business sales have fallen below his forecasts For four consecutive quarters, Reuters reported. As a result, its shares fell 18%.
In a declaration that accompanies him, Dollar General CEO Jeff Owen admitted that the retailer is "not satisfied" with these financial results as a whole.
Better life Contacted Dollar General to find out more about its latest financial results, and we will update this story with the answer.
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Buyers do not visit the retailer as much.
Net sales of Dollar General increased by 3.9% for the second quarter of 2023. But this increase was "mainly motivated by positive contributions for the sales of new stores", according to the company's press release. Meanwhile, this growth was "partially offset by a slight drop in sales at comparable stores," added the retailer.
But what made store sales with comparable stores from Dollar General? The company said this decrease was "driven by a drop in customer traffic". And this drop would have been even greater if buyers did not spend, on average, a little more in their transactions.
"Sales with stores comparable in the second quarter of 2023 have included decreases in each of the home, seasonal and clothing categories, partially offset by growth in the consumable category," said Dollar General.
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Sales should not improve in the next half.
General dollar buyers are move their expenses towards food and the essentials, and fall back on other purchases, Wall Street's journal reported. AE0FCC31AE342FD3A1346EBB1F342FCB
"Our main customers continue to tell us that they feel financially forced," Owen told the newspaper, adding that the retailer has worked to avoid transmitting higher prices to his customers, which went so far as to reduce prices in some areas.
Neil Saunders , the retail analyst and general manager of GlobalData, told CNN that the main customers of Dollar General are feel a constraint Due to the "cost of living crisis" and that the situation should not improve in 2023.
"This has been exacerbated by Snap payments reductions, because the temporary pandemic advantages have ended. Consequently, low -income buyers reduce uncommon and indulgent purchases of the chain in order to save money" , said Saunders. "Unfortunately, this dynamic will not change from the moment because, if anything, finances will tighten during the second half."
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Dollar General also said that the flight injured its profits.
During its second quarter, the operating profit of Dollar General also dropped from 24.2% to 692.3 million dollars. But it was not only the result of the drop in sales retailers at comparable stores and lower consumption traffic. The company said that theft, or "increased shortcut", also affects its profits.
CFO General in dollars Kelly Dilts told analysts on August 31 that the retailer now expected to see a Loss of $ 100 million Fox Business reported.
"The retractable environment continued to worsen," said Dilts when calling results. Meanwhile, the company "strives to reduce these levels thanks to several targeted actions," she added.
