Shop Talk

Retailers, consumers and prices

Check Out Line: Save a buck, drive a share price

April 8, 2009

STORM-IKE/Check out the higher profits at discounter Family Dollar Stores.

Family Dollar, which prices most of its merchandise below $10, and other discounters like Wal-Mart and Dollar Tree, have been flourishing in the recession as consumers turn to them for low-priced essentials like food and cleaning supplies.

Family Dollar’s success in turn pleased shareholders, who pushed up the company’s shares in pre-market trading.

Sales and earnings in Family Dollar’s fiscal second quarter rose almost 9 and 33 percent, respectively, and the company boosted its financial forecasts for the second time.  Chief Executive Howard Levine said the current environment has resulted in more budget-minded consumers.

“In today’s challenging economic environment, families of all incomes are
looking for ways to save money,” he said in a statement, citing market share gains.

Family Dollar is more the exception, however, as most U.S. retailers are likely to report lackluster March sales on Thursday.  And things are still grim, according to the head of the Dallas Fed.

Also in the basket:

Constellation Brands profit a penny shy

Bed Bath & Beyond profit tops view, shares rise

Ruby Tuesday adjusted profit tops Street, shares rise

Kimberly-Clark launches recycled paper products

New label law shakes up U.S. meat industry

(Reuters photo)

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