Canadian dollar-store operator Dollarama reported an increase in sales and an improvement in net earnings for the third quarter ended Nov. 3. The quarter was characterized by continued growth in the store network and solid comparable store sales growth.
Increased customer traffic helped drive Dollar Tree’s third-quarter results. The retailer cited growth in consumer basics as well as seasonal and variety merchandise, and said its higher margin variety categories are growing at a faster pace.
Surging profits and a 6.7% first quarter same-store sales increase prompted Dollar General to raise its full year profit forecast by three cents. Family Dollar is scheduled to report comparable results later this month as the small discount store remains on a roll.
Walk into a Target store anywhere in the U.S. and it’s a safe bet there will be at least a few customer rummaging through the bins of single price point merchandise in the Dollar Spot located just inside store entrances. The ever changing assortment’s treasure hunt appeal and single price point value proposition are simply too much for many customers to bypass. It is enough to make wanna-be merchants wonder if further expansion of the concept makes sense for Target, especially considering the raging success companies such as Dollar General and Family Dollar are having.
Momentum remains on the side of Family Dollar, as the company late Thursday reported another quarter of record sales and profits and the opening of 101 units, which included its first stores in California.