Dollar General shares sank 7.5% after the dollar-store chain gave a disappointing profit outlook, thanks in part to its plan to increase spending on areas including self-checkout. Here's what its results say about the state of the discount retail market.
Share to twitterDollar General was the biggest S&P decliner on Thursday after it gave a disappointing profit outlook for the year. After reaching a record high on Wednesday, Dollar General shares sank 7.5% on Thursday after the largest U.S. dollar-store chain gave a disappointing profit outlook, thanks in part to its plans to increase spending on areas including self-checkout and to take distribution of fresh grocery items in-house.
However, the demand didn’t come without cost: The retailer's gross margin narrowed to 31.1%, from 32.1%, as it increased discounts. And keeping prices low to attract shoppers will remain key for discounters. Vasos said that while Dollar General’s core customer is “feeling better about having a little bit more money in her pocket,” that’s coming from “working more hours, and in some cases, multiple jobs.”said.While fashion and other retailers including Victoria’s Secret and Gap brand are shrinking their physical footprints, Dollar General—which already had 15,370 stores in the U.S. as of Feb.
“We expect DG Fresh to allow us to do a better job of tailoring our product selection to fit the needs of our customers, particularly in rural areas,” Vasos said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dollar General will open 975 stores this yearDollar General says it will open 975 new stores in the US this year and remodel 1,000 older stores
Read more »
Dollar General 2019 profit forecast disappoints, shares fall 6 percentDollar General Corp forecast 2019 profit below analysts' expectations on Th...
Read more »
Dollar General is sounding the alarm on the economy and says its profits could suffer as its low-income customers start hurtingDollar General CEO is preparing for a weaker economy in the second half of 2019.
Read more »
Dollar General is defying the retail apocalypse and opening 975 stores — here's what it's like to shop thereDollar General is opening 975 stores this year while many other retailers close locations.
Read more »
Dollar extends loss after weaker-than-expected jobs reportThe dollar extends its losses on Friday, following a weaker-than-expected February U.S. jobs report.
Read more »
Ex-NY official convicted in multimillion-dollar bribe case: prosecutorsA former top elected official on New York's Long Island was convicted on Fr...
Read more »
Even plumbers need software: How Glendale's ServiceTitan became a billion-dollar start-upServiceTitan, a software company for blue-collar businesses such as plumbers and HVAC installers, is one of L.A.'s sleeper unicorns — and it all started because the founders' dads needed help with their Glendale contracting businesses.
Read more »
Analysis | Would ‘every small dollar donated’ be matched 6 to 1 under the House Democratic plan?House Minority Leader Kevin McCarthy (R-Calif.) attacked H.R. 1, the centerpiece of House Democratic efforts to change election funding and practices.
Read more »
Here's Amazon's multibillion-dollar strategy to bring Hollywood into its shopping mallAmazon is spending far less than Netflix on content, but its video service is also going broader with live sports and third-party channels.
Read more »