The choice of location, close to a longstanding Dollar General, is assumed by analysts to be a strategic move.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: CNN.com and DJournal.com.
I write extensively about both the Family Dollar and Dollar General discount chains for NewsBreak. My December 12th article, “Family Dollar Lowering Prices to Compete With Dollar General,” is particularly relevant to this current piece due to detailing a specific competitive strategy on behalf of the former entity.
A December 1st, 2022 CNN.com report, ”Family Dollar is a Mess. It Hopes Lowering Prices Will Help,” is excerpted in my article and adds perspective to today’s news.
From the CNN.com report: Its main competition is the much larger Dollar General, which has grown rapidly over the past decade. The companies battle for many of the same low-income shoppers in cities and rural areas, and both sell mostly food and everyday items for between $1 and $10. But Family Dollar’s prices can be 10% to 15% higher than Dollar General’s and other discount competitors. Higher prices have contributed to weak performance, so the chain is dropping those prices in an effort to better compete.
Now comes word of a new opening that underscores Family Dollar’s competitive nature, this one in the state of Mississippi.
Let us explore further.
Family Dollar, 2023
According to a February 1st article from DJournal.com, entitled “Family Dollar Under Construction on McCullough Boulevard,” a Family Dollar is under construction on McCullough Boulevard adjacent to Sonic Drive-In but a few hundred feet away from a longstanding Dollar General.
As excerpted from the report: Family Dollar's other Tupelo store is on West Main Street near Crosstown, and sister company Dollar Tree has three locations in the city. The newest store opened recently in East Tupelo. It's unclear if the McCullough location is a combination Family Dollar/Dollar Tree combo store. Several have opened in recent years in the region, with locations in Amory, Ashland, Baldwyn, Bruce, Hamilton, Mantachie and Okolona.
Dollar Tree acquired Family Dollar in 2015 for $8.5 billion, and many of the entity’s locations are combo stores.
The report went on to state: For the company's first nine months of its fiscal year that ended Oct. 29, 2022, consolidated net sales increased 7.1% to $20.60 billion compared to the period ending Oct. 30, 2021... Net income improved 33.1% to $1.16 billion and earnings per share increased 36.1% to $5.17. The company opened 341 new stores, expanded or relocated 82 stores, and closed 128 stores.
This is a developing story. In the event of pertinent updates to this matter, I will share them here on NewsBreak.
Thank you for reading.
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