Discounters like Dollar General and Dollar Tree had soaring stock prices due to consumers flocking to their stores this year. This week, Dollar General shares went up 13.71% to close at $222.13. Dollar Tree shares jumped 21.87% to close at $162.80. The main reasons behind were the surging inflation and the rising prices of goods. The discount retailers noticed that shoppers buy a mix of varied products from their stores. Dollar General said it anticipates net sales growth of about 10% to 10.5%, compared with its previous expectation. The strategies of these discounters offer three takeaways to follow for grocery executives:
1, A mix of diverse merchandise attracts more shoppers as they buy more consumables like carbonated beverages, salty snacks, and cookies.
2, These retailers are expanding their retail spaces and offerings to lure more shoppers. They highlight cheaper products to make them prominent.
3, Despite rising costs, these discount retailers have managed to keep the prices of their products decreased. Keeping a check on inventory, self-checkout technology, and increasing freight are some of their strategies to keep profits from hurting.
