Dollar stores gain as Americans stretch budgets
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Dollar General and Dollar Tree both reported second quarter increases in average ticket and traffic amid a tough macroeconomic backdrop. The CEOs of both major U.S. dollar stores on Thursday said consumers were focused on "value and affordability" in the second quarter - a dynamic benefiting Dollar General and Dollar Tree's earnings. Dollar General's Q2 net sales jumped 5.2% year over year to $11.3 billion, according to a company press release. Its 3.5% same-store sales increase reflected a 2% increase in traffic and a 1.5% increase in average transaction amount. The company's earnings exceeded its own expectations even before considering the benefit of tariff refunds, CEO Todd Vasos said in a statement. Meanwhile, Dollar Tree reported total sales grew 7% year over year to $4.9 billion . Same-store sales increased 3.7% due to a 3.3% jump in ticket and a 0.4% increase in traffic. Heightened gas prices particularly benefited traffic to Dollar General, which has a stronghold in rural communities across the country. "The sales lift was driven by both traffic and a slight uplift in basket values," GlobalData Managing Director Neil Saunders said in emailed comments. "The former dynamic got a small boost from higher gas prices which, especially in rural areas, make the proximity and shorter drive-times of Dollar General stores a bit more attractive. We have seen this dynamic play...
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