retail news in context, analysis with attitude

The Street has a story about how, "judging by the strong first-quarter results from the nation's dollar stores, U.S. consumers have embraced a mindset of thrift. Dollar General, which operates more than 12,700 stores across 43 states, notched a solid 2.2% same-store-sales increase in the first quarter. Both customer traffic and the average amount spent by a shopper increased. Sales jumped in all areas of Dollar General's businesses, led by demand for consumable goods, such as paper towels and home-cleaning products. Sales in the company's consumables segment, which represents more than 76% of its total business, rose 8% from the prior year.

At the same time, the story says, "Dollar Tree was no slouch in the first quarter, likely benefiting from much of the macroeconomic trends as smaller rival Dollar General. Dollar Tree, which has about 14,000 total Family Dollar and Dollar Tree locations in the US ... Same-store sales rose 2.3%, due to higher levels of customer traffic and more spending per customer, similar to what transpired at Dollar General."

Not only are both dollar store companies growing in terms of millennial shoppers, but both companies managed to outperform Walmart and Target in terms of quarterly same-store sales growth.
KC's View:
Given what I learned recently about student debt, and what I shared here on MNB, it isn't surprising that value-driven formats are doing well.