Dollar stores are struggling to win over bargain hunters — here’s why
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As shoppers look for value, dollar stores might seem to be logical destinations. But that penny-pinching mentality hasn't been enough to lift sales for Dollar Tree and Dollar General . Shares of the deep discounters have plunged so far in 2024. The retailers have each cut their full-year forecasts because of weaker-than-expected sales. And both have had leadership shakeups: Dollar General and its former CEO Jeff Owens parted ways in October 2023, and Dollar Tree CEO Rick Dreiling stepped down Nov. 4. Dollar Tree is also exploring selling off Family Dollar , its more grocery-focused brand. Those results are a sharp turnabout for the dollar stores, which were once Wall Street darlings. The struggles have put scrutiny on the two retailers, which will report quarterly earnings this week. Dollar General and Dollar Tree stores Getty Images Peter Keith, a retail analyst for Piper Sandler, said a challenging mix of factors hurt the retailers. Lower-income customers, who ten...