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In the depths of the recession, deep-discounting dollar stores gained market share as consumers downscaled, abandoning higher-end and mid-range retailers. But rising gas prices and persistent unemployment in the U.S. is keeping sales growth at the dollar stores on track, even as a weak economic recovery begins
Family Dollar Stores expects full-year net sales growth of eight to nine percent, despite fresh attempts by retail juggernaut Wal-Mart to make inroads in the discount segment.
CFO Kenneth Smith says Family Dollar is trying to hold onto customers by renovating stores and adding a range of new products.
“That formula positions us well for the future, however the competitive landscape may play out,” Smith says.