Dollar Store Stocks And A Weak Economy
By Cabot:
By Chloe Lutts
One stock that’s been popping up in a lot of newsletters recently is Dollar Tree (DLTR), a leading discount retailer. It’s not hard to see why; the stock just hit a new 52-week high, at a time when many other stocks are well off their peaks. The story here is simple: Dollar Tree owns and operates 4,101 discount stores with a wide variety of very cheap products, many priced at or around $1. According to an August 18 New York Times article, in the wake of the recession, these super discount stores are gaining newly frugal customers of all incomes. From the article: “While it’s true that low-wage earners still make up the core of dollar-store customers (42% earn $30,000 or less), what has turned this sector into a nearly recession-proof corner of the economy is a new customer base. ‘What’s driving the growth,’ says James Russo,Complete Story »
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