New York—It’s pretty difficult to eclipse retail earnings week especially with profit misses and lowered full year forecasts that have plagued retailers. But the dollar store battle managed to garner much of the limelight this week. Dollar stores—where much of the merchandise actually sells for $1—fared fairly well through the Great Recession, taking market share from larger mass merchants such as Walmart and Target. They have continued to be resilient as more American families are on tighter budgets.
After Dollar Tree bid on Family Dollar, Dollar General stepped in and upped the ante. But by week’s end Family Dollar rejected Dollar General’s higher, saying it would cause anti-trust issues. The decision on what will happen with Dollar Tree’s bid is still pending. Meanwhile Dollar General maintains its analysis found it could resolve any regulatory concerns about competition.
As for earnings week, it’s been lackluster. According to Thomson Reuters, of the 29 retailers that have reported second quarter earnings, 45% missed analysts’ average estimate, 38% exceeded it and 17% were in line.
As for revenue, 54% missed the analysts’ consensus and 46% posted higher sales.
For the top 10 online articles of the week, see below:
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