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Stock Strategist Industry Reports

Can Dollar Stores Defy Retail's Woes?

Small tickets and low-income customers are safeguards.

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Dollar and discount chains have been spared the pandemic’s ill effects on the retail sector, with their essentials-oriented store assortments, low prices, and proximity to customers propping up sales. Dollar Tree’s (DLTR) Family Dollar chain and Dollar General (DG) have shown strong to exceptional comparable sales growth through the first nine months of fiscal 2020. The two chains have outperformed namesake Dollar Tree stores, which carry more discretionary items, unlike the food, beverage, personal care, and household essentials-heavy assortments at Family Dollar and Dollar General.

Zain Akbari does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.