Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Reuters Today: Spanish yields seen rising at auction
Reuters Today: Spanish yields seen rising at auction - 06:21
Surprise services boost points to UK recovery
Surprise services boost points to UK recovery - 02:54
Breakingviews: Do as I say, not as I do – German wages
Breakingviews: Do as I say, not as I do – German wages - 05:04
Market Pulse: Spain under fire as investors shun bond sale
Market Pulse: Spain under fire as investors shun bond sale - 03:28
Myanmar's Kyat begins managed float
Myanmar's Kyat begins managed float - 01:59
ASEAN: territorial code of conduct draft by year-end
ASEAN: territorial code of conduct draft by year-end - 01:48
U.S. Morning Call: Stock futures down, JPMorgan to be fined
U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08
EMEA Day Ahead:: Thursday
EMEA Day Ahead:: Thursday - 03:13
3XSQ: Customer funds in question; royal return
3XSQ: Customer funds in question; royal return - 05:44
Still cashing in? Hirst retrospective
Still cashing in? Hirst retrospective - 02:32
World's biggest car delivery center
World's biggest car delivery center - 02:41
FACTBOX: Titanic the movie sails again
FACTBOX: Titanic the movie sails again - 02:20

Daily Digit: $1 spree at Dollar General

Monday, March 25, 2013 - 01:35

March 25 - Dollar General sees its strategy of $1 per item bringing in more shoppers, resulting in stronger sales growth this year, led by lower cost tobacco products, despite concerns about the economy. Conway G. Gittens reports.

▲ Hide Transcript

▶ View Transcript

The Daily Digit is $1. That's how much you will blow at the U.S. chain of variety stores Dollar General, on average. The company prices about 25 percent of its merchandise at $1 or less, and the rest below ten bucks. It works. Dollar General's fourth-quarter profit came in well ahead of Wall Street expectations despite lighter-than-anticipated sales growth. The reason - The so-called dollar store is testing sales of tobacco products and is seeing better-than-expected demand. Also, the stores that are selling the tobacco products are seeing higher foot traffic compared to other locations. Analysts are taking notice of that success. They say that, while the overall sales growth "was a bit weaker than forecast, the company more than made up for this through a better-than-expected gross margin." Dollar General normally does well when economic concerns push consumers on limited budgets to cut spending. But recently it's been under pressure from competitors led by Wal-Mart that are now focusing on cheaper products. But it looks like Dollar General is up for the challenge. The company sees its sales growth stronger than in 2012, mainly from increased demand for food and other basics despite consumers' concerns about the economy. Dollar General has strategically located its more than 10,500 stores in rural and urban parts of the United States, which means its stores are more convenient than big-box retailers such as Wal-Mart, as low-income shoppers look to chop their gasoline bills.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Daily Digit: $1 spree at Dollar General

Monday, March 25, 2013 - 01:35

Featured Videos

World Toad in the Hole Championships

World Toad in the Hole Championships

The aim of the traditional pub game originating from France is to land as many large brass coins or 'toads' in a table's small hole
Tarantula burgers on the menu

Tarantula burgers on the menu

For adventurous diners, tarantula topped burgers are available at a Durham, North Carolina restaurant as part of its ‘exotic meat’ month
Runners brave the cold for North Pole Marathon

Runners brave the cold for North Pole Marathon

Runners brave freezing conditions at top of the world in North Pole Marathon
UK firm turns discarded gum into shoes, coffee cups and combs

UK firm turns discarded gum into shoes, coffee cups and combs

Chewing gum is a blight on city streets and takes a heavy toll on the environment, say its critics. But one woman in Britain is performing modern-day alchemy on it
After oil, solar? Saudi Arabia plans ahead

After oil, solar? Saudi Arabia plans ahead

Researchers in a lab outside Riyadh are leading the kingdoms ambitious new plans to be a world leader in solar energy