Family Dollar (NYSE:FDO) announced it would start stocking shelves with beer and wine. The deep-discounter already garners a majority of sales from grocery items and the chain hopes to increase the average ticket. Family Dollar experimented with selling alcohol in about 200 stores this summer, reported Bloomberg. The results were strong enough to take the expansion nationwide. The announcement came during a quarterly shareholders meeting in which the company reported weak quarterly earnings. Although food, beer and wine tend to be low margin items, they also bring shoppers back into the store more frequently, a way in which Family Dollar hopes to battle trip consolidation. Profit margins have been steadily sliding for three years and the company is undergoing a transition to change that.
_________________________
Providing alternative truths since the invention of time
Previous Thread
Index