The Future of the Dollar Store.

September 10, 2008 – 8:36 pm – No Comment

There are plenty of stories floating around about the economy, rising costs of goods and even shrinking items at the grocery store. Many fast food places are even turning their dollar menu into a value menu. I was at Wendys to get a baked potato a couple weeks ago and the price has gone up from $1 to $1.39. I’m not going to fight over $.39, but I noticed.

Anyway, I am thinking, where does this leave the dollar store? I have always gone into the dollar store and found gems as well as junk. Sometimes I can’t believe what you can actually get at the dollar store for..well…a dollar, but if you were to buy the same item in Wal-Mart it could be over $3.

At the end of August, the Dollar Tree (DLTR) posted 2nd quarter profits were 15 percent higher than the same quarter 2007. As far as profits, they’re doing well only because everything else is getting more expensive, everyone is looking for a way to cut back.

As for now, the Dollar Tree is going to remain with the Everything’s $1.00 theme. We’ll just have to wait a while and see what happens in the future.