Consumer
Dollar Stores Squeezed by Weak Spending, Tough Competition
- Dollar Tree shares tumble more than 25% after cutting outlook
- Industry is under ‘extreme pressure,’ Truist analysts write
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Dollar Tree Inc.’s shares plunged on Wednesday in a harbinger of the pain coming for companies that cater to consumers earning less than $35,000 a year.
Along with poor results from Dollar General Corp. and Five Below Inc. last week, the weaker-than-expected performance reveals a particularly troublesome moment for dollar stores as relentless cost-of-living increases erode the purchasing power of low-income shoppers.