According to Metro Spotlight, Family Dollar is one of the fastest growing discount stores in the country. In this June, 2005 article the company plans to create 465 jobs at a new regional distribution facility in Rome, New York. During the past decade Family Dollar has increased its stores by three thousand, of those two thousand were during the last five years. When Family Dollar chose Rome, New York they saved around a million dollars with local and state incentives. From the facts of this article I would say this company is doing very well.
The September 21st, 2005 issue of The Wall Street Journal says “The red-hot growth of dollar stores is cooling.” Many investors have started to think the age of discount stores has reached its climax. Predictions for future stock prices have been lower slightly from there original expectations. Also it is expected that the expansion of stores is expected to decrease in the near future due to the increase of gas prices and unemployment.
In June 13th Edition of Home Textiles Today it states that Family Dollar plans on open around 500 more stores this year and focusing on its urban markets. Reports state that two-third of Family Dollars spending takes place in the biggest urban areas. Family Dollar is experimenting with merchandising their store based on the region. Stores in the urban area are thriving according to this report.
Family Dollar is that the company is growing and has a great customer base in its urban centers. It has such a great customer base because of the company’s policy of adjusting the stores to the regions needs. Rural stores are not as strong as the rest of the stores this has a lot to do with lower customer base, less income, and unemployment. High gas prices have squashed a lot of sales especially in the rural centers. One opportunity I see the company taking is starting to expand its merchandise to groceries. Having more products that customers will need is a very good way to...