Wal-Mart lower after dollar store consolidation


Shares of Wal-Mart (NYSE:WMT) are slightly skittish in early trading as the merger between Dollar Tree and Family Dollar rips a potential option out the company's playbook.

The Dollar Tree-Family Dollar combination creates a retail force with more stores than Wal-Mart (significantly less square footage) with increased leverage with suppliers.

WMT -0.6% premarket

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Comments (1)
  • mister-ugly
    , contributor
    Comments (316) | Send Message
     
    logistics & transparency pushed this deal. Strong Management @ Dollar Tree in fact by operating as separate entities within one retail umbrella becomes even more competition for retail world. Using logistics force Family Dollar to carry more profitable items wringing more profit per square foot. I am suggesting higher average sku's then Dollar Tree is able to retail.
    28 Jul 2014, 09:28 AM Reply Like
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