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Retail chain consolidation could threaten consumer goods sellers

  • A number of consumer goods companies that sell widely to retail chains are under-performing market indexes today after Dollar Tree announced it will buy out Family Dollar.
  • Consolidation in the retail sector could give some leverage to the store chains as their scale broadens, according to Belus Capital Advisors' Brian Sozzi.
  • On watch: PepsiCo (PEP -0.7%), Coca-Cola (KO -0.7%), Kraft Foods (KRFT -0.1%), Procter & Gamble (PG -0.4%), Colgate-Palmolive (CL -0.3%), Energizer Holdings (ENR -0.8%), Kimberly-Clark (KMB -0.3%).
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Comments (6)
  • Willow Street Investments
    , contributor
    Comments (1251) | Send Message
     
    Complete made up non issue by Wall Street. These companies have dealt with Walmart for years...the ultimate bargainer. Just another made up story from Wall Street.
    28 Jul 2014, 03:37 PM Reply Like
  • ls1gto
    , contributor
    Comments (165) | Send Message
     
    I don't think dollar tree and family dollar stores sell much coca cola and P&G products anyway. If I remember correctly, most of the products they have on the shelves is cheap off brand junk.

     

    I bought some dish soap from dollar tree once... I think it was 99.9% water with a drop of soap.
    28 Jul 2014, 04:14 PM Reply Like
  • AZWhiteMt
    , contributor
    Comments (45) | Send Message
     
    We only have two discount stores here in the White Mt of AZ.
    Dollar Store
    Family Dollar

     

    The are good for some very selective products and KO or PEP are not one of them. Most items they have in stock seem to be overstock and nothing is what I call cheap or discounted-which one would think they be.

     

    Seldom, enter their doors.
    28 Jul 2014, 04:42 PM Reply Like
  • Hopeful17
    , contributor
    Comments (140) | Send Message
     
    Dollar Tree Stores in the NorthEast are just that. $1.00 per item--this includes Bottles of Cokes and Pepsi right out of a cold freezer. Not Bad compared to the competition that includes WalMart. I enjoy shopping at Dollar Tree. The only problem is the amount of one dollar items I end up buying. Take a twenty dollar bill with you when you enter the store. I do not shop at Dollar Store or Family Dollar. Dollar Tree is the better option by far.
    28 Jul 2014, 05:03 PM Reply Like
  • Warnin4U
    , contributor
    Comments (19) | Send Message
     
    The author obviously has no idea what he is talking about. Family Dollar and Dollar Tree are non entities with regard to the CPG giants. Neither of these retailers have ever been volume sources for any of the mentioned companies. Again, the author is obviously an idiot. It is doubtful that he even entered one of the stores he so "expertly" talks about. I don't think Dollar Tree handles any products from KO or PEP and Family Dollar only handles a limited selection.
    28 Jul 2014, 06:40 PM Reply Like
  • Hopeful17
    , contributor
    Comments (140) | Send Message
     
    All I can tell you is that Dollar Tree, at every Dollar Tree store I have entered, has a cooler with Cokes and Pepsis for sale at a price of $1.00 per bottle. Have you ever been inside a Dollar Tree Store? If the answer is yes, then I would suggest you open up your eyes.
    29 Jul 2014, 12:15 PM Reply Like
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