malach hamovess

The Upside Case for Family Dollar Stores

closeout operations like FDS require a constant supply of overstock merchandise which can then be turned quickly.

Last year, when the retail economy suddenly collapsed, FDS and its counterparts in soft goods - Ross Stores, TJX, were able to capitalize on the mass of surplus goods and move a lot of merchandise at bargain prices.

As retailers and suppliers acclimate to the new, low-spend economy, they're not as likely to get stuck with the mass of seasonal goods which must then be unloaded to discounters and close-out kings.

How this will affect FDS in not certain, but it probably won't help.