Fresh on the heels of July's Family Dollar acquisition, Dollar Tree continues to eat up Walmart market share—particularly from low-income customers. "It’s in many ways about understanding that customer [and] giving them what they need,” Dollar Tree CEO Bob Sasser says. With more than 13,800 stores in 48 states and five Canadian provinces post-acquisition, Dollar Tree now boasts $19B in annual sales and has quickly become one of the most popular stores in America. Its 19% of US consumers pales in comparison to Walmart’s 51.9%, but the sheer number of Dollar Tree stores, its various goods and, yes, its lower prices may make it the preferred chain for low-income consumers. And while Dollar Tree lost $98M last quarter, sales were up 48% to $3.01B, with Family Dollar chipping in with $811M. Walmart's, on the other hand, dipped to $3.48B, down from $4.09B a year prior. While Dollar Tree continues to focus on brick-and-mortar—which, while still the dominant force, may not rule for long—Walmart could hold the aces long-term with plans to upgrade mobile and same day pickup capabilities, Walmart says. [MW]
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