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Dollar Store Report Card: DG, DLTR, FDO

DLTR still rules supreme among dollar stores, but the sector as a whole is weak

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For years, I’ve been proclaiming Dollar Tree (DLTR) the top dog among the three major dollar store stocks, handily trouncing rivals Dollar General (DG) and Family Dollar Stores (FDO) in relative strength.

dollar store stocks DLTR DG FDODollar Tree stores are well organized, with wide aisles and neatly stacked display items. The staff is usually friendly, and the stores are well lit. By contrast, from my experience, a walk through Dollar General or Family Dollar is a bit more treacherous. The aisles are narrow, and there’s a better than even chance you could trip over some boxes that are blocking an aisle, or dance around some cluttered items that have fallen on the floors. Additionally, the staff often seems to be indifferent to the customer in these stores.

But what has set DLTR apart from the competition all of these years is that it is the only true dollar store (i.e.m everything in the store is only a buck). The same dollar item in Dollar Tree might cost you $3.99 in Dollar General or Family Dollar.

But what makes a good business doesn’t necessarily make a good stock. So before you and I pass final judgment on DLTR, DG and FDO, let’s take a look at the fundamentals and relative strength of all three.

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