Thursday, March 20, 2014

Is Wal-Mart Taking Aim at the Dollar Stores?

If you had a dollar for every time an analyst speculated over what would happen if Wal-Mart   decided to target a certain market, then you would have enough money to buy a Family Dollar store outright instead of fretting over encroaching competition. The dollar stores do look like they could see Wal-Mart muscling in, so investors looking for another way to play the value segment of retail might consider Ross Stores or TJX Companies  instead.

Wal-Mart targets the dollar stores, or does it?
By now, most investors will be aware of Wal-Mart's recent announcement in which the company states that it intends to double its planned small-store expansion to 270-300 stores, from an initial target of 120-150. Essentially, this is seen as Wal-Mart taking direct aim at the dollar stores, especially given Wal-Mart's undoubted purchasing power and reach.