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We visited Family Dollar, the store that analysts say is becoming Dollar Tree's biggest problem. Here's what we found.

Business Insider/Mary Hanbury

  • Family Dollar was acquired by Dollar Tree in 2015.
  • Analysts say Family Dollar has proven to be a drag on Dollar Tree’s earnings.
  • “Family Dollar remains the weaker part of the business,” Neil Saunders, managing director at GlobalData Retail, said in May. “A far higher proportion of its shopper base goes there out of necessity rather than because they particularly want to.”
  • We visited one of its stores to find out what it is like to shop there.

It’s been three years since Dollar Tree bought Family Dollar, and so far, it’s been a disappointing run.

The discount chain, which has more than 8,000 stores in the United States, has pulled down its parent company’s earnings. In its most recent quarterly results, same-store sales at Dollar Tree were up by a modest 1.4%, but breaking this number down, it becomes clear that there is a weak link in the mix. While Dollar Tree same-store sales were up by 4% in the quarter, Family Dollar sales dropped by 1.1%.

“Family Dollar remains the weaker part of the business,” Neil Saunders, managing director at GlobalData Retail, said in a note to investors in May.

“It is more of a needs-based experience which caters for customers’ basic, everyday requirements. A far higher proportion of its shopper base goes there out of necessity rather than because they particularly want to.”

Dollar Tree acquired Family Dollar in 2015, after undergoing a bidding war with Dollar General, its main US rival. Dollar Tree and Dollar Tree are almost neck-and-neck in terms of store count and annual sales. Both dollar chains have about 14,000 to 15,000 locations. Dollar Tree generated $22 billion in sales in 2017 compared with $23.5 billion at Dollar General.

The bidding war may have distracted Dollar Tree and led them to “gloss over some of the glaring problems at [Family Dollar],” Credit Suisse analysts wrote in June.

“Family Dollar clearly preferred Dollar Tree as the acquirer (since the Family Dollar name was more likely to survive), and Dollar Tree likely wanted to prevent Dollar General from nearly doubling its size overnight,” the analysts wrote.

We decided to check out what it was like to shop at Family Dollar:


The Family Dollar store we visited was located in Brooklyn, New York. On average, its stores are around 7,000 square feet in size.

Business Insider/Mary Hanbury


At the entrance of the store was a selection of seasonal products. This tactic is also used by its sister store, Dollar Tree, to grab the attention of the shopper and make sure items with a shorter shelf life don’t go unnoticed.

Business Insider/Mary Hanbury


The layout of the store and assortment felt a lot more similar to a Dollar General store than a Dollar Tree.

Business Insider/Mary Hanbury

In fact, Credit Suisse analysts say it would likely have made more sense for Dollar General to acquire Family Dollar. The offering is more in line, and there is a limited overlap in terms of where stores are located.

Family Dollar stores are generally found in urban areas while Dollar General stores are typically located in rural places.


The majority of its products cost more than $1 …

Business Insider/Mary Hanbury


… and there is a much wider selection of well-known brands.

Business Insider/Mary Hanbury

Dollar Tree, on the other hand, stays true to the dollar-store model, offering all items for $1. It offers a larger number of lesser-known brands, which enables it to keep prices low.


Similarly to Dollar General, Family Dollar is designed to cater to everyday and basic requirements.

Business Insider/Mary Hanbury


There was a limited selection of fresh food that included milk, eggs, and cheese — but no fruit or vegetables.

Business Insider/Mary Hanbury


“Family Dollar stores stock a higher mix of consumables, and satisfy fill-in trips between visits to a mass merchant,” Credit Suisse analysts wrote in June.

Business Insider/Mary Hanbury


There definitely wasn’t enough here to do your weekly grocery shopping, but it could be enough to grab some essentials midweek.

Business Insider/Mary Hanbury


However, it was a confusing mix between doing a quick shop and a monthly stock-up. In some areas of the store, it felt more like a warehouse club.

Business Insider/Mary Hanbury


Items were being sold in bulk, clearly as a way to keep prices down. However, buying in bulk doesn’t lend itself to frequent visits.

Business Insider/Mary Hanbury


It also made the store feel more expensive, as even though you are likely getting a better deal if you buy in bulk, you are in two different mindsets when shopping — is this a dollar store or a warehouse club?

Business Insider/Mary Hanbury


We were impressed with the wide selection of items overall. In this relatively small space, they also had kitchen and bathroom supplies as well as some underwear.

Business Insider/Mary Hanbury


This did mean that some areas were fairly disorganized, however.

Business Insider/Mary Hanbury

According to Credit Suisse analysts, the store’s shopping experience is one of the main reasons why Family Dollar has struggled to appeal to customers. They argued that store renovations could be the ticket to success.

“The store base was in complete disarray three years ago. Incremental remodel activity will go a long way toward stabilizing the same-store sales,” the analysts wrote.

Family Dollar is expected to remodel 450 stores this year.

Our verdict: The store was definitely easy to shop and in better condition than what we encountered at one of its sister Dollar Tree locations when we visited earlier this year. However, the mix of bulk and normally sized items made the pricing feel confusing and, ultimately, expensive.


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EQS-News: Goldpac Announces 2018 Interim Results * The Total Comprehensive Income for the Period Rises 7.1% to RMB86.56 Million Sustainable and Steady Dividend Payout, Interim Dividend of HK4.

EQS-News / 19/08/2018 / 22:26 UTC+8

Goldpac Announces 2018 Interim Results
* * * * * *
The Total Comprehensive Income for the Period Rises 7.1% to RMB86.56 Million
Sustainable and Steady Dividend Payout, Interim Dividend of HK4.0 cents Declared,
Dividend Payout Ratio Reaches 33%

17 August 2018, Goldpac Group Limited (“Goldpac” or the “Group”, stock code: 03315.HK) announced its interim results for the six months ended 30 June 2018 (the “Period”). The Group’s total comprehensive income for the Period amounted to approximately RMB86.56 million, representing an increase of approximately 7.1% year-on-year. The interim dividend of HK4.0 cents was declared.

In the first half of 2018, standard payment card prices decreased as a result of market competition. However, through diversified chip supplies, the increased market promotion of fashion products and platform and services, the Group maintained its steady profitability. The Group’s turnover amounted to approximately RMB633 million, representing a year-on-year decrease of approximately 8.4%. The operating profit rate reached approximately 17.5%, continuing to remain the leading position within the industry. R&D costs continued to increase while the other operating expenses were well managed and decreased. USD appreciation provided a positive impact on the Group’s forex gains. The total comprehensive income for the Period was approximately RMB86.56 million, representing an increase of approximately 7.1% year-on-year.

In the first half of 2018, China’s economic growth and the continuous increase in payment card usage scenarios have effectively driven the market demand for payment card products. The Group has further strengthened its leading position in China’s smart payment products market. With the trust and support of a customer base of more than 1,000 banks across the globe, the Group’s shipment volumes for payment cards maintained its continuous growth. Furthermore, shipment volumes for UnionPay IC cards set a new record subsequent to the 2015 China IC card migration.

The individualized consumption is promoting the upgrade of payment card products. The fast growth of individualized and fashion payment cards are likely to provide the Group with the wider development space. During the Period, depending on the important differentiating factor and competitive advantage in cutting-edge fashion design and technological innovation, the Group is constantly improving its offers for individualized and fashion products. Most of individualized products, such as IP credit cards and AR credit cards, were welcomed by the market, and effectively increased the overall product value-added level and alleviated part of the price pressure. The favorable results of the product upgrades are beginning to surface.

The Group is highly committed to its self-driven Research and Development (“R&D”). R&D costs steadily increased over the past five years. The CAGR of R&D costs in the past five years amounted to approximately 30.7%. The Group had been a promoter for the commercial application of China chip under the guidance of China chip strategic plan. In the first half of 2018, the Group launched the world’s first EMV product based on China chip and opened up opportunities for its penetration of international markets. At the same time, the Group has also carried out R&D in forward-looking technologies, including applications of block chain techniques, Internet of Things, security algorithms and smart banks. R&D costs for the Period continued to grow to approximately RMB51.8 million, representing an increase of approximately 5.2% year-on-year.
Based on the Group’s steady profitability and healthy financial condition, the Group keeps strong capital strength. The total cash available of the Group has continued to increase to nearly RMB1.4 billion and the net assets amounted to nearly RMB2.0 billion.
Looking ahead, the Group will focus on the following three directions in its second Five-Year Development Plan after its IPO. Accelerate the “Platform” strategy
The individualized consumption inspired by the Internet culture is promoting the upgrades of payment card products. Cardholders and issuers of payment cards are increasingly focused on a wider range of areas other than the payment function. Meanwhile, with the rapid development of consumer credit in China, credit card, as one of the most advantageous products, is also increasing its contribution in the retail income of banks. The objectives of attracting customers through payment cards are becoming more and more important. The Group will follow the trend of the market development, accelerate the “Platform” strategy, and strive to make our “Platform” bring together banking solutions on one hand, and card holders’ preferences on the other, thus gaining the leading advantage in the process of payment card products upgrades.
Overseas markets
The Group has further enhanced its organizational structure in the international market to attract outstanding talents from the world’s top corporations. In the expansion of its overseas market, the Group will fully implement the “Solutions” and “Platforms” strategies with the objective to break through geographical restrictions and achieve the goal of rapid development. Simultaneously, the Group will further promote China chip in overseas markets.
AI Self-service Financial Kiosks and solutions
Demand for AI Self-service Financial Kiosks is growing rapidly around the world. The Group will continue to increase its investment in these areas and fully utilize Biometrics, facial recognition and natural language processing technology with a simple, integrated and scenario-based approach. In the meantime, the Group will also accelerate the capital investment and strategic opening cooperation in this field.

Document: http://n.eqs.com/c/fncls.ssp?u=UCJLOUXVDNDocument title: Goldpac Announces 2018 Interim Results * The Total Comprehensive Income for the Period Rises 7.1% to RMB86.56 Million Sustainable and Steady Dividend Payout, Interim Dividend of HK4.0 cents Declared, Dividend Payout Ratio Reaches 33%
19/08/2018 Dissemination of a Financial Press Release, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.com

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Now through August 28, 2018 at 3:00am PDT, receive automatic free shipping on all orders with the purchase of one (1) or more Aerie® bras or one (1) or more AEO® or Aerie swim item, and free returns on Aerie bras and AEO or Aerie swim item. We will include a free return label in your shipped package. Offer not valid on AEO or Aerie Clearance merchandise. Offer is valid on orders shipping to U.S. & Canadian addresses only. Offer not valid on international orders. This offer is good for U.S. standard shipping within 3 to 7 business days pending credit approval and authorization. Orders to Canadian addresses will be shipped via Canada post within 6 to 10 business days to urban areas and 15 to 22 business days to rural areas. Shopping bag must contain at least one (1) Aerie bra and/or one (1) AEO or Aerie® Swimwear to qualify for free shipping. This free shipping offer can be combined with other discount offers. No discount code is required at the aerie.com shopping bag. Not applicable toward previously purchased merchandise. All deliveries are pending credit approval and merchandise availability. Deliveries may be delayed due to carrier issues or weather conditions. Free shipping promotion and associated terms & conditions subject to change at AEO’s sole discretion.

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Beginning August 18, 2018 at 6:00am EDT through August 21, 2018 at 3:00am PDT, receive 25-60% off Aerie® collection items in select Aerie U.S. and Canada stores and online at aerie.com only. Prices as marked. All prices and/or promotions at ae.com® and aerie.com are reflected in USD. Discount applies to Aerie merchandise costs only, prior to tax and shipping & handling. No discount code is required at the aerie.com shopping bag. This discount is not redeemable for cash, nor applicable toward previously purchased merchandise. Valid for Aerie branded merchandise only. Not valid on undies, AEO® merchandise or on Gift Cards. Excludes 3rd party merchandise. Discount promotion and associated terms and conditions subject to change at AEO’s sole discretion.
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