Stores Faring Well In Bad Economy
Despite the recession, some store chains are reporting a better second quarter compared to last year’s second quarter for different reasons.
Dollar General has been doing very well so far this year with an increase in sales by over 8 percent in the second quarter and over 11% for the year. There are plenty of useful items you can get cheaper there and it seems people are spending more time at discount stores to save money.
Toys R Us has also announced an increase in profit, even with a loss of total sales compared to last year, just by streamlining margins and cost control. They have been able to turn a profit while the economy is down, showing they can handle the downturn. Increasing sales doesn’t always increase profit, sometimes you can increase profit just by lowering expenses and cutting costs.
It will be interesting to see if this trend continues when the economy gets better or if people will fall back into the bad habits of overspending and not saving for a rainy day. I’ve always tried to get sales or the lesser price anywhere I could to save money. Why pay more for the exact same thing somewhere else?
Have you started shopping at discount stores to save money?
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