Latest news with #dollarstores
Globe and Mail
29-07-2025
- Business
- Globe and Mail
Dollar General vs. Dollar Tree: Which Discount Stock Wins the Value Game?
Key Points Dollar General struggled with macro headwinds over the past few years. Dollar Tree's divestment of Family Dollar could represent a fresh start. The pricier stock could actually be the better value. 10 stocks we like better than Dollar General › Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR), the two largest dollar stores in America, both survived the retail apocalypse which wiped out many other retailers over the past decade. They kept opening new stores even as other retailers pulled back, and they countered Amazon and Walmart by selling cheaper products. That resilience made them reliable recession-resistant investments. But over the past three years, Dollar General's stock plunged more than 50% as Dollar Tree's stock dropped over 30%. Let's see why these two stocks sank -- and if either one is a better value play right now. The differences between Dollar General and Dollar Tree Dollar General mainly opens its stores in rural areas which haven't been saturated by superstores. It doesn't actually sell everything for a dollar, but it tries to sell its products at much lower prices than its competitors. It generates most of its revenue in the U.S., but it expanded into Mexico with its Mi Súper Dollar General stores in 2022. From fiscal 2021 and fiscal 2024 (which ended Jan. 31, 2025), Dollar General's number of year-end stores increased from 18,130 to 20,594. For fiscal 2025, it plans to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico. Dollar Tree focuses on urban and suburban markets, and it tries to wedge its stores between lower income neighborhoods and superstores like Walmart. It originally sold all of its products for $1, but it raised its prices over the past four years to counter inflation and sell a broader range of products. It acquired its chief competitor Family Dollar in 2015, but it finally sold the struggling banner after a decade of sluggish sales this year. From fiscal 2021 to fiscal 2024 (which ended Feb. 1, 2025), Dollar Tree's number of year-end stores (including Family Dollar) grew from 15,115 to 16,774. But in fiscal 2025, its store count will decline as it divests its Family Dollar stores. At the end of the first quarter of 2025, its Dollar Tree segment operated 9,016 stores. What challenges do the dollar stores face? Dollar General and Dollar Tree both grew their same-store sales over the past three years. Data source: Company earnings reports. *Excluding Family Dollar. Dollar General's same-store sales slowed in fiscal 2023 as it grappled with inflationary headwinds for consumer spending (especially among lower income consumers), theft and inventory shrinkage issues, and cost-cutting measures, which caused operational challenges. But in fiscal 2024, its growth accelerated again as it closed some weaker stores, prioritized operational improvements over immediate cost-cutting strategies, and opened more Popshelf concept stores to sell a broader range of higher-margin, non-essential goods. For fiscal 2025, it expects its same-store sales to rise 1.5% to 2.5% as it continues to open more Popshelf stores, adds gas stations to more of its rural Dollar General stores, remodels its older locations, and continues to open new stores in more promising markets. It expects its diluted EPS, which plunged 32% in fiscal 2024, to rise 2% to 14% in fiscal 2025. Analysts expect its EPS to grow 12% for the year, even as the unpredictable tariffs squeeze its near-term margins. Dollar Tree's same-store sales growth decelerated in fiscal 2023 and 2024 as it grappled with inflation, weak consumer spending, bloated inventories, and theft. Its decision to broaden its price range alienated some of its customers, and its "combo strategy" of merging some of its Dollar Tree and Family Dollar banners didn't halt that slowdown. But for fiscal 2025, Dollar Tree sees its same-store sales rising 3% to 5%. It expects that acceleration to be driven by its ongoing conversion of its stores to its newer multi-price "3.0 format" (with $1.25-$7.00 tiers) to attract higher income customers. The divestment of Family Dollar should also free up more cash to strengthen its main banner. Dollar Tree expects adjusted EPS from continuing operations, which dipped 12% in fiscal 2024, to rise 1% to 11% in fiscal 2025. Analysts expect its adjusted EPS to grow 6%. Which dollar store stock is the better value right now? Dollar General trades at 20 times forward earnings and pays a forward dividend yield of 2.2%. Dollar Tree trades at 21 times forward earnings but doesn't pay a dividend. Dollar General might be the cheaper stock, but I think Dollar Tree's divestment of Family Dollar, its stronger same-store sales growth, and it's clearer plans for broadening its reach among higher-income consumers make it the more compelling investment. Dollar General's focus on rural areas limits its ability to attract more affluent customers, while its expansion of Popshelf could run into a lot of competition from similar retailers like Five Below. Should you invest $1,000 in Dollar General right now? Before you buy stock in Dollar General, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dollar General wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
29-07-2025
- Business
- Yahoo
Dollar General vs. Dollar Tree: Which Discount Stock Wins the Value Game?
Key Points Dollar General struggled with macro headwinds over the past few years. Dollar Tree's divestment of Family Dollar could represent a fresh start. The pricier stock could actually be the better value. 10 stocks we like better than Dollar General › Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR), the two largest dollar stores in America, both survived the retail apocalypse which wiped out many other retailers over the past decade. They kept opening new stores even as other retailers pulled back, and they countered Amazon and Walmart by selling cheaper products. That resilience made them reliable recession-resistant investments. But over the past three years, Dollar General's stock plunged more than 50% as Dollar Tree's stock dropped over 30%. Let's see why these two stocks sank -- and if either one is a better value play right now. The differences between Dollar General and Dollar Tree Dollar General mainly opens its stores in rural areas which haven't been saturated by superstores. It doesn't actually sell everything for a dollar, but it tries to sell its products at much lower prices than its competitors. It generates most of its revenue in the U.S., but it expanded into Mexico with its Mi Súper Dollar General stores in 2022. From fiscal 2021 and fiscal 2024 (which ended Jan. 31, 2025), Dollar General's number of year-end stores increased from 18,130 to 20,594. For fiscal 2025, it plans to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico. Dollar Tree focuses on urban and suburban markets, and it tries to wedge its stores between lower income neighborhoods and superstores like Walmart. It originally sold all of its products for $1, but it raised its prices over the past four years to counter inflation and sell a broader range of products. It acquired its chief competitor Family Dollar in 2015, but it finally sold the struggling banner after a decade of sluggish sales this year. From fiscal 2021 to fiscal 2024 (which ended Feb. 1, 2025), Dollar Tree's number of year-end stores (including Family Dollar) grew from 15,115 to 16,774. But in fiscal 2025, its store count will decline as it divests its Family Dollar stores. At the end of the first quarter of 2025, its Dollar Tree segment operated 9,016 stores. What challenges do the dollar stores face? Dollar General and Dollar Tree both grew their same-store sales over the past three years. Same-Store Sales Growth FY 2022 FY 2023 FY 2024 Dollar General 4.3% 0.2% 1.4% Dollar Tree* 9% 5.8% 2% Data source: Company earnings reports. *Excluding Family Dollar. Dollar General's same-store sales slowed in fiscal 2023 as it grappled with inflationary headwinds for consumer spending (especially among lower income consumers), theft and inventory shrinkage issues, and cost-cutting measures, which caused operational challenges. But in fiscal 2024, its growth accelerated again as it closed some weaker stores, prioritized operational improvements over immediate cost-cutting strategies, and opened more Popshelf concept stores to sell a broader range of higher-margin, non-essential goods. For fiscal 2025, it expects its same-store sales to rise 1.5% to 2.5% as it continues to open more Popshelf stores, adds gas stations to more of its rural Dollar General stores, remodels its older locations, and continues to open new stores in more promising markets. It expects its diluted EPS, which plunged 32% in fiscal 2024, to rise 2% to 14% in fiscal 2025. Analysts expect its EPS to grow 12% for the year, even as the unpredictable tariffs squeeze its near-term margins. Dollar Tree's same-store sales growth decelerated in fiscal 2023 and 2024 as it grappled with inflation, weak consumer spending, bloated inventories, and theft. Its decision to broaden its price range alienated some of its customers, and its "combo strategy" of merging some of its Dollar Tree and Family Dollar banners didn't halt that slowdown. But for fiscal 2025, Dollar Tree sees its same-store sales rising 3% to 5%. It expects that acceleration to be driven by its ongoing conversion of its stores to its newer multi-price "3.0 format" (with $1.25-$7.00 tiers) to attract higher income customers. The divestment of Family Dollar should also free up more cash to strengthen its main banner. Dollar Tree expects adjusted EPS from continuing operations, which dipped 12% in fiscal 2024, to rise 1% to 11% in fiscal 2025. Analysts expect its adjusted EPS to grow 6%. Which dollar store stock is the better value right now? Dollar General trades at 20 times forward earnings and pays a forward dividend yield of 2.2%. Dollar Tree trades at 21 times forward earnings but doesn't pay a dividend. Dollar General might be the cheaper stock, but I think Dollar Tree's divestment of Family Dollar, its stronger same-store sales growth, and it's clearer plans for broadening its reach among higher-income consumers make it the more compelling investment. Dollar General's focus on rural areas limits its ability to attract more affluent customers, while its expansion of Popshelf could run into a lot of competition from similar retailers like Five Below. Do the experts think Dollar General is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Dollar General make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Dollar General vs. Dollar Tree: Which Discount Stock Wins the Value Game? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
09-07-2025
- Business
- Globe and Mail
PesoRama Announces Closing of Equity Financing for Gross Proceeds of $6.8M
Toronto, Ontario--(Newsfile Corp. - July 9, 2025) - PesoRama Inc. (TSXV: PESO) (OTC Pink: PSSOF) (FSE: ZE6) (" PesoRama" or the " Company"), a Canadian company operating dollar stores in Mexico under the JOI DOLLAR PLUS brand, is pleased to announce the closing of the Company's equity offering, first announced on June 10, 2025 and subsequently on July 7, 2025, for gross proceeds of $6,802,674.90. Pursuant to the offering, the Company sold 45,351,166 units of the Company (each, a " Unit") at a price of $0.15 per Unit. "We are very pleased to close this financing, which marks a significant milestone in our growth strategy," said Rahim Bhaloo, CEO of PesoRama. "The financing was oversubscribed, reflecting strong investor interest and confidence in our strategy and vision. This capital will enable us to accelerate the rollout of new store locations across Mexico City and beyond, bringing affordable everyday products to more communities while driving long-term value for our shareholders." Each Unit is comprised of one common share of the Company (a " Common Share") and one Common Share purchase warrant of the Company (a " Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share (a " Warrant Share") at a price of $0.30 per Warrant Share for a period of 24 months from September 7, 2025, being the date that is 60 days following the closing date (such date of expiration, the " Warrant Expiry Date"). From today and until the Warrant Expiry Date, in the event that the daily volume-weighted average trading price of the Common Shares on a recognized Canadian stock exchange, which includes the TSX Venture Exchange (" TSXV"), is equal to or greater than $0.50 over a ten consecutive trading-day period, the Company may, at its option, within ten business days following such ten-day period, accelerate the Warrant Expiry Date by issuing a press release, (a " Warrant Acceleration Notice"), and, in such case, the Warrant Expiry Date shall be deemed to be the date that is thirty (30) days following the issuance of the Warrant Acceleration Notice. Of the total offering, 33,333,333 Units were issued pursuant to the listed issuer financing exemption (LIFE) under Part 5A of National Instrument 45-106 and 12,017,833 Units pursuant to private placements to accredited investors in Canada and the U.S. In connection with the offering, the Company paid a cash commission of $334,853.04 and issued 2,232,353 non-transferable finder warrants (each, a " Finder Warrant") to an arm's-length finder. Each Finder Warrant is exercisable into one Common Share at a price of $0.15 at any time on or before July 9, 2027. The Company intends to use the net proceeds raised from the offering for store expansion and working capital. The offering remains subject to final approval of the TSXV. This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the 1933 Act, or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available. MI 61-101 Disclosure The offering constituted a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (" MI 61-101"), as insiders of the Company and their related parties subscribed for a total of 2,166,667 Units. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by the insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the offering in an expeditious manner. About PesoRama Inc. PesoRama, operating under the JOI DOLLAR PLUS brand, is a Mexican value dollar store retailer. PesoRama launched operations in 2019 in Mexico City and the surrounding areas targeting high density, high traffic locations. PesoRama's 27 stores offer consistent merchandise offerings which include items in the following categories: household goods, pet supplies, seasonal products, party supplies, health and beauty, snack food items, confectionery and more. For more information, visit: For further information, please contact: Rahim Bhaloo Founder, CEO & Chairman rahim@ 416-816-3291 Cautionary Note This press release contains "forward-looking information" within the meaning of applicable securities laws, including, among other things, statements regarding the intended use of proceeds of the offering and the final approval of the closing of the offering by the TSXV. While the Company believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements, including due to changes in consumer behaviour, general economic factors, the ability of the Company to execute its strategies, the availability of capital and the risk factors which are discussed in greater detail in the "Risk Factors" section of the Company's prospectus dated January 31, 2022 and filed under the Company's profile on The statements in this press release are made as of the date of this release. PesoRama undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of PesoRama, its securities, or its financial or operating results (as applicable). Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
