You know competition has to be tough when the nation's largest dollar store chain announces it is looking at dropping prices to compete for market share during the Christmas holiday season.
Dollar General, which just announced an increase in same store sales of four percent for the last quarter, said it would ramp up promotions (i.e., cut prices) on categories such as cereal and coffee to drive store traffic and grow its business.
"Although our performance over the Thanksgiving weekend and start of the holiday season has been encouraging, we continue to be cautious for the remainder of the year," said Rick Dreiling, chairman and chief executive officer of the chain, in a statement. "Dollar General is keenly focused on our ability to capture market share, build and maintain customer loyalty and deliver strong financial returns that support our sustainable growth for the long term."
Mr. Dreiling said Dollar General's customers continue to face economic pressures that aren't made any better by what they see taking place in the nation's capital.
"Every time you turn on the television, there's a bunch of guys in a suit who are frowning, telling you that the world is going over a fiscal cliff," Mr. Dreiling told Bloomberg News. "The customer is fatigued, they're tired, they're scared."