Weak Economy (Does Not) Sap Dollar Stores’ Strength
Family Dollar is up 18% since Cramer last spoke to CEO Howard Levine on April 13. And it’s up 60% since his recommendation on Nov. 6, 2009. Apparently, The Wall Street Journal’s recent headline, “Weak Economy Saps Dollar Stores’ Strength” was a bit off. To say nothing of the fact that these discount retailers tend to do better in a down economy, not worse.
Cramer’s bullish on the stock because Family Dollar is capturing middle-class shoppers who traded down to private-label products during the Great Recession and have stayed down since. Plus, the company’s move to accept food stamps has exposed it to “the biggest consumer growth story out there,” he said. However sad that may be.
And FDO is improving its stores to better compete, too. Cramer was so enticed by the updates, he decided to visit CEO Levine at one of his Brooklyn locations. Watch the video for the full interview.
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