Dollar stores got aggressive as the rest of retail hunkered down, and Wall Street likes the strategy

Key Points
  • Analysts say Dollar General and Dollar Tree have room to run in 2021, despite their strong sales gains and stock performances during the coronavirus pandemic.
  • Dollar stores, especially those that sell food, "tend to do well during times of economic uncertainty," said Michael Lasser, a retail analyst for UBS.
  • Dollar General is expanding a new store concept and pressing ahead with aggressive expansion plans for its primary banner.
  • Dollar Tree is adding higher-priced merchandise to many of its stores and could pick up sales as consumers can resume social gatherings and parties.

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