Amid increases in average transaction amount and shopper traffic, Dollar General Corp. reported that same-store sales rose 21.7 percent for fiscal year 2020 Q1 compared to Q1 2019. The company reported a rise in same-store sales in consumables, home products, seasonal and clothing categories, noting the biggest percentage increase in home products, according to an announcement.
“The Company believes consumer behavior driven by COVID-19 had a significant positive effect on net sales and same-store sales,” it noted in the earnings announcement.
Dollar General said it is putting social distancing procedures into place at its stores as well as distribution center common areas, setting aside a senior hour daily for community members to shop, put into place the installation of plexiglass barriers at checkout registers and decreasing store operating hours to enable more time to clean as well as re-stock shelves.
Dollar General reported net sales of $8.4 billion and diluted earnings per share of $2.56 for the first quarter of 2020.
The news comes as Dollar Tree Inc. reported a 15.5 percent rise in same-store sales along with a 230 basis point improvement in operating margin for Family Dollar, according to an announcement. Dollar Tree same-store sales, in the other hand, fell by 90 basis points, as the company noted that lower Easter sales had a material effect on the discretionary and seasonal business.
Dollar Tree Inc. said it is “committed to keeping each of its more than 15,300 Dollar Tree and Family Dollar stores open to serve the critical product needs of customers in a convenient store format at prices they can afford.”
As part of that goal, the retail company said it is promoting proper social distancing procedures, accommodating contactless payments at checkout, putting into place plexiglass shields at cash registers and setting aside the first operational hour at stores each day to at-risk customers.
Dollar Tree Inc. reported net sales of $6.29 billion and diluted earnings per share of $1.04 for the first quarter of fiscal 2020.