News – Market Update Q4 2018

News – Market Update Q4 2018

dollar general sign store front Dollar General

Dollar General is getting ready to open their 16th Distribution Center, in Longview TX and POs are on the way to staff it. Watch for your orders and new DC deductions.

Also, with the release of their 2019 Planogram Reset letter, we received notification of restructured fees for Remodels. New Store, Relocation & DGTP Remodel fees will be $27.50 per SKU (Traditional Plus – has expanded perishables/cooler doors and also some stores could have fresh produce). The Traditional store format Remodels will remain $21.00 per SKU.




With the recently imposed trade tariffs on Chinese goods, the discount stores look to be hit hard, struggling to maintain the low prices that consumers have come to expect. While each retailer is working through its own strategy, Walmart has stood up a special team focused on helping review cost increases related to tariffs. The recommended strategy is either to submit cost increases early, before they get to a breaking point, or work with your buyer to let them know that you’re holding costs but getting cost pressure and looking for internal ways to deal with it. Talk with your Walmart sales rep for help with the best strategy for your business.



Fred’s CEO Michael K. Bloom resigned in April, 2018 and Joseph Anto, the Company’s Executive Vice President, Chief Financial Officer and Secretary, was appointed to serve as Interim Chief Executive Office. From our view, it looks like Fred’s has stopped closing stores and are moving back to being a true “dollar store”.

In an effort to fend off bigger rivals such as Walmart and Family Dollar, Fred’s has opened two new “Fred’s Closeout Bonanza” stores in the Memphis area, dedicated to bargain shoppers and closeout treasure hunts.


Family Dollar In mid-September, Dollar Tree announced that, as part of its continuing integration of Family Dollar’s organization and support functions, they plan to consolidate their store support centers into a new office in the Summit Pointe development in Chesapeake, VA. Approximately 700 associates will be making the move from Matthews to Chesapeake in mid-summer 2019. As we learn more details about how this move will affect our clients’ business, we will be sharing. We do know that they are providing relocation assistance for those associates moving and outplacement support to those who are not. The Family Dollar Distribution Center, located in Matthews, NC, will remain open.