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When Americans Can't Afford A Dollar

Tyler Durden's picture




 

Today's market moving news (or at least what should be market moving news) comes from hyper discounter extraordinaire, Family Dollar, whose stock is getting clobbered on what is merely the latest downward outlook revision (because as much as the Fed would like, reality, and cash flows, still do matter). Yet, while earnings not only for the $0.99 store but for the entire S&P will be atrocious something that apparently only selling copious amounts of VIX and buying up the ES in hopes of lifting all sinking boats can fix, it is the comments on the conference call that are most disturbing. To wit:

  • FAMILY DOLLAR QTR DISCRETIONARY SALES SLOWED MORE THAN EXPECTED
  • FAMILY DOLLAR SEES NEAR TERM CHALLENGES IN DISCRETIONARY ITEMS
  • FAMILY DOLLAR SEES 2Q GROSS MARGIN PRESSURE MORE VS 1Q
  • FAMILY DOLLAR SEES 1H13 MORE CHALLENGING THAN EXPECTED
  • FAMILY DOLLAR QTR AVG DISCRETIONARY INVENTORY PER STORE DOWN
  • FAMILY DOLLAR SAYS BUSINESS CLIMATE REMAINS UNCERTAIN

In any other universe, when Americans can't afford a dollar, literally, on purchases, this may be cause for alarm. But not in this one: here, courtesy of Bernanke's central planning, all shall be well. After all: instead of buying "stuff", America's 50 million food stamp recipients should just buy AAPL stock, and retire happily in a few short months if not weeks.

Worst case, they can always convert their stocks into fruity paraphernalia.

 

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Thu, 01/03/2013 - 13:04 | 3118974 GMadScientist
GMadScientist's picture

Ebonic hedonics?

Thu, 01/03/2013 - 13:11 | 3119007 laomei
laomei's picture

Dollar store products are basically never actually worth anything close to a dollar and are just about the worst possible way to shop.

Thu, 01/03/2013 - 13:11 | 3119016 Grin Bagel
Grin Bagel's picture

If you jaded jerks like to belittle people who are, for the vast majority forced into it, beggers......then please consider what the fuck is the relationship of lobbiest to congress person?

 

Belittle them, you self important jerks.

Thu, 01/03/2013 - 17:13 | 3120018 Dr. Sandi
Dr. Sandi's picture

I do. It doesn't help.

Thu, 01/03/2013 - 13:19 | 3119045 lamont cranston
lamont cranston's picture

Here in the Carolinas there's a Dollar General or Family Dollar (both nearby each other) about every 10 miles, not to mention Fred's (their grandaddy) plus WalMart. Market saturation. 

I'd like to see what same-store sales are YOY 2010-2011-2012 fro DG & FD. Howard Levine turned down a buyout for FD in 2011, I believe. 

Thu, 01/03/2013 - 13:23 | 3119061 Freewheelin Franklin
Freewheelin Franklin's picture

Technically, Family Dollar isn't a $0.99 store.

Thu, 01/03/2013 - 14:50 | 3119452 DadzMad
DadzMad's picture

I'm a bit off topic but I need to vent.  I've never been to a dollar store, I choose to support local businesses.  I live in a rural town of 12K people that started a revolt when Wal-Mart floated the idea of coming to town (which I supported), but drive down mainstreet on any given day and the Dollar Store parking lot will be filled with BMW and Lexus SUV's.  I just can't figure people out.  If they think Wal-Mart is so bad how can they buy the garbage on the shelves at a dollar store?  The DG store is in the same building as the local hardware store.  Back in October I passed a woman leaving the store with a bag of crap that she could have bought at the hardware store and maybe paid an extra two bucks for.  She was wearing a fucking Cartier watch and got into an 7 series as long as a school bus.  Does she realize or even care that the hardware store owner donated all the materials to light up the little league field where her kids play ball.  My point is your ROI is way more than the value of the shit in your bag.  I try and explain this to people and they look at me like I'm trying to tell them bigfoot is real.

Thu, 01/03/2013 - 16:01 | 3119782 RallyRoundTheFamily
RallyRoundTheFamily's picture

We have brought this plague upon ourselves, +1

I buy whatever I can at the local hardware store.

Thu, 01/03/2013 - 17:14 | 3120021 Dr. Sandi
Dr. Sandi's picture

I tried, but their produce leaves a lot to be desired.

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