Dollar Stores Face Major Challenges as Walmart and Target Gain Ground

Dollar General and Dollar Tree struggle with declining sales and lowered forecasts amid fierce competition and economic pressures.

Dollar Tree's stock fell 22% after reporting disappointing Q2 earnings and lowering its full-year outlook.
Dollar General also cut its annual forecast, with shares experiencing their worst day on record last week.
Walmart and Target's aggressive pricing strategies are attracting budget-conscious shoppers, impacting dollar store traffic.
Deutsche Bank analysts lowered price targets for Dollar General and Dollar Tree but believe the stocks could stabilize at recent lows.
Both discount retailers face increased pressure from inflation and changing consumer spending habits.