Dollar General says it still wants to acquire rival Family Dollar

Fortune

Dollar General, the leading U.S. deep discount retailer, said Thursday it remains committed to acquiring rival Family Dollar, and reported a 2% increase in fiscal second-quarter profit.

The discount chain increased markdowns in a move to get cautious customers to open up their wallets in the quarter.

“Our second quarter same-store sales began very strong with a year over year increase in May of more than 3.5%,” said Dollar General Chief Executive Rick Dreiling. “However, this growth moderated as we moved through June and July given the competitive environment and a consumer who, although resilient in the face of economic uncertainty, remains cautious.”

Dollar General’s gross profit slipped to 30.8% from 31.3% a year ago, hurt by the increased promotional efforts.

The results are the first from Dollar General [fortune-stock symbol=”DG”] since it offered to pay $9.7 billion to acquire rival Family Dollar [fortune-stock symbol=”FDO”] — a bid that is…

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