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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