Wal-Mart Is Losing The Low-Price Wars To Dollar Stores

Family Dollar and Dollar General are now cheaper than Wal-Mart, according to Sterne Agee analysts.

Family Dollar shoppers paid 2.7% less on purchases than Wal-Mart shoppers in January, the analysts found. Dollar General shoppers paid .2% less.

“Wal-Mart has conceded the ‘price leader’ crown to Family Dollar,” analyst Charles Grom wrote in a research note.

That’s a reversal from May 2013, when “Wal-Mart was the clear pricing leader” with savings of nearly a nickel per dollar spent at the other discount retailers, he wrote.

“In the four subsequent price checks since that time, [Wal-Mart] has continued to lose ground,” Grom wrote.

Grom and a team of shoppers compared the prices of 42 identical items at the three retailers for the report. This is the fifth time that the team has conducted the pricing research since May of 2013.

In January, the cost of the baskets totaled $US149.51 at Wal-Mart, $US149.15 at Dollar General and $US145.59 at Family Dollar.

The cost of the baskets has dropped by $US9.37 and $US4 at Family Dollar and Dollar General, respectively, since May 2013. By comparison, the cost of the baskets has increased $US2.36 at Wal-Mart.

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