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Family Dollar

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Submitted By ejsksms91
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Family dollar and General Dollar M&A external analysis Dollar General is one of the largest discount retailers in the United States. Direct competition in the discount retailer industry is mainly with companies like Family Dollar Stores, Inc. and Dollar Tree Stores, Inc., Since the majority of retail stores merged and reached an agreement with Family Dollar Stores and Dollar Tree, Dollar General offered $9 billion to get Family Dollar.
Many external circumstances influenced General Dollar to make their decision. First, the demographic segment for low, middle, and fixed income families illustrates the U.S. population shifting from the north and east to the west and south. Economic segment show a global financial-crisis influences economic downturn, rising unemployment rates as well as affecting the “five-and-dime” retailing concept and “Hour-Glass Economy” men. The political/ legal segment talks about the growing trade deficit with China. This may affect production of items, for example items that could trickle down to Dollar General and other High-Value Retailers. The socio-cultural segment describes emerging bargain, which is based on the mentality of the emerging American consumer, while the technological segment describes general movement to debit/credit cards and away from cash. Introduction of card readers make shopping convenient for government assistance as well as benefit transfer consumer. Finally, the global segment shows an example of Europe: 5 out of 10 largest retailers in Europe operate with the discount format and 1 out of every 4 stores operate discount format in EU. It shows extreme-value discounting more acceptable practice globally as opposed to the U.S. physical environment segment describes increased trends on sustainability and the green movement…...

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