On Thursday, Dollar General Corp has been known to rein the full-year sales forecast for the company. It also announced that it still continues to be committed to purchasing Family Dollar Stores Inc, which is known to strengthen Dollar General Corp’s place as the top US discount retailer.
If the company will fail to make the merger agreement with the Family Dollar and Dollar Tree Inc, Dollar General will definitely lose its rank as the no. 1 US discount retailer, which is definitely an unfavorable scenario for the company.
Currently, Dollar stores are facing tight and increasing competition from small-format stores that were opened by online retailers, such as Amazon.com Inc, and big retailers, such as Wal-Mart Stores.
In September, Dollar General Corp took its $80-per-share bid for Family Dollar to shareholders. This month, the shareholders of Dollar General are scheduled to cast their vote on the $74.50-per share offer of Dollar Tree.
According to Rick Dreiling, who is the Chief Executive Officer and the Chairman of the company, they will give an update with regard to its Family Dollar’s offer ahead of the scheduled shareholder vote this coming 23rd of December 2014. Will Dollar General be successful in its offer? That is yet to find out.