Family Dollar Stores, Inc. (FDO): Product Mix is Holding This Retailer Back

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Conclusion

Family Dollar Stores, Inc. (NYSE:FDO) is investing in new stores growth and remodeling the existing ones to increase selling space this year. It has taken initiatives for margin growth this year with increased supply chain partnerships for direct sourcing. It will add 400 new private label SKUs with relatively high margin product categories. However, high mix of consumables is expected to be a headwind for the company’s gross margins and hence I remain neutral of the stock.

Ash Sharma has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Product Mix is Holding This Retailer Back originally appeared on Fool.com.

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