Family Dollar Stores Inc., which posted a 23% rise in fiscal fourth-quarter profit Wednesday, said low-income shoppers are being joined by middle-class consumers in the discount chain's aisles.
A Family Dollar shopper in Charlotte, N.C. The chain plans to renovate at least 600 stores.
.The company said customers are still struggling financially and continue to seek bargains in apparel, pantry staples and other items. Family Dollar also said it plans to accelerate new-store growth and begin a store-renovation program.
"More middle-ish income consumers are starting to shop with us," Howard Levine, the company's chairman and chief executive, said during a conference call. "We think that we have a great opportunity here to try to get some stickiness to that customer."
Shares in Family Dollar rose 1.6% to $44.05 at 4 p.m. Wednesday in composite trading on the New York Stock Exchange. The company's stock is up 60% so far this year.