Listening
Unlocking Word Meanings
Read the following words/expressions found in today’s article.
- fold (something) into (something) / foʊld ˈɪn tu / (phrasal v.) – to add or include something as part of a larger thing
Example:The company folds its online services into the main platform to create a smoother customer experience.
- outsized / ˈaʊtˌsaɪzd / (adj.) – very big in size or amount, usually more than usual
Example:The small startup gained outsized attention after its new app became popular worldwide.
- breadth / brɛdθ / (n.) – the wide range of things that something includes
Example:The breadth of topics discussed in the history class made it difficult to remember everything for the exam.
- assortment / əˈsɔrt mənt / (n.) – a variety of different things, often grouped together
Example:The store has an assortment of fruit, like apples, bananas, and oranges.
- optimize / ˈɒp təˌmaɪz / (v.) – to make something as good or effective as possible
Example:The company is optimizing its website to make it easier for customers to use.
Article
Read the text below.
Dollar Tree’s decade-long effort to fold the Family Dollar chain into its business is ending after agreeing to sell the bargain store chain to a pair of private equity firms for $1 billion.
Dollar Tree Inc. bought Family Dollar with its over 7,000 stores ten years ago for more than $8 billion.
Neil Saunders, managing director of GlobalData, said that Dollar Tree struggled with supply chain issues, poor store locations and other operational difficulties ever since making the acquisition.
Family Dollar carries a range of household staples, from food to laundry detergent. The stores are largely located in underserved, urban areas. Store closings that are underway, and those that may take place under new ownership, are likely to have an outsized impact on customers living in those areas.
Access to affordable, essential goods may become more challenging for lower-income families as more Family Dollar stores close, said Marshal Cohen, chief industry advisor at Circana, a market research firm.
“The lower-income consumer will be losing a critical place to be able to purchase value products,” Cohen said. “They’re losing the breadth of the assortment and the depth of the discount and the convenience.”
The mom-and-pop stores found in such densely populated urban areas have less selection and prices are typically higher, Cohen said.
Dollar Tree stores, whose customer base is about 50% middle-income shoppers, are found in many suburban locations. Its shelves are more likely to feature seasonal goods, party supplies, crafts and snacks.
The sale will likely free Dollar Tree to focus on its core customers, Truist Securities analyst Scot Ciccarelli believes.
“Family Dollar turnaround efforts had been consuming massive amounts of both management focus and financial resources and now the company can focus all of its efforts toward growing and optimizing Dollar Tree,” he wrote in a client note.
Bargain chains like Dollar Tree, which have raised some of their prices in recent years, are finding that they have little room to maneuver. Americans have tightened their spending as consumer confidence in the economy slides.
This article was provided by The Associated Press.
Viewpoint Discussion
Enjoy a discussion with your tutor.
Discussion A
- Many bargain stores, like Dollar Tree, have raised prices due to financial challenges. Do you think discount stores will survive in the future? Why or why not? Are bargain stores popular in your country? Discuss.
- Do you like shopping at bargain or discount stores? Why or why not? Can you think of a time when buying a cheaper product was a good or bad choice? Discuss.
Discussion B
- Many people rely on discount stores for essential goods, especially in lower-income areas. How does closing affordable stores affect a neighborhood? In your opinion, is it easier to shop in the city or the suburbs? Why? Discuss.
- Family Dollar stores were convenient for many, but closing them may force people to shop farther away. Do you think it’s easy to find affordable products where you live? Why do you say so? What products do you think should always be cheap and easy to find? Discuss.
