Dollar Tree cuts annual forecasts on weaker demand

NEW YORK, Sept 04 (Reuters): Discount store operator Dollar Tree cut annual forecasts on Wednesday, as it struggled to lure in price-sensitive shoppers for its more profitable higher-margin goods amid sticky inflation, sending shares down about 9 per cent in premarket trading.

Peer Dollar General also cut its annual forecasts after its quarterly sales came below expectations, signaling strained spending from lower-income customers as well as value-seeking behavior from middle and higher-income households.

Dollar stores have struggled to attract shoppers as bigger rivals such as Walmart, Target and PDD Holding's ecommerce platform Temu compete for customers.