Many U.S. discount stores struggling, see drop in sales

(CNN)– Many U.S. discount stores are losing money hand over fist.

That includes “Dollar Tree”, which saw its shares collapse 20% on Wednesday.

This slump followed the company’s announcement last week that it dramatically cut its full-year forecast.

Dollar Tree owns “Family Dollar”, which is also having trouble with its bottom line.

Another discount store in the dumps is “Dollar General”.

Officials there say a weaker job market and inflation are causing some low-income customers to stay away.

Dollar stores add that retailers like Target and Walmart are sometimes meeting them at their own game by lowering prices on key products.