Family Dollar Closures

Family Dollar recently announced the closing of 370 stores and reducing the growth pattern.  Is this the first real sign that the retail market is rebounding?  Much of the growth inside the discount retailer market was the expansion of the customer base.  Prior to the economic downturn the majority of the dollar store customer was the low income/ paycheck to paycheck consumer.  As the downturn started to rear its head the customer based expanded to middle class and even some thrifty of the lower end of the upper class consumer.  If discount store sales continue to trend downward the logical thought is that the shift back the other way is starting to occur and consumers are returning to their old habits and stores.  If so many of the dollar stores might find they have over saturated the market and have surplus stores.  I think many in the rural areas will be fine as the customer may find it more convenient than traveling into "town" to a larger store.  Where the trouble will surface is the suburban market areas and the urban areas.  This will be an interesting trend to follow and may be one of the better indicators of the health and growth of the retail sales.  More can be found on the Family Dollar Closures  here.