Dollar General is opening 1,000 new stores next year

[IronLionZion]

https://www.cnn.com/2019/12/05/business/dollar-general-stores-stock-earnings/index.html

New York (CNN Business)Dollar General remains one of the fastest-growing retailers in America, attracting customers with rock-bottom prices on snacks and household goods. It's so confident in that strategy that it plans to open 1,000 new stores in 2020, just as it has for the past several years.

The company tightened its grip on shoppers during the most recent quarter, increasing sales at stores open for at least a year by 4.6% compared with the same period a year ago. It marked Dollar General (DG)'s fastest quarter of sales growth in five years.
Its profit increased, too, up 11% during the quarter and the company raised its outlook, driving its shares up 5% in early trading. Dollar General stock has rallied more than 50% over the last two years.

By opening 1,000 new stores next year, Dollar General's growth is nearly unrivaled in the industry at a time in which many brick-and-mortar retailers are closing stores or folding. Walmart (WMT), which swept into new towns for decades with massive superstores, has essentially stopped opening new ones. By contrast, Dollar General is entering new cities and towns with small stores and opening up in areas where it has already gained hold.

Dollar General currently has more than 16,000 stores in the United States and caters mainly to low-and-middle-income customers in rural and suburban areas, while its rival, Dollar Tree (DLTR), targets suburban, middle-income shoppers. Family Dollar focuses on lower-income urban and rural customers. Dollar Tree bought Family Dollar in 2015, but has struggled to absorb the chain into the company.

The one area of the retail sector that is thriving instead of dying. The article mentions places where Americans have been left out of the economic growth and are still living on lower wages. It also claims dollar stores are killing mom and pop shops and discourages new supermarkets from opening in neighborhoods.

[Midnight Writer]

1. Dollar General is where you go when you don't feel like dressing up for Walmart.

I live in a town of 14,000 and we have three Dollar General stores and two Family Dollars and one Dollar Tree.

[Jane Austin]

2. I like Dollar General because the stores are a manageable size.

I don't wear myself out like I do in big stores, and some of their stuff is really good.

Their lip balm was made in Canada and was just 50 cents a tube. I like their microfiber detail cloths, too.

Their seasonal gift bags are super cheap, and can be used over and over.

And if you want kids' party favors, it's the best place.

[customerserviceguy]

3. DG operates

in a lot of places that are not big enough to support a Wal-Mart. We have them in SC in a lot of small towns, and they seem to supply the needs of the residents there.

[llmart]

4. From what I see in my area...

the wealthy will have their Nordstrom's and Lord and Taylor and the rest of us will have Wally World and Dollar stores.

It's merely a reflection of our society.