Dollar General Corporation (DG) is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 2016, Dollar General operated over 12,400 stores in 43 U.S. states. The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. in 1983, and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other. Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word "dollar" in the name, Dollar General is not a dollar store by the strict definition of that term as most of its products are priced at more than $1.00. However, goods are usually sold at set price points in the range of .50 to 60 dollars, excluding articles such as phone cards and loadable store gift cards. Dollar General often serves communities that are too small for Walmart stores (although many locations are in relatively close driving distance to a Walmart store or in the same communities that Walmart is located). It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred's in the Southeast, and numerous independently owned stores. Since 2000, Dollar General has experimented with stores that carry a greater selection of grocery items. These stores, (similar to the Walmart Supercenter, but much smaller), operate under the name "Dollar General Market".
Reported before open today (5/26/16) Earnings: EPS $1.03 Revenue $5.265B Estimates: EPS $0.94 Revenue $5.281B Up 5.17% today so far
I wonder if there is anyone who HASN'T said these words "I really dont feel like dealing with Walmart today" Me and the wife both said this every week until they built a new Dollar General in our neighborhood... Now we dont have to, and its wonderful! So wonderful that it got me thinking... While Amazon has all these other retailers backed against a wall, heres one that could have the answer..... Convenience So i started reading up on it... turns out DG is opening 900 new stores this year while WMT is closing 150 supercenters...... they say the bigger they are, the harder they fall... could we be witnessing the fall of WMT???... and could a store like DG be quietly positioning itself to pick up the pieces? While i cant see WMT ever going away, i can see them shrinking down to a last resort... with over crowded, under stocked stores that everyone dreads and only steps foot in if they have to...... it already is for me! I could go on a long rant and list 100 reasons i hate WMT... but this isnt the WMT thread, so ill get to the point I like DG, but not as a trade... think i wanna put a ring on it, to have and to hold.... heres why First i tried to find reasons NOT to buy this stock... they were hard to come by, but heres a few: 1) debt is a little high at 3.21B, but not outrageous 2) projected PEG is a little low at 2.15 for the aggressive campaign theyre on 3) they dont carry any fresh produce or raw meats... this is a big turn off.. it means no matter how convenient they are, eventually people still have to shop elsewhere..... i wish theyd at least carry some basics, something i can throw on the grill when im off work without stopping you know where 4) this one sounds trivial, but i cant get it out of my head Theres ANOTHER new DG about a mile from where i work.. it sits on a major US highway about 2 miles from access to Bridgeport Lake I stopped by the other day to pick up a few things on my way home, one of those things being a cold beer... but when i opened the cooler, it wasnt cool..... Now i know people these days are drinking cold coffee for some reason, but i seriously doubt hot beer will ever become a fad..... so i told the employee "y'all have a problem!".... he said that cooler has been down over a month and they cant get anyone out to fix it...... now call me an alcoholic, but what kinda mamagement runs a lake front store without cold beer???... seems to me that would be a priority! But, in their defense, WMT sells piss warm beer and people still buy it... besides, thats just 1 out of 13,000 stores, so maybe im being too hard on them Thats all i got for cons.. now the pros 1) footprint... the new DG model stores sit just under 6,000 sq ft... compared to the average WMT weiging in at 184,000... operation wise, this means they could run roughly 30 DG's for the cost on 1 WMT..... the current ratio is about 4/1... with around 3,200 WMT's vs 13,000 DG's..... that leaves quite a bit of room for growth! 2) convience!... this is the main selling point IMO... no matter what i buy, i cant get in and out of WMT in less than 30 minutes, ever!... but ive made countless 5 minute trips to DG...... more locations obviously means more accessibility, but it also spreads out store traffic.... you rarely see more than 5 or 6 cars in a DG parking lot, and rarely more than 2 people in line at the register..... this is good for the customer, but what about the business??..... well, with 4x the stores opperating at 1/30th the cost, the margins almost even out 3) immunity to AMZN.... this could be considered part of #2, but i think it merits its own notation There are some necessities you just don't order online... when you run out of toilet paper, you need it now, not in 3 to 5 business days..... if this stay at home/click n ship economy continues to grow, here is one brick n mortar that wont be affected 4) more numbers... im still a little fuzzy on numbers, but im learning... and to me there looks to be more good than bad here Currently DG is trading at only 0.94 x revenue.. with a forward P/E of 15.1... thats pretty thrifty i think! I mentioned the weak PEG above, but thats contradicted by a healthy 23.2% ROE An ideal investment offers value AND growth right?... is that what we have here?? I think this stock may find its way into my 401k when i get this "brokerage link" thing set up So if anyone sees cause that these two should not bewed, speak now or forever hold your peace
Go there all the time and since they bought out dollar tree a lot of items have dropped in prices. I use these on a regular basis, Aldi--Dollar tree-- Dollar general.. Don't do Walmart that often, to much trouble to park, walk a mile from section to section and wait in line 20 minutes because only 1 register is open..
Actually Dollar Tree bought out Family Dollar.. in fact, they stole the bid from Dollar General... but they are still competitors, not parteners I like the way Aldi is run.. and i like saving a ton of money when i go there But, you have to learn "how to Aldi".... you can't just go in there and wing it... that store is for the hardcore bargain shoppers.... and i dont think it apeals to the majority of the busier, lazier America
That whole "dollar dollar dollar deal" is kinda confusing, and i dont completely underatand it DG actually bid higher, but DLTR got it... and because of some anti trust something or another, they had to sell 300 family dollar stores to DG
I was wrong, thanks for the correction Jrich.. I think more folks are becoming thrifty and the dollar type stores are booming. Smaller layout with the more everyday items draws the customers, they always have a parking lot full of cars. We have 2 in my area about 5 miles apart. I live in a smaller rural type area about 10 miles west of Nashville Tn.
Dollar General $DG is looking good here at 12x earnings! They will soon be able to do buybacks again after pausing them for 2 years in order to pay down some debt.
