Capitalizing on the post-global financial crisis frugality theme, Dollar General is expanding in rural America by catering to low-income shoppers left behind by other retailers. As one of the most profitable retailers, Dollar General's stores are profitable with a footprint as small as a basketball court and fewer than 1,000 homes according to the WSJ interview with CEO Todd Vasos.
"Dollar General’s target shoppers come from households earning $40,000 or less. Its primary competitor, Dollar Tree Inc., has more suburban locations and sells all items for $1, including unbranded knickknacks that attract shoppers browsing for fun."
WSJ: Dollar General Is Rural America's Indispensable Store
“A forward earnings multiple of 19 times is the only thing about Dollar General that is pricey. It is justified by demographics alone.”
FT: Dollar General: buck stops here
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