The article posted by DealRaker says that Temu has been stealing customer business from DG and DLTR. That sounds like a much more likely culprit for the depression in activity than elevated shrink, which tends to be overblown as a narrative by people pushing a political agenda. Its a real question whether something like that will knock dollar stores off the historical long term trajectory they have seen, which is a core part of the thesis for people investing in it today. I don't know what the answer is for DG on whether its enough to knock them off, but it speaks to the potential for competitive threats to undercut what has been a long standing moat. Temu is a different execution model than the one DG is playing. I can imagine it winning in the long term after seeing how much of the underlying economics Amazon has been able to undercut in traditional retail. Good find on the article.

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