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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks D / Dollar General (DG)
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Author: tedthedog   😊 😞
Number: of 285 
Subject: interesting video on DG
Date: 09/10/23 10:45 AM
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No. of Recommendations: 6
YouTube: How Dollar Stores Quietly Consumed America (Wendover Productions)

Clearly promoting a specific take on DG (towards the end), with the conclusion "DG is bad". But interesting in part because he first cites specific numbers like typical rent, staff salary, etc so one can begin to see how DG is profitable.

Quick notes:
- DG has very low rent in its typical very rural locations, and in its very urban, economically disadvantaged, locations
- DG has very low staff ratio who are mostly paid minimum wage.
Cost to run a store is low.
- DG doesn't support many product choices, but has a huge market for the limited choices it does support and hence huge pricing power
- DG isn't always cheap(er), part of their profit is from taking advantage of them being the 'only game in town'. This can also be a higher 'per unit' price, e.g. they sell smaller sizes of laundry detergent because although their customers might like to buy larger sizes at lower per unit price at say a more remote Walmart, they (a) don't have the cash and (b) DG is more convenient. These customers subsequently come back frequently to DG.
- DG sucks money out of these communities, as opposed to local small businesses where the money is respent within the community
- "DG is bad" is the conclusion, along the way is an interesting narrative
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This community has written 284 posts about Dollar General. The article-length ones it recommended most:
DG earnings · 30 recs · 2024
Past as Prologue? · 27 recs · 2023
dg, the new value line, · 9 recs · 2024
TEMU · 9 recs · 2023
DG: Theft · 7 recs · 2024
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