No. of Recommendations: 7
There is thread going on at ValueInvestorClub highlighting DG as a short. The gist of it is there are multiple headwinds (reduced SNAP benefits, cannot spend SNAP on junkfood, etc.) but the main one is WMT is a)cheaper per unit for most products b) now delivers into rural areas cost-effectively. Hence their core customer can spend at WMT for cheaper and more conveniently than before (prior, the core customer had to drive ~50miles to WMT whilst DG was 5mi away). WMT gave a successful example of this capability in a small town in Texas (Leonard with 2K population) - the bread and butter for DG. Signs like the departure of Vasos are indicative of this thesis.
